For this episode of CREPN, Vinney talks about how you can build a stellar multifamily syndication team right from scratch.
Vinney, who is an experienced multifamily investor and motivational coach, makes it a point that great wealth is possible through proper maneuvering within the multifamily market. The dynamics of a multifamily syndication deal are, in many ways, different compared to investing in single-family homes. Taxation rules are more complicated and you will also need to consider great property management.
It’s for these reasons that Vinney wants to focus more on creating valuable investing teams. This should comprise your partners who, in this case, are your initial investors that finance your deals. Vinney reminds syndicators that the choice of a partner is crucial to the success of a multifamily syndication. As a start, opt for a partner who has ample resources to share. This enables you to access funds you can shell out at anytime to finance your multifamily property deals.
Another important aspect of your multifamily syndication is legal compliance. Being investment setups where your partners get equity shares, a syndication falls under SEC rules. That being said, you should be able to recruit skilled attorneys who can helpm you navigate your way around the legal technicalities of a real estate deal. From forming the LLC to preparing your private placement memorandum, your syndication attorney can help you out in terms of compliance.
Accounting is also an important aspect. From the looks of it, managing your property has to involve knowing how much your properties make and how much goes out as operational expenses. Loan brokers are also essential because they allow you to secure ready funds to kickstart your property acquisitions. You will also need to have a property management team and a due diligence team to make sure your assets are in the best possible conditions.
Once you’re done with building your team, it’s smooth sailing from there. For more details, listen to this episode of CREPN to get a better grasp of the strategies you should be using.