Raising Capital for Syndications

[Doonie Johnson]

Hi BP! My question to you all today is broad and general, "how do you raise capital?" In terms of finding and acquiring money from LP's. looking at 506B raises so no marketing the deals.

Where are you sourcing leads?

Are these previous LP's, or people you are educating on MF asset class?

What is your first conversation with them look like(creating preexisting relationship)?

What types of questions are you asking them?

What information are you giving them?

How do you ultimately end with a soft commit, is this in writing?

Would like to hear any and everyone's methods and practices, tips and tricks they've learned along the way. I'd also like to put out there I am open to having zoom/phone calls with anyone in this field. Currently raising capital to cosponsor on the GP side of deal! Contacts=Contracts

Quick background, I've helped raise money for SF flips and turnkeys. We did this through sourcing leads from social media(FB, linkedin, some instagram) and then would have a phone conversation, where we create rapport, learn their investment strategies, as well as their goals. Ultimately trying to create a relationship with them, rather than just spewing return numbers at them. How/what will be different from this strategy vs multifamily?

[Evan Polaski]

@Doonie Johnson

As Jackson mentioned, really a lot of these are for your attorney, as anything we tell you may or may not align with what your securities attorney is telling you.

But from a marketing standpoint, you are on a forum where many people offer educational content, and you will see a lot of groups that have limited experience doing the same.  They do this: a) because they can't talk about deals, and b) often times have little or no track record, so are "selling" their knowledge as their ability to execute.  (this is not a critique by any means).  Some people do this on social media, some people do this just through their existing network.  Everyone I know has always started with their existing network: friends, family, previous and current coworkers, etc.  Raising from truly outside parties is much harder without experience and track record.

The raise is a chicken and egg problem when starting out.  99% of the time, brokers won't award you a deal without clear ability to close.  Investors don't want to commit to anything until they see the deal.  Again, this is why you are going to likely use your existing network first, since they have trust in you.