All Forum Posts by: Vincent E peters

@Vincent E peters that is great that you have found syndicators who are willing to partner with you on a deal. Since you are looking for deals it would probably be helpful if you could leverage those sponsors track record. It is worth asking the sponsors if you can use their name and mention you are partnering with them when speaking to brokers in their markets. Good luck and keep me updated!

@Vincent E peters I would say to get your foot in the door you should raise capital. As I saw someone mention above it is helpful to know your target audience. In your case starting with firemen is a good idea. You are on the right track by networking with Syndicators. While building a relationship it is a good call to see if you can join in a deal as a capital raiser (along with other tasks per SEC rules). This will get you into deals to see the inner workings and you can start to gain experience and reference that experience in the future when speaking with brokers and lenders. I would suggest not working on findings deals unless you have a broker willing to work with you because they generally like to work with individuals they know can close deals. There is plenty to work on but capital raise is the best starting point. If you want to hop on a call I am always happy to talk about real estate. Good luck!

I started in real estate with the goal of getting into syndication. On the way I have picked up 2 SFH that were great deals and will eventually be a source of seed money to get into bigger multi family units.

I bought these units with a passive money partner, and I am looking for more. (Deals and partners)

my feeling is that, although I want to get into big multifamily, I should still be looking out for smaller deals as stepping stones to help me scale while I learn the ropes. 

 So I would say, don't ignore smaller deals that come up on your path to big syndications. Not only will they help you financially, but you will learn a ton along the way. 

@Vincent E peters 1. Raising Capital and 2. Deal sourcing are probably the two most valuable things you can bring to a team. If I were you, I would pick one of those and focus on that while continuing to network and work on your UW skills.

Try to find a syndicator or team that you click with and once you have your value proposition set and ready to go, bring it to them and make it happen!

Best of luck to you!

@Vincent E peters

I wouldn’t try and force anything as one bad deal will set you back a decade.

Speaking truthfully I would not recommend doing a syndication after having one deal under your belt. A syndication is also running a company where you are paying investors returns and managing cash flow. You can’t hold too much cash but need to have enough. That balance along with dealing with investors, auditors etc. Is not simple task.

Also, when raising money people will ask how much have you made in real estate and how much do you have in the deal. If your response is I bought three rentals and have not made any money yet why would they invest in your offering. What is your differentiator from others

This is not meant to be a dig, but I hope people read this and understand real estate is a long game and you should tread lightly. It’s like someone getting a pilots license then wanting to go fly a commercial 757 after flying a single engine only.

@Vincent E peters

If I may offer a few suggestions……….

In my experience, it is difficult to “force” things to happen - rather one needs to network and create an environment where you bring value to others already in this space.

Even with syndications, syndicators need working capital for earnest money deposit, due diligence, and legal fees etc. With little or no track record in MF, it will take time for brokers to start taking you seriously. 

Bottom line, you will need to find partners - which brings us back to the question of how do you provide value to other presumably more experienced investors?

I would suggest being a good underwriter is NOT the first step - plenty of people can underwrite deals and good underwriters can be found and work on a affordable hourly basis. I’m not saying that underwriting is not important. I’m saying underwriting will NOT be the key to break into MF investment.

People break into MF space generally in one or two ways:

1. Find deals

Pick a market and start studying that market. Take a look at every deal that comes up in that market. Understand typical price per door, cap rates, expense ratios etc. Tour properties as they come on market. Figure out who the top brokers are in that market and build a relationship with them. LEARN your market so you KNOW what is a good deal. Underwriting is only as good as the data you input - without solid local market knowledge, underwriting is of little value. Stay top of mind with brokers.

2. Raise capital

Start talking to friends family and professional colleagues about investing especially multifamily.

By all means, spend time learning out to underwrite - but I would spend most of my energy out in the market learning that market and talking to investors.

Hope this helps.

The magic the answer to MF investing is NOT found in a spreadsheet.

The magic the answer to MF investing is local market knowledge and networking.

Assess your skills and your existing network. Determine where your strengths lie and where your time would be best spent. Focus on 2 or 3 markets at most and physically get to those markets OR start educating your existing network about the benefits of passive investing.

Hope this helps!

@Vincent E peters As @Jim Pellerin mentioned, having the ability to raise capital can be a game changer. Whether you source your own deal or partner with another syndicator that requires capital for their deal, capital is one of the key requirements and can provide you a better opportunity to get into a partnership. Talk about what you are doing with your friends, family, other firefighters, your old military buddies, and everyone else. 

One pieces of advice is that I wouldn't "force" things to happen. I would set the conditions such that you are prepared and can take action when the right opportunity comes along. When we force things we end up with the wrong deal or the wrong partnership, etc. 

Cheers,
Marcus

Go to syndication meet ups and go consistently. Make sure people recognize your face and know how serious you are

Start raising capital.