How to start a syndicate?

Question

Hi BP,

i have quite a number of relatives and friends who have money and who are looking to invest.  Are there any resources out there to start a syndicate?  What do you recommend I do?  I want to harness these resources properly and give everyone a great return.

Any help would be appreciated!

Mike Taravella · Answer

Hello @Amul Sutaria I would recommend reading the "The Best Ever Apartment Syndication Book" by Joe Fairless and @Theo Hicks goes through the entire process.

Oleg Shalumov · Answer

@Amul Sutaria I would recommend learning about syndication before starting one.

Once you are familiar with the mechanism of syndication, in your case, if you have funds - you can partner with person who have a deal and looking for the funds. This way you also can see the deal from inside and work on your own deal next (or till you feel comfortable)

Sam Grooms · Answer

Reach out to Jillian Sidoti at https://www.crowdfundinglawyers.net/about/jillian-sidoti-esq/ and she can walk you through setting up your syndicate.

Joshua Davies · Answer

@Amul Sutaria I am in agreement with the above posts, definitely consult with a securities attorney prior to anything else.

I would also look to educate myself as much as possible on syndication's, it can seem very overwhelming to the non experienced investor. There are multiple sources of research/education here on the forum, however I highly recommend "Best Ever Apartment Syndication Book" by @Joe Fairless. I would hold off on going any further until you read Joe's book - it propelled me into the next stage of my investment career.

Good luck and don't hesitate to reach out!

Jillian Sidoti · Answer

Hi. I am a securities attorney as @Sam Grooms so graciously mentioned. If you need anything, I am best reached via email.

Allyssa McCleery · Answer

I think it would be helpful to find a successful syndicator in your area who you can hire or share part of the profit with in exchange for knowledge of the process. There is tons of information to learn but this would be a good way to get hands on experience.

Account Closed · Answer

@Amul Sutaria

Definitely, echo some of the other recommendations of educating yourself on what you're getting yourself into, rules around it, etc. In addition to the number of books and podcasts,  would definitely recommend starting to put yourself out there at live training events and conferences so you can get around other investors to learn from, find partners you can work with, etc. Best of luck!

Jason A. · Answer

If you're going it alone and plan to use OPM then you'd better know what your doing. Learn, learn learn! I recommend reading three books to get your feet wet:

1 Wheelbarrow Profits

2 Financial Freedom with real estate investing

3 Best ever apartment syndication book

There are podcasts by each of the above authors as well.

Once that's done start underwriting sample apartment deals using loopnet listings.

Account Closed · Answer

Technically, you can raise money from family and friends privately correct? No need to be a syndicate?

Larry Caper · Answer

Account Closed if his friends and family are expecting a return without being involved in the day-to-day (or have a role and/or responsibility), the equity raise is considered a syndication.

Disclaimer: I am not an attorney. Please consult with a securities and/or real estate attorney.

How to start a syndicate?

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