Any platform or website for selling your Syndication Equity?

Question

Does anyone know if there is a website or platform that connects people looking to invest in a syndications and those that may want to sell their shares?

I own equity in two different syndications, one managed by Brian Burke's (Hands-off Investor) Praxis and another is managed by Robert Kiyosaki's (Rich Dad Poor Dad) property manager MC Companies.  They are very similar investments and unfortunately due to unforeseen circumstances I need to sell one of these investments.  I was looking for a platform where I can list the investments for sale but I can only find sites that allow you to sell stock options in private companies but I can't find any that allow you to sell share in syndications (LLCs).

Evan Polaski · Answer

@Chris M., I believe Paul's comment was more so a call out of Lane not a reflection of Praxis or MC Companies.

While I am not in a position to buy positions, I believe on your listing thread, it would be very helpful to share at least purchase price, current T12 NOI, and loan balance for both portfolios you are looking to sell.

While I am sure you are open to sharing all that for interested buyers, I would imagine most people will want to see those just to a a very back of napkin: "is there equity left?" calculation before diving deeper.

Take it or leave it, but it may save you some time with "tire kickers" reaching out to see all your info, just to come back with "I will pay your $5-10k" for your $100k investment.

Chris Seveney · Answer

@Chris M.

Send me a PM I am accredited and have some $ in a sdira that I need to put to work - so I would need to know leverage info to see if worth it.

Chris M. · Answer

Thanks - I have already looked into this and both my investments allow you to sell, neither allow you to "cash out". One has a provision I have to offer it to the other investors first but I have already done this and now I am free and clear to sell it to another party.

Bummer there is no platform for this, seems like a good idea for a startup!

I guess my classified post here will have to do:

https://www.biggerpockets.com/forums/517/topics/1194691-equi...

Chris Seveney · Answer

@Chris Marzilli

Most offerings do not allow to sell without permission from the sponsor - so I would suggest you get permission.

Did you also ask the sponsor if you could cash out? Some allow it but have penalties.

Unfortunately there is no platform for this type of activity so you may want to reach out to friends and family or someone who is invested in the fund and wants to increase their position

Chris M. · Answer

UPDATE: THIS DOES EXIST!

I made a similar post on Reddit and someone referred me to a platform where you can offer your syndication shares for purchase: https://www.lpshares.com/

Chris M. · Answer

Thanks for your suggestions Evan, I will take them under advisement.  Happy to share all information with any interested party even if they are kicking the tires.

Chris M. · Answer

@Lane Kawaoka Dude you already posted this on my this thread and on a seperate thread I created. Basically the same post three times. Then you found me on LinkedIn and messaged me the same thing - stalker much?  Cool it please, I never asked for your generic assignment of my portfolio.

Chris M. · Answer

Interesting thread but to be 100% clear none of my Syndication leads have gone silent. I receive regular updates from them like clockwork and in fact Brian Burk from Praxis is one of my Syndication leads and he posted on that thread.  I have been happy with both of these investments but I am just in a tough spot.  It's not them, its me - type of situation.

Paul Azad · Answer

Good discussion on this topic here:

Lane Kawaoka · Answer

Reposting my response from that other thread you had here again:

Going to say this be great care as it is emotionally difficult to process, speaking from experience.

Properties bought in 2021 are worth about 30% less now. The market has corrected, and unfortunately, this means that the value of your investment has taken a hit.

The main issue is that these properties were purchased at a high basis, meaning you bought when prices were inflated.

Another thing to consider is your loan. If it’s coming due soon, refinancing could be tough. Banks have tightened their lending standards, and where they used to offer 75-80% loan-to-value ratios, now they’re only offering 55-65%. This could mean higher monthly payments or even the need to bring additional cash to the table.

It's a tough situation because these kinds of deals, especially ones from 2021, are facing what we call the “kiss of death.” They just weren’t bought at the right time, and the market hasn’t recovered enough to bring those values back up.

It really has nothing to do with operations of the asset. Its simple what is the BOVs and where is the senior debt.

Any platform or website for selling your Syndication Equity?

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