All Forum Posts by: Paul Cessarini

We’ve been in the real estate business for over 15 years, but just have started syndication in the last year. I don’t think you can justify making rash comments about something you have not a clear understanding of.

I second @Taylor L. and read Brian Burke’s book about investing passively. Vet the sponsor and make sure they have the experience needed. Dig into the pro-formats and make sure they are conservative. It’s very easy to change a couple numbers on excel to make the deal work on paper, but does it work on the ground. Ask to talk to previous investors, see if they are paying on time, every time. I think what everyone is saying is that it is imperative you trust the sponsor and their ability to perform.

Thank you @AJ Shepard for helpful feedback. Sponsor that I am considering investing has an experience working on Real estate investing for over 10 years but they started syndication about a year ago. Being a noob in RE investing, syndication investing seemed to be a great idea while I learn more about investing on a triplex on my own ( hopefully soon). I guess I need to have a thorough review of their number and make sure the returns are not too aggressive. Thanks for the tips on talking to previous investor, that would probably provide a lot of information about the sponsors.

Wondering what's the technique to find great sponsors who have a decent track record? Is it just about personal connection with local meetup /social media ?

Meetups, webinars, BP, podcasts, etc. Those are just the way to make the initial introduction. You still need to do due diligence on the team & deal.

Thanks @Taylor L!!

0 Votes

Originally posted by @AJ Shepard:

@Steve Morris

0 Votes

Originally posted by @Taylor L.:

@Brian Burke's book is a great place to start.

Personally I would never invest 50% of what I have in any one passive deal, no matter how great it looked. As a passive investor you need to study the market too and not just take the sponsor's word for it. Learn the basics of how to check the sponsor's math and see how their assumptions impact your projected returns. 1% monthly cash flow is a pretty strong projection at this point in the cycle, so it needs to be backed up with equally strong evidence.

Protip 1: Everyone says they underwrite conservatively. Everyone. The proof is in the pudding, and it is on you to check their math and see if you agree with it or not.

Protip 2: there will be more passive syndication investment opportunities down the road. You do not need to feel FOMO if you pass on this deal, because this team will do more deals and they are not the only game in town.

Thank you for your insight on it. I truly appreciate that. I will check out @Brian Burke's book to get started.

0 Votes

I am just getting started with RE investment, have a general concept of it after going through lots of reading. My plan is to eventually get into triplex/multi unit investment, but it's going to take some time. Recently I came across a Syndication deal which has a potential of 1% cashflow every month and some profit sharing after the hold period of 5 year. These people are fairly new ( just over 1 year) but have a great investment deals and have studied the market thoroughly based on the slides they send me. I am considering to invest 50% of what I have, so I can have a passive cash flow while I prepare to get started in RE investment on my own. Is it a good strategy?

Any tips on the syndication investment is greatly appreciated. TIA

0 Votes

All Forum Posts by: Paul Cessarini

Paul Cessarini has started 1 posts and replied 4 times.

Post: Tips on Syndication Investment for beginner RE investor??

Post: Tips on Syndication Investment for beginner RE investor??

Post: Tips on Syndication Investment for beginner RE investor??

Post: Tips on Syndication Investment for beginner RE investor??