All Forum Posts by: Brock Mogensen

There are tons of great syndicators out there. I agree on avoiding the big fundraising platforms..can find better deals directly with the operator.

I would start with answering the following questions:

Do you want stable cashflow or less cashflow with greater upside potential?

Do you have a preference in what market the asset is located?

Do you have a preference on asset class (multifamily, industrial, self storage, etc.)

Are you accredited?

How much capital are you looking to invest?

These are all questions that will narrow down which syndiacators to talk to.

What is the exit cap rate? 

You want the exit cap rate to be higher than what the entry/buy cap rate is

If it isn't, that will tell you everything you need to know about how conservative the underwriting is 

False. Raising capital is never easy, no matter how good the deal is.

That being said, an attractive deal will certainly make the capital raise "easier".

While you are searching for deals you want to simultaneously be building you investor network.

Starting with friends and family is generally the best place to start.

My suggestion would be to partner with another GP that is a strong operator and has a presence in your target market. Your finance/PE background is something lots of syndicators are looking for in a partner. If you can bring that "Institutional Quality" to a partnership, that holds a lot of value.

Investing as an LP in syndications/funds is a great way to build a passive real estate portfolio. That being said, certainly need to understand how to conduct DD on the syndicator and the deal.

I have a list of things to review when investing in syndications I can send to you. I'll shoot you a DM

All the above.

Brokers/Agent relationships, cold calling, door knocking, mailers, networking events, BP..finding good deals is tough.

Just sent you an email

Yes, equity is calculated based on their proportionate investment of the LP equity.

IRR and other metric calculations are generally calculated based on the LP level. Unless you are offering different tranches/return structures for each LP. The return % for each investor should be the same.

General industry norm is if you are a GP on the deal, you can claim the entire asset on your AUM. That being said, your allocation to net worth/PFS should be calculated based on shares you own in the deal.

On top of the NNN/CAM allocation you also want to factor in annual rent escalators and vacancy assumptions. Generally you want to build out your underwriting on a 10 year proforma. NNN leases generally have annual rent escalators, and those can vary by lease. If there is multiple tenants then there is going to be different escalators, etc. Additionally you want to model out a vacancy period at the end of each lease term, to be conservative. 6-12 month vacancy factor is common. Model that out for each individual lease, if there is multiple tenants in the property.

Underwriting a multi-tenant NNN deal is not as straight forward as multifamily..in my opinion. And the best way to underwrite these deals is in an Excel model. Happy to send over my model, which is geared towards syndication, shoot me a DM