Getting going on syndicating

[Dennis Yosco]

Hey BP

I’m looking to get into syndication and working with larger multi family units. I have a real passion for this niche in real estate investing. I’d love to find someone local to me, northern NJ, who is looking to work with someone.

I've started by doing some market research in a few areas. I hired a VA to do some data entry for me and skip trace owners. I have a few lists of 100-200 apartment complexes with units from 10 and up. I'm looking for emerging markets as well as markets local to me.

My next step will be to break down those lists to find at least 50 subject properties that have potential. After I’ve done that I’m going to reach out to local brokers to that area and see if anyone knows the owners of those places. Or I’ll directly call the owners if I have their information.

I have a bunch of people with cash ready to go. I can easily source 500-1.5m in cash from sophisticated investors and accredited investors I know directly. I’ve read multiple books on the subject and I’m trying to learn as much as I can. The thing I really need is real life experience.

I’m trying to do a mini syndication on a 9 unit building with a value add. I put an offer in already and reach out to some investors. I have 600k secured ready to go if the offer goes through. I have a property manager who can get it rented and manage it for 7%. This property is in an emerging market that’s next to an established market. It’s a block from the beach and can be rented as a vacation rental even, but I don’t want to do that.

[Taylor L.]

Take some time to talk with securities attorneys and figure out who you'll use for your business. Be sure to factor securities attorneys fees into your underwriting. You may find you need balance sheet partners to help you qualify for loans, so dedicating time to building those relationships would be beneficial as well.