All Forum Posts by: Joseph Harris III

I agree with @Brock Mogensen. Do both. Im just starting my journey too and Im doing both.

Yes i want to sponsor the deal, but i will co-sponsor or co-GP the deal because im just starting out. I will bring in another sponsor with experience in asset management and raising capital 

I am a multifamily Syndicator looking to build a team and find my first deal. I am willing to JV, partner and collaborate with people as long as it is mutually beneficial to each of us.

Passive investing is when you become a limited partner in a syndication deal. You have no control and you do not manage the property. If you want control in a syndication, you must be the main sponsor or General Partner. The General Partnership team can be a group or multiple groups of people. You cannot do a syndication alone. You must have a team. If you dont want to use anyone else's money, syndication definitely isn't for you. Syndication is typically for larger deals 100+ Units, although sometimes, syndicators do raise capital for deals less than 100 units as well. If you just want to JV on deals around 20-30 units and want a majority of the deal, you would need to put up the majority of the money. If you have a high net worth, i would say just go get a bank loan and take down a 20-30 Unit deal yourself since you want control

Good question. What you are referring to is multifamily syndication. In these types of deals, the deal sponsor or general partner syndicates the deal meaning they raise money from limited partners that fund their deal. So, a syndicator pools money from various sources to fund large apartment buildings. Most deals of a larger size will also need bank financing. So, syndicators use bank financing in conjunction with the private lenders called LPs or limited partners. To find multifamily Syndicators is easy. Just network and build relationships so you can form a team. There are groups you can join and virtual networking events to meet other syndicators who are even sometimes LPs on deals. The key for you would be to find an off market property. Don't use realtors that list there properties because syndicators want off market properties and if you can find one without a realtor by using Costar, Reonomy or Prospect Now software, that that is even better. Also these deals are governed by the SEC if you pool money so you definitely need a lawyer. If you just want to joint venture, that is the same way. Network to find joint venture partners to take down larger deals. There are multifamily  meetups virtually every week and people nationwide are in these groups and attend these meetups.

@Jesse LeBlanc yes you are correct. It is the EMD for wholesale deals, but like you said, you never know who is out there. Thank you for the correction because EMD and down payment are definitely two different things.

There are people that you can reach out to that actually have a whole business model around lending out down payments. Some people call it gator lending. Maybe someone will respond to this... if not, google "gator lending." See what comes up.

@Hollee Mills Being licensed as an agent/broker is not required to invest in real estate, but it does have its advantages. Since you fix and flip, you can list your own houses for sell on the MLS and get paid a commission. That would be one advantage for you. Another advantage would be if you are part of a nationwide network of agents/brokers, then you can refer business to other agents/brokers and get paid a 25% referral fee.

@Logan French everything @Alex Breshears stated is spot on. I would advise against franctionalized notes because of SEC laws and regulations, but I would definitely use one paerson in 1st position and another person in 2nd position. You may even put someone in 3rd position if they agree to it. This way, which is the third way @Alex Breshears listed, is probably the most common way that most investors structure their capital raise.

@Curtis Starck yes it is true, but like @Joe Villeneuve stated, you need to study real estate investing more before you get started. You should try to partner with a wholesaler first before you try to raise money for a deal that you dont even know how to evaluate yet. Go on youtube and follow Pace Morby and Brent Daniels to learn about wholesaling