Apartment Syndications: Start small or Go big?

[Ashton Levarek]

Over the past several weeks I've had multiple conversations regarding how to get started in multifamily syndications. And the common theme, or belief is that it is best to start small. In fact, a close friend of mine even said, "We saw how successful you were, how you started with a smaller 16 unit first before tackling a 220 unit. So we thought we should do the same." To which I responded - 16, 50, 200 - its all the same except the bigger you go the more people on the team and the more specialized you get to be. The more focused you can be means the less you have to learn and do the things you hate. 

For example - If you are good at analyzing properties or developing relationships with brokers or raising capital or asset management - well that very well may be the only thing you do for the syndication team. 

So my question to you BP -

For an aspiring multifamily investor/syndicator do you think it is easier to start small, to tackle a 10-20 unit first or a 100 unit? Should someone learn everything first? Learn how to find, analyze, add value, and manage a small multifamily before getting into something bigger? Before Syndicating? 

Or should they focus more on finding the right people for the job? Should they focus on putting the right people in the right seats on the bus, as Jim Collins refers to it in the book "Good to Great"? Should they focus on networking with experienced professionals, other syndicators, thereby leveraging other peoples experience, knowledge and resources and exponentially expand and accelerate their capabilities as a Commercial Real Estate investor. 

I mean, why should I learn to ride a bike if my ultimate goal is to fly? Why think small if my goal is large? After all I don't need to know how my car works to be an excellent driver, I just need to know enough to optimize its performance (that and a great mechanic). 

Perhaps it is paradigm issue? As Steven Covey refers to it in 7 Habits of Highly Successful People. A mindset of I need to know everything myself before I am of any value to large team, or project. 

I don't know. But I do know this - "If you want to go fast, go alone, but if you want to go far, go together." African Proverb. 

What are your thoughts Bigger Pockets?