Flip Investor In Transition To Apartment Investing!

[Justin Eaton]

Hey everyone! I am looking to transition from primarily doing flip projects to multi family syndication. I would like to start with a 10-20 unit property in the local South Jersey market and grow from there. I've been a part time flip investor on the side since 2014 and I've just completed my 12th flip project. I've also done one wholesale deal, one BRRR on a SFR, one live in flip, and currently living in a house hack duplex. All of my projects have been in New Jersey (South Jersey).

I have read various books on multi family investing including The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges, Multi Family Millions by David Lindahl, Crushing It In Apartments and Commercial RE by @Brian Murray, and Raising Private Capital by @Matt Faircloth. I feel like I have a baseline knowledge 

With that being said, I feel like I have a good grasp on how multi family investing works in general and the power of value add when it comes to multi family properties. However, the syndication part I am not as well informed on. I wanted to reach out to the BP community and get some tips on how to  get started in multi family syndication deals. In addition, in the books that I have read, I haven't found too much info on how to structure the deals financially in terms of equity, cash flow, etc between myself (the sponsor) and the investors. 

Looking forward to good discussion! 

[Greg Dickerson]

@Justin Eaton your flip skills will transfer well into multifamily. A lot of syndicators started the same way including Dave Lindahl. Joe Fairless is also a former flipper turned syndicator and has the best book out on the subject right now. Also check out his website and podcast for some really great info on the syndication process. I have some great content on my podcast and YouTube channel as well you can find them on my website.

Deal structure is entirely up to you. I coach some of the top syndicators out there and I am seeing all kinds of splits. You can structure returns and equity splits any way you like. There are no rules. It’s all about the deal itself, your contribution and the expectations of your investors.