SFR wholesaling is great, Apartment syndication is better!

[Scott Bower]

Hey BP! My name is Scott Bower, and I have been wholesaling SFR's with great success in the Phoenix market for the last 3 years. When I first started my investing career, I thought apartments was what I wanted to do so I hired Dave Lindahl to teach me back in 2013. At the time, I met a former student of Dave's local here in Phx who syndicated 350 Apt units using his system, so I had to meet him. After our meeting, we decided at the time that wholesaling was a better way to make quick cash so we put a system in place for that. I worked with him for about 6 months before breaking off on my own. Since then, I move between 5-10 SFRs/month. It's great, however apartments are where it's at.

I actually hired another BP member, and friend of mine Joe Fairless last year to help me with getting into syndication. I have been so tied up with the SFR's I haven't had a lot of time to spend on apartment syndication.

The major issue I am having is finding passive investors who want to invest in larger assets. I have many that will invest in SFR's, but very few that want to invest in anything larger. Any tips is greatly appreciated! Look forward to any advice out there!

Thank you! 

[David Thompson]

Hi Scott,

I started with Joe Fairless and raise more money than anyone in his program and continue to work with him on his deals.  Joe's been a great coach in my experience with the best value of being able to raise capital for his deals and become part of the general partnership vested ownership, getting involved in other ways to learn the business.  I stay very busy with this and it's been a great experience.

I find a lot of my investors already have a few SFR properties but apartment investing really is something new to them so its more about a relaxed approach to educate them. There are advantages to commercial apt investing over SFR in forced appreciation and scale. These are principles that one must understand to educate the clients you have who are comfortable with houses. The key with capital raising is to leverage the credibility and experience of the sponsor, doing deals in strong markets and you finding and educating investors on it. Hiring a coach that is doing big deals frequently would give you the opportunity to learn this craft, something you can't learn with clubs or trying on your own without the experience of the sponsor.

https://www.biggerpockets.com/blogs/9145/53820-why...