Advice needed for becoming a syndicator when finances are lacking

[Ted Clayton]

Hey Guys,

My name is Ted and I have a goal of being financially free with multi family properties/syndication. However, currently my income isn't enough to cover my expenses now. Do I still pursue this goal while my finances are challenged? Any help will e greatly appreciated.

All the Best,

Ted

[Brian Burke]

Ted, a lot of people think that syndicating Multifamily properties is a quick road to wealth.  The reality:  it doesn’t work that way.  

Being a steward of someone else’s capital is a big responsibility.  You have to be sure you are ready before you take the plunge.  Next, to acquire Multifamily deals you’ll also need to borrow money for the acquisitions.  Those lenders will require that you have a certain net worth and cash reserves.  So again, you have to be ready.  Plus, you’ll need some cash to get this going even if investors are ultimately funding the deal.  You’ll have deposits, due diligence and legal costs before you take in that first investor dollar.

Finally, lenders, and to an even greater extent, investors, will want to see a level of experience before they’ll buy a ticket to your ride.  

This all means, yes, pursue your goal, but enter into that pursuit with realistic expectations. Get started with small properties and work your way up so you can build your track record, experience, net worth and cash reserves. If all of that is too much, partner up with someone that brings the things that you lack and conquer this as a team.