how to get co-GP opportunities as capital partner in multifamily?

[Johnie Hsu]

hi all, my name is Johnie from New York. I have been selling real estate here in NYC as a broker for 9 yrs and I have a network of potential investors that I can raise capital from for multifamily deals. I'm eager to break into this apartment investing business. I wonder if I can get co-GP opportunities if I were to be able to help raise capital? It seems like established multifamily investors already have an extensive network of investors in their pipeline. Any suggestions on how I can provide enough value to these established investors so I can get involved in their next projects and start gaining hands on experience on multifamily acquisition side of business?

Any input would be greatly appreciated.

[Justin Moy]

The good news is since you've been a successful broker for 9 years, you already know how to do this! 

It's about prospecting. Except instead of prospecting homeowners in your farm you're prospecting operators. Make contacts with as many operators as you can. Tell them what you'd like to do, I highly doubt anybody will flatout turn you away, but they also won't jump on the opportunity to bring you on. 

First time capital raisers almost never raise as much cash as they feel they can, so it's likely they'll be hesitant to bring on someone new who may not be reliable, but you should have a long term follow up strategy for these operators you want to work with, continue building the relationship, maybe invest in a few of their deals yourself so you can vet them, their process, and go from just someone who wants a slice of the GP to someone who is actually one of their investors.