All Forum Posts by: Jonathan New

Welcome aboard.  There are several meetups that go on around here that would be a great place for you to populate your buyers list.  Happy hunting!

@Chris Mason that does sound like some awful advice for that particular individual.  I generally like GC's grandiose ideas and persona, but his ideas on personal life style is where he loses me (i.e. I am 100% against renting my primary home).  

@Alec McGinn I am getting into syndication myself this year with some partners who also have no experience with the strategy.  However, we are hedging our inexperience by bringing in outside partners to bring clout to the table and to help raise capital, which are skills that we are building upon.  I think that there really is no limit to what size deal you can take down if you realise your professional limitations and pull together a team that solves those limitations in the eyes of a seller, broker, bank, lawyer, LP investors, etc.   You may have to give up a huge portion of the KP pie, but you'll be in the game taking down deals that will open doors for you down the line.  That's our starting point for going big.  

Several fantastic responses by several knowledgable heavy weights.  Although equally tough with different strategy cons, you could also partner up with someone who already has investor backing while you build up your own backing.  You'd be bringing in deal flow to satiate that partner's idle money by putting it to work for the investors.  

You can also do what I am seeking to do, and partner up with someone more experienced.  You do the work, and they are there as the credibility/mentorship with not much at risk except their time.  They mentor and take a piece of the KP pie.  Less profit for you on the first deal, but you're in the game and have obtained credibility for yourself for future deals - deals that could find you being the mentor taking a piece of the KP pie for little personal risk, while also helping another blossoming investor such as yourself to enter the game. 

Welcome, Breon. I do rehabs for flips or BRRRR. PM me if you like.

Thanks all for the responses.  I am sure that my multi-family in-experience is absolutely beeming off the screen right now, which is why we are partnering up with more experienced investors for our first deal or two.  

@Brian Burke Thanks for help.  We certainly are doing precisely as you suggested in raising our own capital first.  We have access to a couple of off-market deals, so getting access to extra capital to make bigger deals possible (even at a cost to our GP position) or in the event that more-than-anticipated amounts of verbally committed investors back out is a concept that we are exploring.  

@Dan Handford Thanks for that and for the DM.  I'll be scheduling a call shortly.

@Alina Trigub That's very helpful advice that I had not thought of, but it makes perfect sense in the regulated world of syndication.  

@Richard Sherman We will be raising the downpayment, syndication fee, and repair budget.  We have a local bank for the financing, but they don't do commercial loans greater than $5M, so we are vetting other lenders at this time.  Ah, the problems of breaking into new strategies.

My partners and I are scouring our contacts and networking to piece together verbal capital investments for POF in order to submit LOI's.

My question for the BP world, is are there companies that provide the capital in exchange for equity positions?  If so, I’d love recommendations, and what equity position is typical for bringing them in as a KP?  Thanks in advance!

My partners and I are networking into bringing in experienced and/or high net worth KPs in exchange for equity positions on deals that we find, form, and manage through the exit strategy (which obviously depends on the deal).  What are some of your must-attend conferences that are attract specifically MF syndicators, capital raisers, and passive investors?  Many thanks, BP!  

Some constructive advice in here.  Anyone who can answer, what are typical equity positions that HNW backers seek to attain in their large MF deals?  

So many nay-sayers out there, which is obvious in all of these elitist "newby's don't belong" posts.  Truth of the matter is that even a newbie can install the correct systems and surround themselves with the right people to make a deal successful.  If you surround yourself with MF experienced, high net worth, individual market experienced, and capital partners who all want a piece of the deal, there really is a great deal of risk mitigation that should maximize chances success.  Listen to the nay-sayers' points, mitigate the risks that they point out, but don't let them talk you out of the game that they want to dominate.  

I am in a similar boat.  I'm partnering up with a couple of people, and while we have landlord and value add experience, it's all in SF - no MF experience.  We're bringing in deal-specific partners to guide us through our first few deals for a slice of the pie.  We're looking at bigger deals as well, but I don't think that we are premature in scope of investment that we are taking on because of the mentorship and team backing in the process.  We will have to share the returns, but we'll be in the game with experience.