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Updated almost 3 years ago on . Most recent reply

Syndication Management Software??
Good Afternoon BP
What types of software are people using to manage their syndicated deals? Is Argus worth the $$$, and would it even be able to do what's needed to manage a syndicated deal? or is that something a CPA should be doing for me?
Curious to know how people manage their deals through funding and post funding - or is this something to be hired out?
I'm searching for a program or programs that would help me put together 5-10 page brief investment summary's for potential investors and for working through feasibility for myself. Things to be included are development proforma, operation proforma, 15 year outlook with YOY financial performance, something that will calculate IRR each year, etc.
Are you using Power Point, Excel, a combination of both. I'd like to find something I can use to create a feasibility, deal structure, and summary.
Examples, advice requested. Thanks!
Most Popular Reply

@Adam Sheren, I've syndicated 1,646 units in the last 6 years, so here's what I would say based on that experience:
1. As @Bob Lachance mentioned, analyzing an apartment property is not something you leave to software. Every property is different and can have many nuances and variables that automated software will not do a good job accounting for. For me, I have a custom Excel file that I have built over the years that works very well and that I understand the inner workings of. However, I can understand how many people wouldn't want to do that (the point is Excel is more than sufficient)! So I would take @Junior Salters' recommendation and get Michael Blank's analyzer, and as you use it study how and why it come sup with the numbers it does. While I have not used it myself, I have not heard anyone say anything negative about it.
2. For your proforma or Investment Package, that is something you can outsource but not automate (at least not well). For me, my Excel spreadsheet automatically creates all the financial tables that get copy and pasted into the Investment Package. I believe Blank's analyzer does the same (someone who knows for certain please correct me if I am wrong). My office manager writes a lot of basic market related stuff, and any graphics are outsourced to a VA or someone from fiverr.com. Then at the end she takes all the parts, puts them together, corrects formatting issues, and makes it look professional. But when it comes to the critical stuff - the deal analysis, business plan, financial proforma, etc. - I write that. As the sponsor, you should know the deal better than anyone else, and you want that to be obvious to the investors. And it helps when they have questions - you'll know it cold since you wrote it!
3. For property management, we have 3rd party property management, and they use Yardi to manage all of the financials at the property level. There are a handful of good programs out there for that. Regardless of what program they use, the management company (or you if you are self managing and purchase a license for a program like Yardi) should be able to send you all kinds of reports: trailing 12, rent rolls, delinquency, etc. You could in a sense automate investor reporting by having some of these reports packaged and emailed to them, but in my experience most investors won't find this very useful. Most investors are going to want to get a well written prose update in addition to financial info. Until you really scale and have other knowledgeable employees or partners, the best person to write that is typically you!
Successful syndicating is really based on 2 things: finding great deals, and good investor relations. While lots of pieces can be outsourced, they don't lend themselves well to automation.
Andrew