Syndicate - Where to learn about starting/doing?

[Zach Schwarzmiller]

Hello BP Community. I started in the commercial real estate world as a broker in Seattle area in 2012, which brought me to start investing in 2013. I started buying 2-4 units solo, then branched out with LLC and TIC partnerships. I've been looking to take my TIC ventures to a new level with a syndicate. I have multiple partners with large amounts of money seeking passive investment opportunities. I know the generics of a syndicate, but not much about the specifics. Where would I go to learn more about how to start structuring a syndicate? I would of course get my attorney and accountant involved, but I am still a bit before that on my personal knowledge of how they function. I am also not sure how to the debt structure works with a syndicate, would it be similar to how I secure debt with my TIC structures (all partners are on debt, for the % they own) or are most of you doing this differently? Any resources would be greatly appreciated. Thank You!

[Michael Le]

Hi Zach,

I would start out by reading some books. A couple of suggestions.

The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges

It's a Whole New Business!: The how-to book of syndicated investment real estate by Gene Trowbridge Esq.

I would also listen to the many great podcasts out there - Rod Khlief, Michael Blank, Old Capital Lending, Wheelbarrow Profits, etc.

And then I would suggest that you get a mentor/coach to help you. As anti-guru BP is, this would be one of the real estate niches I think you should very strongly consider a mentor. You can try to find someone already doing it and form a relationship with them. This is the harder and slower way. Or you could pay for a coach/mentor.