Looking for Multi family syndication expert for investment help

Syndications & Passive Real Estate Investing
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Looking for Multi family syndication expert for investment help

Jeff Leonard
Member since 2023 · 1 post · 1 vote

Hey everyone- I am so very interested in multi family syndication - I read Hands off investor- very insightful- BUT being a novice I do not feel qualified to break down all the different multi family firms/websites and their myriad offerings.. does anyone know of a fee based or hourly rated multi family syndication advisor who can help guide beginners in everything from best deals, expectations, etc? I’m looking for someone who we can trust who has vetted hundreds of these deals and has a solid reputation in the multi family syndication community but is unbiased (ie it’s not their firm offering the deals)

Any help with a nam le or a firm etc would be appreciated 

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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2y

You should first determine what is most important to you (tax treatment, hold period, cash flow etc.), as this is a personal preference and may differ depending on the individual. This allows you to narrow down on the syndications that are aligned with your objectives. From there you can vet those that are within the suitable parameters. I see many spend time vetting deals without any real direction. Once you narrow in on the syndications that are properly aligned you can vet the particular syndications. This means both the deal and the sponsor. For the sponsor you should be looking at the sponsors track record, are they investing in the deal personally or are they relying on a co-gp to fund their equity portion? (this can be a red flag, especially if the equity amount is small) also are they personally serving as the guarantor or are they paying a fee for someone else to serve in this capacity? It's important to understand the role the sponsor is playing. As for the deal itself, this means reviewing entitlements, banks financing approvals, the operating agreement etc.   There's a lot that goes into vetting a syndication and it's important to be thorough with your review. Furthermore a syndication that may be a good fit for one many not be a good fit for someone else.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Jeff Leonard

    I would recommend using a broker dealer

    I just had a podcast with one yesterday who does exactly this

    Why do I say a broker dealer ? Because they get paid by the sponsor (not you) but have a fiduciary responsibility to you

    Yes they get paid by the sponsor but many will have multiple offerings they have already underwritten so it’s not just one person they push.

    There are of course pros and cons with this but for someone who doesn’t have time or experience it’s not a bad idea

    7e investments53 Reviews
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    0Reply
  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    2y

    @Jeff Leonard - There are a ton of multifamily investor groups out there. They tend to be pretty expensive though... like $20-50K. If you do take action and follow their steps, you can turn that into a lot of wealth but it all depends on if you follow through with the learnings.

    One program that I heard good things about is Jake and Gino. I've met multiple successful syndicators that got their start in this program. 

    The most cost efficient method would be to find a local syndicator in your area and work for them or go out of your way to provide immense value and expect nothing in return. If you help them enough and provide them with enough value, they will feel a need to help. That is how I found my first mentor in the syndication space. 

    Best of luck on your success! 

    P.S. My biggerpockets rookie podcast just launched today and I talk about the challenges of doing my first syndication. You might find value in it. 

    [email protected]781-964-3200Podcast Guest on Show 69 Doors from ONE Real Estate Deal Using Other People’s Money
    1Reply
  • Lucia Rushton
    Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
    2y

    @Chris Seveney do you have a link to that podcast?

    0Reply
  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    2y

    @Jeff Leonard, to be clear, the groups that Andrew noted are more catered to teaching would be syndicators the ropes of investing in real estate and raising money from people like you.  Investment groups do exist for LPs and are typically free.

    Check out Left Field Investors as one option.  506 Investors Club is another (more reviews than education, I believe).  

    Also, just be ready to have a lot of calls.  Just like hiring a contractor for your home or an attorney for whatever reason, you often don't want to just hire the first person you talk to.  Talk to several, if not dozens, before you make an investment.  Each group will have its own ways of doing deals.

    As you note, there is a lot to consider.  I will note that no matter who you talk to: broker dealer, syndication company, or investor mastermind group; there will be a bias.  It is inevitable.  But you can often cut through some of that, i.e. I ask all my potential sponsors (and particularly the people I talk to the group, whether founder or Investor Relations person): do you invest in these deals, or this deal in particular?  If so, are you in the same share class as me?  Have you done other LP deals?  How long have you been with company/in industry?  What drew you to this company/deal?

    I like to talk to peers versus salesman.  

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Lucia Rushton:

    @Chris Seveney do you have a link to that podcast?


     It will be out in a few weeks, we just recorded yesterday. It was with Brad Shepherd with sugarhouse investments. Note this is not an endorsement of their investment offerings. 

    7e investments53 Reviews
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  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    2y

    @Jeff Leonard - Good point, I did not realize he was coming from the lense of a LP and not wanna be GP. 

    [email protected]781-964-3200Podcast Guest on Show 69 Doors from ONE Real Estate Deal Using Other People’s Money
    0Reply
  • Lucia Rushton
    Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Lucia Rushton:

    @Chris Seveney do you have a link to that podcast?


     It will be out in a few weeks, we just recorded yesterday. It was with Brad Shepherd with sugarhouse investments. Note this is not an endorsement of their investment offerings. 


     totally, just want to hear it, thank you.

    0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2y

    You should first determine what is most important to you (tax treatment, hold period, cash flow etc.), as this is a personal preference and may differ depending on the individual. This allows you to narrow down on the syndications that are aligned with your objectives. From there you can vet those that are within the suitable parameters. I see many spend time vetting deals without any real direction. Once you narrow in on the syndications that are properly aligned you can vet the particular syndications. This means both the deal and the sponsor. For the sponsor you should be looking at the sponsors track record, are they investing in the deal personally or are they relying on a co-gp to fund their equity portion? (this can be a red flag, especially if the equity amount is small) also are they personally serving as the guarantor or are they paying a fee for someone else to serve in this capacity? It's important to understand the role the sponsor is playing. As for the deal itself, this means reviewing entitlements, banks financing approvals, the operating agreement etc.   There's a lot that goes into vetting a syndication and it's important to be thorough with your review. Furthermore a syndication that may be a good fit for one many not be a good fit for someone else.

    [email protected]
    1Reply
  • Danny RandazzoPro Member
    Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
    2y

    @Jeff Leonard if you are interested my business partner @Dan Handford wrote an article about 8 red flags to passive investing. If you’d like the link just inbox message me and I’ll share

    0Reply
  • Danny RandazzoPro Member
    Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
    2y

    @Evan Polaski great insights. You are a wealth of investing knowledge too!

    0Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    2y

    I think you should do some research - What are you bullish on?
    Apartment complexes, Data Storage, Mobile home parks?
    Are you bullish on a specific area in the United States(Southwest, West Coast, etc)

    Then once you identified what you want to invest in, there may be 5-10 sponsors specializing in what you want to invest in.
    Follow them on social media, have a discussion with their investor relations team, research how investors have said about their performance/communications on past deals. You can do this by going into google / reddit and typing their fund names.

    Once you researched them for a while, I think it is okay to invest with them.
    You may also want to consider diversifying your assets so they are all not with one sponsor.

    Best of luck

    [email protected]917-280-8544
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