Facing a syndication dilemna

[Bennet Sebastian]

I’m an experienced commercial investor, general contractor and licensed broker having done about ten small commercial property flips over the past ten or so years. I had an equal partner on the first flip and then did the rest with my own money. I want to start syndicating larger deals now and try and have a stable of limited partners that I could go to for equity. I’ve only managed to line up a couple at this point and it’s not nearly enough to do what I want to do. However I have a very close family member who is loaded and could provide most if not all of the cash I would need for the foreseeable future. But there is a caveat.
He invests with his brother on several other businesses (mostly car washes) where his brother is the operator and he is the cash provider. So when I approached him about investing with me he said lets all three sit down and discuss it. I was afraid of this because I don’t necessarily see the value his brother would bring to the table considering I’m the only one with relevant experience. But he trusts his brother so I don’t think I have a choice but to work with the both of them if I want the money. 
Their dad also gets involved in most of their business dealings so that would be yet another person that would want input on the investments and how we would structure them.
When I started down the syndication path I was just going to take the traditional road which was I’m the deal provider and everyone else is the silent money provider. Now I’m at a fork in the road and don’t know which path I should take. Do I put myself at my extended family’s mercy and cater to the types of deals they want on the partnership terms they will agree to or continue down the path I started on? Granted I don’t know the terms yet but I suspect it won’t be the traditional syndication arrangement where I would earn my fees and promoted interest on the cash flow.

Thanks for your help BP.

[Evan Polaski]

@Bennet Sebastian, what makes you believe the brother or dad want anything more than to ask some questions?  

There is no harm in taking the meeting, talking with all parties and being clear on what you are looking for (read: passive investors).  Not knowing you or them, they may very well know what to expect, but are simply looking to vet you and your experience, as all investors will likely do.  

I would take the meeting and have a clear business plan ready to outline. Know your target markets, asset type, business plan, etc.  Of course it helps to have general return thresholds you are targeting, which includes knowing what your fees and waterfall looks like.  

Long story short, treat them as any other investor.  You are pitching them your experience and business plan.  If they like you and your plan, if they don't, they won't.  The best part is, since these are family, even if it isn't a good fit for you or them, since you have a relationship you can typically get honest feedback to help you improve your pitch as you continue to expand your investor network.