Investing in a Syndication as a Non Accredited Investor

[Brian G.]

One of my goals is to get involved as a passive equity investor in apartment buildings. How can I accomplish this if I am not an accredited investor? What type of syndicator is likely to work with someone who is not accredited? Any tips or advice? Thanks!

[David Thompson]

To Joseph's point, MF clubs would be a place to start.  You can benefit from learnings w/an education focus / system and the deals will be laid out and vetted per the club leaders model.  The club leader stamps their approval on the deals that meet their criteria.  If I was not accredited, I would be looking into clubs to start.  Get some learnings, many are similar but all have their own system, you'll meet a lot of like investors, syndicators typically are molded out of the club (graduate to doing their own deals), etc and like Joseph mentioned, you'll know which syndicators / deals allow non accredited.  Outside of clubs, believe you are right, most are setup for accredited investors.   I've talked w/sponsors in these clubs.  There are positives and negatives.  The biggest positive for the sponsor is the capital raise is fast and easy.  Can be funded in 24 - 48 hours because of all the club members waiting for the next "stamp approved" deal from the club leader.  Downside for sponsors in clubs is usually there are restrictions in the deal that limit the upside for the GP. Experienced and savvy sponsors will typically migrate over time to wanting to be independent, raising their own capital and then carving out their own destiny.  Others will be dependent on the system from where they came but will not ever have to learn how to raise capital.