Let’s find syndicators… There are so many different things to invest in. But a good number of investors who hold well-paying careers or operate successful businesses, pick being able to invest with multifamily syndicators. If you are one of those people, you are likely to have already found some sponsors, or you need help connecting with some. I hope to help you with the latter.
There are so many ways to meet syndicators, especially with the increasing number of them with an online presence. I have put together 4 ways you can start finding multifamily syndicators. Remember: You’ve got to do the work, but with this guide and a little effort on your part, you should be set for some time to come. By the way, make sure you have read the article below, as it gives you a reference for interviewing your prospects.
How to Pick a Syndicator to Invest with Them Directly – Ask the Right Questions
YouTube Channels
If you do not want to be inundated with ideas and prospective syndicators, do not do this one. Ha ha ha. I’m joking of course. If you go to YouTube and type real estate syndication into the search bar, and then filter the results by channel, you will get a few hundred results. Type in real estate syndication multifamily to further refine the results and you should get about a hundred results. You get the idea. Watch some of the videos on each channel, or look at the playlists, to see if you want to move forward with any of these. An advantage of doing this will be that you will learn a lot about multifamily passive investing from different perspectives.
As you find some channels that have presenters or guests that you like, it should be easy to visit the associated websites or get contact info. To get you started, I have listed some of the channels I like to watch.
Lone Star Capital – with Rob Beardsley
Best Real Estate Investing Advice Ever Show – with Joe Fairless
The Real Estate Syndication Show – with Whitney Sewell
REady2Scale: Multifamily Investing – with Ellie Perlman
Podcasts
One of the fastest-growing forms of communication is the podcast. Since they do not rely on attention with the eyes like video does, people love to listen to podcasts as they are exercising and driving. They are a great way to learn about an almost endless variety of topics… and find syndicators.
For this exercise, I would like you to go to your favorite podcast service, like Stitcher, Spotify, Google Podcasts, or Apple Podcasts, and type real estate syndication into the search bar. You will be presented with many choices with descriptions that should help you hone in on some great channels to listen to. Like YouTube above, this is a lead source for you to follow up with the hosts or their guests.
Real Estate Group Meetups and Meetings
More and more conferences, meetings, real estate investment clubs and meetups are being held online these days. This can make it a lot easier for those of us who want to invest across the country, but it also invites too many event choices than is practical to follow up. But the numbers are in your favor, so don’t be daunted.
Meetup is one of the most well-known hubs for meetings in your area. In their own words, they say that “it is a platform for finding and building local communities. People use Meetup to meet new people, learn new things, find support, get out of their comfort zones, and pursue their passions, together.” This might be an awesome resource to help you find syndicators.
But that’s not the only resource for meetings. Do a Google search for real estate clubs along with your city or state, and you should get some of the most well-established clubs and organizations in your area.
Attend some of the meetings and events. Talk to people and ask about investing in syndications. Chances are that you will be able to amass some really good syndicator leads.
Word of Mouth – Ask Your Friends and Network
Since you are a highly-paid professional, you likely have coworkers or friends who also have the same capital preservation goals that you do. Leverage this. Ask each of your friends and colleagues if they have invested in real estate passively through a syndication. Do this with some of your LinkedIn connections as well.
I’m going to conservatively bet that at least 10% of all the people you contact will be able to give you a lead on a syndicator to follow up with. While getting syndicators highly recommended to you, don’t forget to ask who NOT to invest with as you find syndicators. This information could be really valuable to you someday.
Keep a list of all your friends and the syndicators they suggest. Go back to this list periodically, at least once per year, and see if there are any new syndicators they are working with.
Once you have found at least one syndicator and have gotten to know, like and trust the team, you should be asking for references, and the syndicator should be able to supply a few. These should be investors who have participated in previous deals. When you reach out to them, by phone preferably, you should be asking them for other syndicators they use to keep their funds working.
Crowdfunding Sites
This part is a bonus, as I have already done most of the initial work for you. Crowdfunding has democratized investing in areas, such as large real estate projects, that were only available to the wealthy or well connected. One of the biggest benefits of using a crowdfunding platform is that you get to leverage the platform’s due diligence resources as you find syndicators. There will usually be a small tradeoff or fee for this privilege, but this allows you to be even more passive than before. In other words, the platforms are doing the work, not you. See:
How Real Estate Crowdfunding is Making it Easier to Passively Invest in Syndications
Google Search
This might be one of the poorest ways to find syndicators, but it could help narrow the field, especially by geography. I’m not even going to begin to tell you what to search for because I think you already know or can figure it out. The important thing to note is to do your homework with each of the syndication and capital management teams. Interview them. Scrutinize everything. Ask for past examples or case studies.
Forums
BiggerPockets is one of the largest online forums addressing all aspects of investing in real estate. You do not need to purchase a membership (unless you want to) to see all the advice and discussions on the site. Make sure you have your BS detector engaged because I have seen a few bad apples taking advantage of people. But for the most part, this is a great resource.
Discussion and message boards within Facebook can also lead you in the right direction in finding sponsors. Groups like REtipster, BiggerPockets (yes they have a Facebook presence as well), and InvestFourMore can certainly get you connected with people who might have some syndicator references for you. All you have to do is ask.
SEC Website
This is a great way to find syndicators who have actually syndicated something. The advanced search function of the EDGAR database gives you access to the full text of electronic filings since 2001. For the SEC link and instructions on what to do there, go to:
Finding Sponsors by Looking at SEC Filings – a Tutorial
Homework Time
Now that you see what resources you have available to you at your fingertips, there is no way you can tell me “I don’t know how.” I want you to make a list of at least 30 syndicators, and then reach out to each and every one of them. Don’t be nervous. Sit up straight and get it done. These have been some of the most fun conversations I have ever had. I always look forward to talking with sponsors I don’t know. Just remember that they are people too, and they succeed if you succeed.