All Forum Posts by: Shafi Noss

Hi everyone,

I'm curious about people's thoughts on banking strategy, especially if you are doing multifamily syndication. Right now I use Wells Fargo, USAA, and Chase for a mix of personal and business accounts, but I'm thinking of consolidating all my accounts under one bank. Is this a good idea? Are there any banks favorable for real estate investors? What strategies do people use that they would recommend?

So I've spoken with this guy more... Operational responsibilities are part of the GP, he volunteered that without my bringing it up.

I'm certainly not committed to this project, or anything yet. For now I'll take a step back, talk to an attorney, and decide where to go from there. Thanks everyone. 

Good advice @Alina Trigub, and thanks to everyone @Brian Burke, @Ola Dantis, @John Corey, @Danny Randazzo. I'll study the laws more carefully. @Alina Trigub

Alright, there are a lot of warnings about this being unlawful, when I checked about this before, I heard raising money in exchange for a fee is unlawful, but raising money as a GP is not.

From Joe Fairless' Blog: https://joefairless.com/6-crea...

"Remember, if you are raising capital for a deal someone else acquired,
you have to join as a general partner, unless you have a Securities
License. Without this, raising money for deals you’re not on the General
Partnership side of is against the law."

I am joining as a general partner, so seems like this is lawful.

But looking more closely at Amy Wan's post, from @Jon Schwartz, it does seem like this would be transaction based compensation, and that is unlawful. So maybe I should steer clear of this, or join in on other GP duties, which I want to do anyway.

Yes, I agree with you @Brian Burke, this is something to be careful about. They already raised 1.5MM for this deal, and I believe its their 6th or 7th. But duly noted, I will check carefully about their experience.

@Mike Dymski, great list, thanks. I'll be sure to ask about each of those.

Still curious about how these rates compare to other deals out there if anyone has their perspective to lend. 

Hi everyone,

I've found several investors interested in apartment communities, about 720k worth. I've been talking with syndicators who offer GP membership in exchange for bringing some of the investment capital.

One person I've spoken with gave these stats

-2.2MM Raise

-20% GP reserved for capital raisers

-120k acquisition fee

-10% equity for GP

So, 100k raised is 1% of the GP

The deal will be cashflow-poor so most of the profit will be from acquisition fee and the sale, maybe an 8 year hold.

I basically trust these guys to be competent and honest, but I'm interested in what other people think. Is there anything else I should be thinking about?

Yeah, that's what it's all about. Great answer, really appreciate the specifics and detail. I think I'm following most of your advice--raising capital, niching, taking low fees on the first deal. I have a lot of time so I'd like to find someone to work for and learn from too, and I'll focus more on broker relationships and SEC laws, and check out those books you mentioned. Also I'd be interested to hear any of your tips on raising capital well, if you have any. Continued success with your own investing!

Hi everyone,

In books, podcasts, and from the pros, I hear the same thing, that MF investing is about finding money and finding deals. What does life look like for someone who specializes in each of these, are they compensated differently, what kind of skills does each role need to be successful?

Thanks for the answers everyone. Sounds like we're not a good fit for each other.

@Anthony Kelly thanks for the lead, I'll give Jeff a call. 

That's an interesting thought, @Sarah Cobey, I'm curious what you think the true risks are and why they're there.