So Many Questions about Syndication

[Joshua Howaniec]

I found this multifamily in Indianapolis, C class neighborhood. They are asking for 1.5 million and a deposit of 25% down. We are going to first offer seller financing and go from there. I am working my network of previous clients for the funds.

Here's the rub, I have no idea how to purchase this and still maintain any kind of ownership or equity (Raising Private Capital hasn't come in the mail yet)  I am a little paranoid that if I am not providing capital of my own that I will get cut out of the deal. So for starters I should probably address that. 

1. Am I being selfish, short sighted, or naive to expect any ownership/equity from a deal that I am not putting any money into myself? 

2. If investors on the deal are putting down $$ expecting equity doesn't that automatically cut me out since I don't have that kind of money to put down? 

3. Do I need to form an LLC, have the funds directed to my account and then purchase it via that? Again, Matt Faircloth's book hasnt come in the mail yet.

4. Is there a way to pull this off where I keep any part of the deal with no money down? That's probable a redundant question but I'm just spit balling here. 

[John Corey]

Joshua,

Your are very new to deals, structure and running the property. It comes across in your post.

So, rather than worry about your position in the deal, I think you need to partner with someone who has more experience. Your lack of experience will be a big red flag to cash investors.

Assume this is not your last deal. You are not going to be set up for life by keeping this one all for yourself. Your job is to make this a success for your cash investors so they want to fund deal after deal in the future. Your top job is to not lose their money. Then you need to make them a profit. What you make comes 3rd. That does not mean you will not do well. Just that your focus on being cut out while being very naive is scary for the cash investors.

If you found a great deal, assume you will find more. And, you likely have a deal which has any number of surprises which might turn it into a bad deal. So, build your team so this works well. The numbers and your share will sort itself out.