Here we go!

When we first started looking at investing in real estate, we were new to the asset class. Like many, we considered single-family homes. That’s where many of us start because we can easily wrap your head around the concept. After all, most of us have been renters at one point or another in our lives — and during that time almost all of us thought to ourselves – it would be better to be on the other side of that equation.

After looking at numerous properties, we realized that unless we struck gold and found a really great deal on a house, we weren’t going to get a decent return on our investment. If we did find a deal, we would have to do it 10 more times, 50 more times, likely 100 more times to get the cash flow to a level that would replace our combined salaries.

We came together to pool our resources and start looking for larger deals that would make more economic sense. We then decided to syndicate the deals we found to get our friends and family access to this market. Along the way, we’ve met — and now partnered with — some veterans of the multifamily industry that bring a multi-decade career of experience with them. Our extended team has been through several market cycles and we are excited to be looking for our next deal in 2023.

We’ve put together some steps that can help guide you if you’re trying to get started in this real estate market.

Step 1: Get Educated

At any level, investing in real estate is a business that requires a certain level of know-how when it comes to analyzing, acquiring, and managing a real estate asset. Multifamily real estate in particular requires several additional layers of understanding as compared to single family homes. It is essential to have a thorough understanding of the markets, industry, laws, and regulations that govern it. Consider taking courses, attending workshops, and consulting with industry professionals to gain the necessary knowledge and skills.

Step 2: Develop a Business Plan

Like the saying goes, you won’t arrive where you want to be if you don’t have a roadmap to get there. Starting a multifamily real estate syndication business can be a lucrative and rewarding venture, but it requires careful planning and execution to be successful. A multifamily real estate syndication is a business model where multiple investors pool their resources together to purchase and manage a large multifamily property, such as an apartment complex. The goal is to generate steady cash flow and long-term appreciation for all investors involved.

A solid business plan is the foundation of any successful business, and a multifamily real estate syndication is no exception. This plan should outline your business goals, target market, competition, and your unique value proposition. It should also include a comprehensive financial analysis of the potential returns, costs, and risks involved. This will help you to determine the feasibility of the project and ensure that you have a clear roadmap for success.

Step 3: Build a Strong Network

Networking is crucial in the real estate industry, and this is especially true for multifamily real estate syndication. Building relationships with real estate agents, brokers, property managers, and other industry professionals will provide you with valuable insight and help you to identify potential deals. Additionally, connecting with other investors and building a network of trusted partners will help you to secure funding for future projects.

Step 4: Secure Funding

Multifamily real estate syndication projects require significant capital, and it is important to have a solid plan for securing funding. This can include a combination of traditional loans, equity investments from individual investors, and crowdfunding. It is also important to have a clear understanding of the various funding options available and the pros and cons of each, so that you can choose the best fit for your business.

Step 5: Identify and Evaluate Potential Deals

Once you have the necessary funding in place, it's time to start evaluating potential deals. This involves researching the local real estate market, identifying properties that meet your criteria, and conducting due diligence to assess the property's financial performance, potential for cash flow, and long-term appreciation. Consider working with a real estate agent or broker to help you find and evaluate potential deals.

Step 6: Close the Deal and Manage the Property

Once you have identified and evaluated a potential property, it's time to close the deal. This involves negotiating the terms of the purchase and coordinating the closing process with all parties involved. Once the property is in your possession, it is important to have a solid plan in place for property management, including hiring a property manager, setting up systems for rent collection and maintenance, and monitoring the financial performance of the property.

Starting a multifamily real estate syndication business requires careful planning and execution, but it can be a rewarding and lucrative venture for those who are willing to put in the effort. By following these steps, you can build a strong foundation for your business and position yourself for success in the years to come.

Now, let's GOOOOOOOOOO!