Beginning Syndication Fund

[Joshua Israel]

Hey BP,

I am a graduate student in a real estate development program. I do not have considerable funds to get into real estate myself because of this. I have a partner that is willing to contribute money into a LLC in return for my management. However, I also wanted to start doing syndication in my area (Buffalo, NY). What are some things I need to have in place and/or know in order to begin starting a syndication fund. Lawyers, Property management, LLC Formation etc?

Thanks to everyone in advance!

[Paul Moore]

Hi @Joshua Israel. On a podcast yesterday, I was asked what my 55-year old self would tell my 20-something-year-old self. Assuming I would listen. I said that I would recommend that I jump into large scale commercial real estate and syndication as early as possible. That is a game-changer, and a great path to real wealth. So congrats, I think you are on the right track. 

I would start by prioritizing the assets and the team. Where is your experience? Can you partner with others who have experience in multifamily, self-storage, mobile home parks, or some other asset class? It will be important for you to start a track record or have a team with one before asking strangers to invest. 

And can you develop an acquisition pipeline? Where will you locate deals? Can you get off-market deals? I highly recommend having a property management team or two identified before acquiring an asset. Again, you may want to be heavily involved early on to build your track record. 

When the time is right, you will need a syndication attorney. There are many good ones out there. Forming an LLC is easy. You will also want a good investment portal eventually. You can do your first few deals without this, however.

You are on the right track!  You may want to get a paid coach or mentor to help you get the experience you need to get to the level of syndicating deals, but I would do that as early in your career as possible.  Feel free to reach out to me if I can help in any way.