Recommended Syndication Companies?

Question

Hey all.

I'm looking to invest in 4-6 syndications in the next 6 months, and would appreciate receiving recommendations on syndication companies that are known, and trustworthy, and preferably that you worked with.

I know and am aware there's no guarantee, however since I'm pretty new in the real estate game, I'm not too familiar with syndications companies, and it's important for me to invest with a company that has been around AT-LEAST 5+ years, which seems to be not so common right now to what I'm finding.

I did just invest with Ashcroft Capital, which from learning about Joe and Ashcroft, looks like a solid company. Would be great to receive recommendations for other companies such as them.

Thanks!

Guy.

Steve S. · Answer

@guy idan  It's great to vet the sponsor, but you should also understand the "nut and bolts" of each syndicated asset that you plan to invest in. Most of the passive investors here would recommend reading The Hands-Off Investor by Brian Burke. Also, listen to podcasts that are geared towards passive investors like Passive Wealth Strategies for Busy Professionals and Passive Investing From Left Field. I'll DM you some syndicators that I know, like, and trust.

Anderson Bigate Nogueira · Answer

Hi @Guy Idan, like others in this tread said, is important that you "vet" the Syndicator (aka sponsor) - every component of the syndication is important (the property location and the local economic drivers, property class, the loan type, property management company, the sponsor, etc.) but I would say this is more as a bet on the jockey than on the horse. A great property in a prime locations means nothing on the hands of a terrible syndicator. Take a look at REEP Equity and Granite Towers Equity Group and check their experience and deal offerings. I can connect you directly with the syndicators if you want. All the best,

Paul Moore · Answer

Hey @Guy Idan. I second what’s been said above and I definitely recommend The Hands-Off Investor.   You should also join Ian Ippolito’s group, The Real Estate Crowdfunding Review. This site is dedicated to education and reviews Of syndicators and funds. Membership is quite restricted but the intel is incredibly valuable.   Good Luck! B

Badri Malynur · Answer

Thanks Chris, better to take this discussion offline, yes tech company but when sponsors want to present to Avestor fund managers , a key requirement is that they have to provide enough margins so that investors don't get a better deal if they go directly with sponsor. BTW, now a majority of our clients are not capital allocators but sponsors doing their own deals as they like the investor experience and significant savings vs doing one syndication at a time. (PPM, blue sky filings etc.)

Chris Seveney · Answer

@Badri Malynur

There are 100’s of funds that start at $10 or $100 now and do not require to be accredited

I am also not a fan at all of the fund of funds / customizable model as when the deal goes bad you are several levels from the sponsor and just paying a middle person fees that are not needed

Stephen Brown · Answer

I'd recommend talking to Jeffrey Donis here on BP. Good guy. Very knowledgeable. I can put you in touch if needed.

Guy Idan · Answer

Hey Dennis.

Thanks for the comment.

I'm looking mostly at larger syndications deals (150+ units, multi family), doesn't really matter where exactly, as long of course that it's a good, quality location.

Thanks!

Gino Barbaro · Answer

@Guy Idan

I would google syndication companies, and opt into all of their sites. Take a look at their strategy, their experience, track record, full cycle deals.

The other thing to do is to align your goals and objectives to the sponsor. They may be excellent, but if they don't align with your goals, it's a pass.

I would check out sites like Cash Flow Portal, who host syndication companies on their site.

Good Luck!!

Chris Seveney · Answer

of course you are going to disagree - that is your companies business model.

Out of curiosity who at avestor trains fund managers to do this, and what is their experience in managing/operating a syndication/fund.

Avestor to my knowledge is more a tech company (and I have heard good things about it).

Badri Malynur · Answer

Having launched over 200 funds, I respectfully disagree, from an investor perspective,  the key thing to look for in a fund of funds model is deals where you are getting the same or better terms than if you go directly with the sponsor. At Avestor we train fund managers to find such deals and in some cases find the deals for them. Then it is a win-win-win situation, investor wins because he does not have to go do a lot of research , invest smaller amounts, get a single K-1, sponsor wins because he can raise larger amounts from a single fund of funds entity and fund manager wins by generating income from the spread.

Recommended Syndication Companies?

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