Experience with Sponsors/Syndicators

[William Kim]

Hi BP fam,

In browsing through forums, I've come across a number of names in this business (Praxis, Ashcroft, Thompson Investing, Joe Fairless, etc.).  I'm curious to see if anyone is willing to share their investing experience with any syndicator.  Also, does anyone have experience investing in deals that have gone full cycle?  Or investing in different asset classes via syndication (multifamily vs. self-storage vs. mobile home parks) and would be willing to share their experience?  

Appreciate any feedback here!  

[Spencer Gray]

Hey @William Kim

I've participated in several dozen syndicated projects, the vast majority being Midwest multifamily, first as an LP but now primarily as a GP/Co-Sponsor. Currently we have one project being sold, three being refinanced and will hopefully have another project under contract shortly (knock, knock). Besides Multifamily, we've invested in industrial, commercial as well as medical office buildings. Several of these projects have gone full cycle and were very successful. As much as I like some other asset classes, B class/workforce housing is, in my opinion, the best risk adjusted return available of any investment vehicle and the strongest commercial real estate asset class. That's where all of my personal attention is at. 

It's important to not only determine the competence of a sponsor but to make sure that your goals and strategies are aligned. I've made relationships with some top tier operators (billions in the pipeline) who are extremely capable but they simply have a different strategy, and not a bad one at that, it's just not my strategy. At the end of the day there are plenty of fish in the sea and it's more than just finding a team that you trust. You have to first figure out what you want out of an investment and what your specific (somewhat realistic) goals are. 

Let me know if you have any specific questions and feel free to shoot me a PM.