All Forum Posts by: Spencer Gray

@Chad King Where are you located? We'll have openings for Fall/Winter interns in Indianapolis shortly. Interns get hands on experience inside an active syndication / PE firm, work on deals, see how it all works, etc. DM me for more info. 

Some crime isn't a major issue, but if PMs won't take the deal that's a massive red flag. 

The $500k cap has been proposed, I doubt it will happen - there's just not the political will. Democrats own real estate too! 

@William Costello See you tomorrow! 

Should be a great event. 

Co Star is great. Yardi has some great metrics, but co-star is the gold standard. 

I would make sure there is significant upside for that much work for only 6 units. 

It's not necessarily much different from a "typical" syndication. However, unlike a single asset syndication, capital commitments are often made in advance of projects being identified and typically the mandate/goal of the fund is to acquire multiple assets, although the strategy can vary and a fund could invest in a single asset.

Having a fund gives the operator a great advantage as they have the "cash in the bank" and are much more likely to close than a syndicator that has to race to raise funds between a project going under contract and closing (usually 45-90 days). 

Sometimes funds can have higher fees, but not necessarily. Funds can be a great way of gaining instant diversification. If you trust the sponsor and the strategy aligns with your goals and objectives they can be a great investment vehicle. 

Some like to build their own portfolios of single asset syndications, it can take more time but there is more control over individual portfolio construction. 

Why wait until September? I would start making offers now while you build your team. Chances are it's going to take several months of making offer's and you won't necessarily be taken seriously at first (no track record), but if you're making offers you'll have a much better sense of the market by the time you get a deal under contract and your team is built. 

I would ask brokers/agents for referrals to lenders/PMs - they should know and if they don't I would look for a new agent/broker. 

I would also think about timing, it's never fun to attempt to close during the holidays when no one wants to work! 

Happy investing!

This is one of the BEST times to invest in recent history. Just be smart, dynamic, and prepared. 

There are no rules, but as many other have mentioned 10% of the equity is a benchmark for a co-investment. That contribution could be derived from cash, a rolled in acquisition fee, or a contribution from a member of the GP that is more of a strategic capital partner providing a co-investment and perhaps a balance sheet/guarantee. 

The only thing a co-investment can tell you is how deep the pockets of at least a member the GP are and possibly how confident they are in the project if they are contributing more than the acquisition fee. 

That being said a great sponsor may be marketing a great deal and may have just co-invested in their last 5 deals and could be tapped out and need the acquisition fee to pay back pursuit costs, back end expenses, and to cover future expenses of finding the next deal. A low, or no co-investment isn't necessarily a major concern but is something that needs to be explored more. 

I'm saying that even though we now co-invest 10-25% of the equity in our syndicated projects.