Syndication Sponsors who have stood the test of time

Multi-Family and Apartment Investing
7yFollow

Syndication Sponsors who have stood the test of time

Andrey Y.
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes

Investing in syndications is a great option for those of us who like our free time. Let's discuss the state of syndication investments and syndicators in general. I have invested in it several asset classes to include large apartments, self storage, ATMs, and mobile home parks.

Lately, the amount of deals and folks raising capital has increased. The quality of the deals are either the same or getting worse. So, I wanted to know what you guys are doing now. Are you continuing to invest in similar kinds of deals with a questionable risk-adjusted return given the current climate, or are you holding more cash over the last couple of years?

I have a few firms that I really like and will continue to invest in them. However, I'm looking for a diversification geographically and in terms of asset class. This leads me to search for other sponsors who specialize in other areas. What have you found? I think mentioning firms on this thread that you have had a positive experience with is great and it's probably free advertising for them. I welcome PMs as well.

Specifically, I'm looking to branch out into flex properties, industrial, and assisted living facilities. I'm less familiar with these asset classes but always eager to learn and speak with folks involved in this. Also, firm who are doing multi-family particularly well are of interest. Thank you.

0Reply
81 views

Most Popular Reply

Greg Tomita
Rental Property Investor · San Jose, CA · Member since 2017 · 39 posts · 13 votes
7y

I second Jay's recommendations of @Brian Burke and @Ivan Barratt.  I have invested personally with both and they do comprehensive analysis and sound projections. 

I am looking to also diversify so love to connect @Michael Ealy and @Roni E. sometime and hear more about your projects.

4Reply
See this reply in the discussion

25 Replies

Jump to latestLatest
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    @Brian Burke  Is one you probably know and I believe they have a brand new fund coming out. 

    @Ivan Barratt is mid west and the deals I have seen of his look very solid.

    @Ben Leybovich  and his partner while I don't think have quite the long term history the other two heard good things about their current deals.. 

    and I am sure there are other very fine syndicators out there.. 

    @Scott Meyers  has his storage business and academy you can see some really well thought through deals there. 

    these are just ones I know of or have invested with personally. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Andrey Y.
    OP
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Jay Hinrichs:

    @Brian Burke  Is one you probably know and I believe they have a brand new fund coming out. 

    @Ivan Barratt is mid west and the deals I have seen of his look very solid.

    @Ben Leybovich  and his partner while I don't think have quite the long term history the other two heard good things about their current deals.. 

    and I am sure there are other very fine syndicators out there.. 

    @Scott Meyers  has his storage business and academy you can see some really well thought through deals there. 

    these are just ones I know of or have invested with personally. 

     Thanks Jay! I love what Brian is doing and have been invested with Praxis for a while. I hear you on Ben as well, looking to invest some more capital once a new opportunity is released if it makes sense.

    I may have been in touch with Ivan Barratt but wasn't deploying any capital at that time. Definitely need to revisit.

    Jay, what are your thoughts on investing in syndicated multifamily in the Midwest? Return on cash seems to be there, I am a bit cautious on how viable these markets and deals will be if a recession hits.

    I think I have a little exposure to Single Family in the Midwest, but not Multi-family as of yet.

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Andrey Y.:
    Originally posted by @Jay Hinrichs:

    @Brian Burke  Is one you probably know and I believe they have a brand new fund coming out. 

    @Ivan Barratt is mid west and the deals I have seen of his look very solid.

    @Ben Leybovich  and his partner while I don't think have quite the long term history the other two heard good things about their current deals.. 

    and I am sure there are other very fine syndicators out there.. 

    @Scott Meyers  has his storage business and academy you can see some really well thought through deals there. 

    these are just ones I know of or have invested with personally. 

     Thanks Jay! I love what Brian is doing and have been invested with Praxis for a while. I hear you on Ben as well, looking to invest some more capital once a new opportunity is released if it makes sense.

    I may have been in touch with Ivan Barratt but wasn't deploying any capital at that time. Definitely need to revisit.

    Jay, what are your thoughts on investing in syndicated multifamily in the Midwest? Return on cash seems to be there, I am a bit cautious on how viable these markets and deals will be if a recession hits.

    I think I have a little exposure to Single Family in the Midwest, but not Multi-family as of yet.

    Generally I am not an expert at all in MF so would rely on those that are.. But as it relates to what I have seen From Ivan.. he has bought some pretty nice stuff  this is not C grade trying to make it B grade the last one I saw looked very nice compared to west coast nicer properties. But I know Ivan has the pedigree your looking for.. But again I know many on BP are accomplished these are just the one's I happen to know personally.  And I sat through 3 days of Scotts storage academy and was very impressed with that as well. And met some very accomplished storage owners its a nice niche and I personally have owned one storage facility so have a little knowledge of it.. not like Scott by any means of course.  However as you know it comes down to the sponsor so as your trying to do choose wisely.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Ronan DonnellyPro Member
    Investor · New York City, NY · Member since 2012 · 332 posts · 385 votes
    7y

    @Andrey Y.you have already been given some good names and you can get others through BP as well as sites like www.crowddd.com.

    If you hav enough capital to deploy you may want to consider partnering with some smaller sponsors on more favorable terms (co-gp) than you can get with the larger, more established syndicators.

    [email protected]
    1Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    @Andrey Y.

    I think it's great you're reaching out to BP community and asking for more operators. But you're a pretty smart guy (from our past communications). Do the reverse engineering, and start pro-actively searching for the operators in the areas of interest to you. You can do it via Google and BP. Ideally you'd need to attend some conference to gain face to face exposure, but I'm not sure if your job allows you to travel. So you decide. I think once you start your research you'll be surprised by how much you will find. 

    Best!

    1Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    7y

    Learn to underwrite the deal for yourself then talk to the sponsors who use the correct assumptions.

    Check reversion caps, assumed rent increases per year, assumed occupancy. 

    Without that baselevel knowledge you have no basis to fact check.

    1Reply
  • Christopher B.
    Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
    7y

    I have done some value-add deals on small multi-family in the midwest, the region I am local to, and they have gone well.  I have used my own money, but would like to do more of them, leveraging others who want to invest passively, or even partially active if you want to learn more about the business or the underlying math, as @Lane Kawaoka suggested. Besides CoC and IRR, what criteria are many of you closely looking at? What are your targets of CoC and IRR?

    0Reply
  • Andrey Y.
    OP
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Ronan Donnelly:

    @Andrey Y.you have already been given some good names and you can get others through BP as well as sites like www.crowddd.com.

    If you hav enough capital to deploy you may want to consider partnering with some smaller sponsors on more favorable terms (co-gp) than you can get with the larger, more established syndicators.

     Thanks, I signed up for that site.

    Wondering if they will call or email me.

    0Reply
  • Andrey Y.
    OP
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Alina Trigub:

    @Andrey Y.

    I think it's great you're reaching out to BP community and asking for more operators. But you're a pretty smart guy (from our past communications). Do the reverse engineering, and start pro-actively searching for the operators in the areas of interest to you. You can do it via Google and BP. Ideally you'd need to attend some conference to gain face to face exposure, but I'm not sure if your job allows you to travel. So you decide. I think once you start your research you'll be surprised by how much you will find. 

    Best!

     Thanks Alina! I do travel quite a bit, we will see if I can hit up a couple of those conferences. It's been on my list for a while.

    I have been impressed with some of the folks I am investing with already and the model of passively investing in syndications in general. I almost don't see a need to buy individual properties myself anymore.

    Travel and language learning has been taking up what seems like all of my free time but I need to carve out some serious hours for a deeper dive into asset classes and operators. Still staying current on general finance and macro-economics at least. Been slacking with the rest though ;)

    0Reply
  • Andrey Y.
    OP
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Lane Kawaoka:

    Learn to underwrite the deal for yourself then talk to the sponsors who use the correct assumptions.

    Check reversion caps, assumed rent increases per year, assumed occupancy. 

    Without that baselevel knowledge you have no basis to fact check.

     Lane, aloha.

    I get what you are saying, but I feel like you can only underwrite to a pretty superficial level unless you happen to be an expert in that market-submarket.

    Let me give you an example. Let's say the sponsor plans for $8K/unit in reno costs. Now, you have no idea if it will cost $8K, $5K, or $20K. So many variables in play. To include what materials the sponsor decides to use, labor costs, fluke capex costs, random flux in materials and labor, and this is what the sponsor has to deal with -- who is actually an expert in the submarket! You and I typically aren't.

    This is just one example of many that come up as you are underwriting.

    1Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    7y

    Superficial first but I plug the rent rolls and trailing 12 month profit and loss statement into my analyzer.

    Then compare it with the 3-6 syndicated deals I see every month.

    0Reply
  • Michael Ealy
    Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
    7y
    Originally posted by @Andrey Y.:

    Investing in syndications is a great option for those of us who like our free time. Let's discuss the state of syndication investments and syndicators in general. I have invested in it several asset classes to include large apartments, self storage, ATMs, and mobile home parks.

    Lately, the amount of deals and folks raising capital has increased. The quality of the deals are either the same or getting worse. So, I wanted to know what you guys are doing now. Are you continuing to invest in similar kinds of deals with a questionable risk-adjusted return given the current climate, or are you holding more cash over the last couple of years?

    I have a few firms that I really like and will continue to invest in them. However, I'm looking for a diversification geographically and in terms of asset class. This leads me to search for other sponsors who specialize in other areas. What have you found? I think mentioning firms on this thread that you have had a positive experience with is great and it's probably free advertising for them. I welcome PMs as well.

    Specifically, I'm looking to branch out into flex properties, industrial, and assisted living facilities. I'm less familiar with these asset classes but always eager to learn and speak with folks involved in this. Also, firm who are doing multi-family particularly well are of interest. Thank you.

     Hi Andrey, I invest in Cincinnati OH primarily in apartment building and we buy hotels nationwide.

    I have been investing since 1999 and since 2006 when we started raising capital from investors, we have never lost investor capital even through the 2008-2009 recession.

    I agree with your observation. The quality of deals from some syndicators are marginal at best and can be disastrous when cap rates start increasing again. A lot of them have not gone through the 2008-2009 recession. On the other hand, we don't get into a deal unless the project IRR is at least 30%, preferably 40%. Being selective in the projects we work on, combined with the fact that we're vertically integrated, enables us to deliver superior returns like this.

    I also personally invest in syndicated deals (medical buildings, not apartments - so I have some diversification) and I am interested in diversifying some more. Let's compare notes.

    0Reply
  • Andrey Y.
    OP
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Michael Ealy:
    Originally posted by @Andrey Y.:

    Investing in syndications is a great option for those of us who like our free time. Let's discuss the state of syndication investments and syndicators in general. I have invested in it several asset classes to include large apartments, self storage, ATMs, and mobile home parks.

    Lately, the amount of deals and folks raising capital has increased. The quality of the deals are either the same or getting worse. So, I wanted to know what you guys are doing now. Are you continuing to invest in similar kinds of deals with a questionable risk-adjusted return given the current climate, or are you holding more cash over the last couple of years?

    I have a few firms that I really like and will continue to invest in them. However, I'm looking for a diversification geographically and in terms of asset class. This leads me to search for other sponsors who specialize in other areas. What have you found? I think mentioning firms on this thread that you have had a positive experience with is great and it's probably free advertising for them. I welcome PMs as well.

    Specifically, I'm looking to branch out into flex properties, industrial, and assisted living facilities. I'm less familiar with these asset classes but always eager to learn and speak with folks involved in this. Also, firm who are doing multi-family particularly well are of interest. Thank you.

     Hi Andrey, I invest in Cincinnati OH primarily in apartment building and we buy hotels nationwide.

    I have been investing since 1999 and since 2006 when we started raising capital from investors, we have never lost investor capital even through the 2008-2009 recession.

    I agree with your observation. The quality of deals from some syndicators are marginal at best and can be disastrous when cap rates start increasing again. A lot of them have not gone through the 2008-2009 recession. On the other hand, we don't get into a deal unless the project IRR is at least 30%, preferably 40%. Being selective in the projects we work on, combined with the fact that we're vertically integrated, enables us to deliver superior returns like this.

    I also personally invest in syndicated deals (medical buildings, not apartments - so I have some diversification) and I am interested in diversifying some more. Let's compare notes.

     I am interested in looking into hotels and medical buildings. PM me and let's chat and compare notes.

    0Reply
  • Roni E.Pro Member
    Specialist · Earth 2.0 · Member since 2019 · 598 posts · 271 votes
    7y
    Originally posted by @Andrey Y.:

    Investing in syndications is a great option for those of us who like our free time. Let's discuss the state of syndication investments and syndicators in general. I have invested in it several asset classes to include large apartments, self storage, ATMs, and mobile home parks.

    Lately, the amount of deals and folks raising capital has increased. The quality of the deals are either the same or getting worse. So, I wanted to know what you guys are doing now. Are you continuing to invest in similar kinds of deals with a questionable risk-adjusted return given the current climate, or are you holding more cash over the last couple of years?

    I have a few firms that I really like and will continue to invest in them. However, I'm looking for a diversification geographically and in terms of asset class. This leads me to search for other sponsors who specialize in other areas. What have you found? I think mentioning firms on this thread that you have had a positive experience with is great and it's probably free advertising for them. I welcome PMs as well.

    Specifically, I'm looking to branch out into flex properties, industrial, and assisted living facilities. I'm less familiar with these asset classes but always eager to learn and speak with folks involved in this. Also, firm who are doing multi-family particularly well are of interest. Thank you.

    I would do your homework. Brian at Praxis are talented folks, and Ben is hardworking and focuses on AZ. I would see who you click with and like working for. For example, our team is investing over $100M into student housing and focusing on just cash flow as Class B+ assets with no rehab and monthly distributions.

    I would see what asset group you like if a specific state you want to be in and try to focus on a deal that monthly pays you.

    0Reply
  • Greg Tomita
    Rental Property Investor · San Jose, CA · Member since 2017 · 39 posts · 13 votes
    7y

    I second Jay's recommendations of @Brian Burke and @Ivan Barratt.  I have invested personally with both and they do comprehensive analysis and sound projections. 

    I am looking to also diversify so love to connect @Michael Ealy and @Roni E. sometime and hear more about your projects.

    4Reply
  • Spencer Gray
    Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
    7y

    I can't say enough great things about @Ivan Barratt and the BAM team, we're happy to have partnered on multiple projects together. 

    2Reply
  • Bobby Shell
    Investor · Fort Collins, CO · Member since 2018 · 165 posts · 127 votes
    7y

    @Ronan Donnelly low ball me here, but what is an entertaining level GP amount? Obviously this could be sky high, but entertain my Q because you raise a great point!

    0Reply
  • Travis Watts
    Investor · FL · Member since 2017 · 247 posts · 245 votes
    7y

    Hi Andrey, I've invested in 14 syndications in the past several years with many Sponsors/GPs and have found it rewarding to have geographical diversification and passive income streams. Happy to share the good, bad and the ugly in my experience. Feel free to DM

    0Reply
  • Spencer Gray
    Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
    7y

    @Bobby Shell It absolutely depends on the (size, track record, need) operator, rest of the GP team, value you bring to the table beyond just capital (providing a guaranty or being a KP, connections, raising additional capital, etc).

    To some $500k might move the needle to get a spot in the GP, others it may be $5M. 

    0Reply
  • Bobby Shell
    Investor · Fort Collins, CO · Member since 2018 · 165 posts · 127 votes
    7y
    Originally posted by @Spencer Gray:

    @Bobby Shell It absolutely depends on the (size, track record, need) operator, rest of the GP team, value you bring to the table beyond just capital (providing a guaranty or being a KP, connections, raising additional capital, etc).

    To some $500k might move the needle to get a spot in the GP, others it may be $5M. 

     500k is the low ball it sounded like? That is fair.

    0Reply
  • Spencer Gray
    Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
    7y

    @Bobby Shell it could be less, again all is relative in terms of size of the deal / operator and ones ability to negotiate. 

    0Reply
  • Bobby Shell
    Investor · Fort Collins, CO · Member since 2018 · 165 posts · 127 votes
    7y
    Originally posted by @Spencer Gray:

    @Bobby Shell it could be less, again all is relative in terms of size of the deal / operator and ones ability to negotiate. 

     Ja feel my friend. Thanks for clarity. 20 units, vs. 40, vs. 500. vs 5,000. Makes sense!

    0Reply
  • Ronan DonnellyPro Member
    Investor · New York City, NY · Member since 2012 · 332 posts · 385 votes
    7y
    Originally posted by @Bobby Shell:

    @Ronan Donnelly low ball me here, but what is an entertaining level GP amount? Obviously this could be sky high, but entertain my Q because you raise a great point!

    Hi Bobby, it really depends on how much you bring to the partnership and how much of a need there is for that contribution whether capital or other. Feel free to DM me and I can share my own personal experience.

    [email protected]
    0Reply
  • Andrey Y.
    OP
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Spencer Gray:

    @Bobby Shell It absolutely depends on the (size, track record, need) operator, rest of the GP team, value you bring to the table beyond just capital (providing a guaranty or being a KP, connections, raising additional capital, etc).

    To some $500k might move the needle to get a spot in the GP, others it may be $5M. 

     Being a GP sounds great. I will definitely consider this in the future as a way to learn. But for those of us who are trying to stay pretty darn passive, this wouldn't be a good route. Correct me if I am wrong.

    0Reply
  • Andrey Y.
    OP
    Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Spencer Gray:

    I can't say enough great things about @Ivan Barratt and the BAM team, we're happy to have partnered on multiple projects together. 

     I am trying to get in touch with Ivan. It says at the bottom of his email sig his phone #, and that calls and texts are welcome. I tried sending a text to set up a time to chat but no reply. Maybe there is a better way to get a hold of him..

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free