How do I get started in Mutli-family Syndication

Question

I've been reading/listening about multi-family syndication for a long time now. It's been two years since I started my education journey, and the more I learn, the more I want to work towards completing my first large multi-family syndication deal. I've always found that real world application and hands on training is more beneficial for me as a learner. In addition, having a mentor that has experience in this category is also something I am interested in. I'm looking to take the next step and learn as much as possible before taking this on full-time. With all that said..

I'd like to offer my services and time to help anyone who is in the multifamily syndication arena. If you need someone to run a deal analysis or search for properties I'd be happy to assist. If there is work to be done that you don't have time for I would like to see if I can handle it. In exchange, I would like your mentorship and guidance for syndicating multi-family deals. If there is any interest please comment below or send me a DM and let's discuss next steps. I'm looking forward to any feedback I get. Thanks!

Taylor L. · Answer

It's a long road. Everyone has a different entry point. Adding value to an existing syndication team is a proven foot in the door. It helps if you take a very active role in building relationships with experienced syndicators and finding the ones who have a need for your specific skillset.

Don't try to eat the whole apple on the first one!

Annie Dickerson · Answer

@John Lyszczyk Multifamily syndication is such a great way to invest in real estate and can provide a win-win for all parties involved, when done right.

I love that you’re looking to add value to experienced teams. In addition to underwriting and due diligence, another thing that GP teams often look for in a partnership is the ability to bring capital to the table. This is how I got my start in syndication and be a great way to break into the syndication world.

Of course, due to SEC regulations, raising capital can’t be the ONLY thing you do in the deal, but it can certainly help attract potential partners, if you are able to help raise some capital.

The good news is that raising capital is one thing that you can start on your own, even without partners or without a deal.

Start by talking with friends and family about what you’re learning in real estate (with 2 years of learning under your belt, you should have no shortage of knowledge and wisdom to share!).

Gauge their interest, and let them know that you’re looking to co-syndicate a deal in the near future. Share a sample deal with them, and walk them through how you vet a potential deal or partner. Build a short list of friends and family who might be interested and roughly how much they might invest.

Then, as you approach potential partners, you can bring something of value to the table that will help get the deal done, in addition to your knowledge and skills. Good luck!

AJ Shepard · Answer

@John Lyszczyk

We set out a goal to get into syndication last year.  We felt that we were poised to tackle projects within our immediate area where we currently operate in (Property management, construction and brokerage in Portland Oregon, specifically west side).  We obtained a 9 unit deal and just finished the remodel on it this last month.  We are now looking for another deal.

I’m sure you are listening to the Michael blank podcast, joe fairness the best advice ever podcast as they really do lay out the framework on how to go about getting started.  What I can say is that knowing your market, knowing costs and knowing future rents and values really well makes a big difference.  Makes a big difference in investors confidence in you to perform as well.

Happy to have a chat with you and may be able to provide some work to help out, there sure is enough of it.  But like someone said already, finding someone in your market that you want to operate in may be the best.

Evan Polaski · Answer

@John Lyszczyk, I started out that I was a single family investor looking to move into larger projects and would like to pick their brain about market conditions, opportunities, and general just a "getting to know you" meeting.

Every one that I reached out to said yes.  As has been brought up before, be conscious of their time, make sure you have a general understanding of what you are looking for, and how real estate works.  They shouldn't have to explain a cap rate to you, but be clear that you are just starting your journey into larger deals.  I went in with a general idea of how I would plan to structure a deal (preferred returns, equity splits) for equity investors.  And I had a basic knowledge of financing, but also met with several loan brokers to do the same thing (what are market conditions, what type of products are you mainly offering, what are standard underwriting provisions, etc).

Evan Polaski · Answer

@John Lyszczyk  to tag onto what Taylor mentioned, I would start your networking.  It is easier to build relationships in person than virtually, although certainly possible.  I know that is challenging with everyone cautious of gatherings.

Meeting with brokers, heading to meetups and REIA groups when they come back around, and asking for referrals to others to meet with can all help you start to get in front of people you ultimately want to meet.

How do I get started in Mutli-family Syndication

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