Long Term Goal: Multi-family Syndicator

[John Burns]

Hello all! I am a managing member of a multi-member LLC that currently invests in SFHs using a BRRR strategy. We are early in our business life but also have full time jobs that we are contractually tied to long term, so we can't drop everything and focus 100% on growing the business. However, that all starts to change in the next 5 years.

Our long term goal is to focus on syndicating 100+ unit multi-family deals and capture both syndicating fees as well as have equity stakes. In 7 years, we would like to lead a syndication as General Partners. I think our strength is that we will be able to bring cash to the deals. Our focus on executing a BRRRR strategy now will produce the net worth that we can leverage later for these syndication deals.

What advice would you give us to get ready to transition from SFH investing to syndication from now thru year 5? I know having cash available will be key, but can't be our only strength if we want to lead deals. What skills to learn, networks to build, and experience to gain would help round us out and set conditions for success? Thank you for your advice.

[Spencer Gray]

Why wait 5-7 years from now? Like @Chris Salerno said, you can invest passively with other syndicators and learn the ropes. You can even tell them (I did this) your plans and you will invest but want them to explain the process as the deal progresses.

If you already have the ability to raise funds and know how to rehab, you could approach a syndicator and propose being part of the GP by bringing in a large % of capital (more than 20% of the equity) in addition to you assisting with any rehab/construction/project management.

I did a write up on being a capital raiser / co-gp / guarantor recently if you're interested in learning more.

By doing this you get to gain experience while providing value to your investors and your partner/syndicator. You also will be able to leverage your partners experience, team and operations so your investors can be confident that there are pros running the deal and since they trust you already it's a win-win.

Good luck. You can do it THIS year not in 5 years.