Syndication Structures - Getting Started

[Matt Aquino]

Hi All,

I'd like to get a conversation going and seek people's guidance for resources and the basics on putting together (as a sponsor) a syndication of LPs to invest in small (8-20 units) multi-family buildings in major Northeast cities.

I am partnered with a small-time developer who has completed some value add projects with his own capital/financing and together we are now looking to grow and scale into slightly larger buildings over time.  We would like to raise a few million for a very specific asset type to have the bullets ready to acquire when discounted opportunities arise (we have a pipeline of potential deals and are mining for more). 

What I wanted this conversation to be around is the basics of starting a RE investment syndication. I received advice to purchase Joe Fairless book, which I am about to embark on reading. But I wanted to parallel run a conversation here because of the incredible resources and experiences there are within the BP world. To establish the funds - what are the steps to take, pitfalls to be aware of, etc. ??

[Greg Dickerson]

Originally posted by @Matt Aquino:

Hi All,

I'd like to get a conversation going and seek people's guidance for resources and the basics on putting together (as a sponsor) a syndication of LPs to invest in small (8-20 units) multi-family buildings in major Northeast cities.

I am partnered with a small-time developer who has completed some value add projects with his own capital/financing and together we are now looking to grow and scale into slightly larger buildings over time.  We would like to raise a few million for a very specific asset type to have the bullets ready to acquire when discounted opportunities arise (we have a pipeline of potential deals and are mining for more). 

What I wanted this conversation to be around is the basics of starting a RE investment syndication. I received advice to purchase Joe Fairless book, which I am about to embark on reading. But I wanted to parallel run a conversation here because of the incredible resources and experiences there are within the BP world. To establish the funds - what are the steps to take, pitfalls to be aware of, etc. ??

The best thing to do is read the book first. It is very detailed and will answer all your questions. There are no shortcuts. You need to educate yourself first so you can qualify the advice and opinions you receive here as there are very different levels of sophistication and experience.

Another great resources is https://www.crowdfundinglawyer...

They have lots of info and videos on the legal side and structures of syndicating deals.