Syndication and raising capital

[Joseph R Fornwalt]

So Id like to hear from some people that have syndicated or have raised capital to fund deals that they've either found or created. I understand that having a piece of real estate, where the numbers work, is key to having a good deal and not to short sight other components such as property management, contractors, etc... But I'd like some insight on how valuable having or creating a network of high income producing investors can be. Is being the individual with this network of investors a valuable component to a team? Long story short, is there value in not having a deal but having investors? Or do those of you having the deals find there is no need for what may be considered a middle man? Thanks!

[David Thompson]

thanks @josh

Hi Joseph,

It's definitely a team game and someone who thinks they can go big doing it all themselves is short sighted or has no life or both.  Capital is king and will always be.  Here's some of the essentials I've synthesized to about 5 key points learned in working on about 25 syndication deals and raising close to $100m (see blog post link below) 

I'll give you a few other ideas right here, if you feel you are selling something you are doing it flat out wrong.  Or, if you hated sales like I did after flunking miserably at that pursuit when I got out of college many years ago, carry on.  You are in the education and opportunity sharing game.  Controlled passion, being educated, working with great partners, sharing with others and providing them a great customer experience end to end is what its about.

Second, its the long game.  Now I did this in 3 years so how long is that.  If you love it, it's peanuts and you are not working anyway so your stamina and energy is off the charts.  To some who are in a hurry as in" I need capital for the next deal or one I have now " , these tips aren't much help.  

My top 2 specific tips would be:  Work alongside and join experts - think why would a lender or investor want to give me capital with little or no experience - you make it way harder on yourself like swimming upstream.  Later when you gain that experience, you can be your own lead.  Secondly, develop a thought leadership strategy that you are consistent with and see your network grow providing great content overtime.

https://www.biggerpockets.com/member-blogs/9145/67627-raising-capital-top-5-essentials