All Forum Posts by: Jacob Blackett

Have you had a bad experience putting together a syndication? It's a very equitable way to structure the deal and especially if you're co-investing a significant amount you can keep a lot of the deal yourself, and complete control so it's very clean. If you're short capital, you'll have to give up a portion of the deal to whoever is bringing the shortfall, unless you get the seller carry or you have a wealthy & charitable friend who's bored with investing and just wants to hook you up 😉

 I have a guide I can share with you to help vet syndications. I invest both actively and passively in syndications. It's a great investment vehicle as long as you find the right people. Just pm me and I will share the guide - good luck!

Investing in syndications can be a great way to own real estate. I manage syndications and also invest in many other syndications so I see both sides of the coin. Feel free to PM me and I can share a guide to help you do your due diligence on any given investment opportunity that you're looking for! With all the good that can come, their certainly are deals that can go bad but in general if you do your homework and good due diligence then you can have some amazing outcomes. 

Like @Erik Hatch mentioned, if your investors will be completely passive then you'll need to learn about Syndication guidelines, Reg D being the most common. If you structure it in a way that your investors will have some involvement, like management rights e.g. approving expenses above a certain threshold, making buy/sell approvals, then you might look at a JV route which doesn't require filing an exemption with the SEC...
 

I'd check feasibility of building homes on the lot vs. apartment complex and also considering buying already built up multifamily. From my experience MF is much better for cash flow. Better loan terms and economies of scale that SF homes will always lack. I used to own about 150 SF rentals - I have sold about half of them, and continue to sell the rest. They will work out to good investments but compared to my MF holdings (about 1,100 units), they are incredibly more hands on and time intensive, and don't cash flow as well. (exception being my A class SF homes > those do really well as long as you have a good basis i.e. buy them at the right price and with low leverage, which can be extremely difficult)

Good luck! 

@James Wright you can definitely do this, and I have in the past. I used to syndication portfolio's of single family homes whereby I would acquire, renovate, and then put 10 homes in one LLC and sell 70% interest to investors in order to get my cash back. Rinse and repeat.

I'm now syndicating multifamily properties, and have raised the funds post-closing on more than one occasion. 

You can set the terms however you want - so long as your investors will be willing to invest :)

PM if you'd like to connect sometime to discuss further details, I just wrapped up my 18th syndication - happy to help where I can! - Jacob

You can get into some real estate syndications with as little as $20k... I have a guide that could help you evaluate opportunities, pm me and I can share it with you! 

@Kasey Libby If you're interested in being hands on, and since you're new to the game, you're ideal bet would be to JV with someone more experienced. Ideally, you could find someone who is experienced and willing to put in money 50/50 and share profits 50/50 (or close to it) depending upon responsibilities.

Another aspect would be to invest WITH experienced investors in a syndication. The benefits would be to offset risk by investing with an experienced group, along with less responsibilities since you'd be in a truly passive role. Cash on cash returns of 8% to 10% are pretty standard, then overall annualized returns of 15%+ when the property is eventually sold. 

Local PM companies, leasing companies, realtors, and investors would be your best bet. Seems like there's not but data if rentometer is pulling 8 comps in 10 mi radius... talk with a few people with market expertise. 

We've done a few different arrangements over a couple hundred flips, feel free to PM me and I can share the agreements.

One agreement gave us an option to pay them 30% APR - OR - 30% of the profit. The APR was good for short term deals, whereas the profit share was good for our deals that took longer. It was my choice of which measure was used once the property was sold.

I can also share the breakdown spreadsheet to determine the profit splits.

Good luck!