Tag Archives: syndication

Ep. 161 Omar Khan: Understanding the Analytics of Multifamily Syndication

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For many investors, multifamily syndication is an intriguing and attractive way to scale investment goals. And with good reason. Syndicated funds can be used to leverage greater returns than you’d normally see investing on your own.

Syndication can be a great mutual benefit for both the syndicator and investor – if you understand what it takes for a good syndication deal.

Due diligence is important for any investment, but it’s especially true with syndications. In many ways the stakes are much higher. Whether your contributing capital for a syndication deal or you are the syndicator using using the capital of others, you need to understand the structure of a good deal.

That’s where analytics come in.

Understanding the Analytics of Multifamily Syndication

When you place your funds into a syndication pool, your putting a considerable amount of trust in the person actually making the investment. That’s why you should be aligning your investment goals with data-driven syndication deals.

If somebody is going to tell you your funds are in good hands, they better have the data and metrics to back that up. While no investment is zero-risk, a syndication deal backed by a comprehensive market and asset data analysis has much stronger prospects than one without.

About Our Guest

multifamily syndicationOmar Khan is a real estate investor with Boardwalk Wealth. Boardwalk Wealth is an investment firm that focuses on helping international investors find U.S. multifamily assets.

This episode, Omar discusses the importance of understanding the analytics of multifamily syndication and also shares why he is bullish on the Florida multifamily market.

For more information about Boardwalk Wealth services or to discuss Florida multifamily syndication deals, you can contact Omar directly at omar@boardwalkwealth.com.

 

 

 

 

Ep. 103 Reed Goossens: Talking Syndication of Multifamily Projects

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syndication of multifamily projectsLet’s face it, every real estate investor just starting out dreams of landing the huge deals. The question remains though: how to make it to the institutional level?

The answer comes with syndication. Syndication expands the opportunity to make larger deals by leveraging capital from a group of investors.

For singlefamily and small, residential multifamily, the first syndication deal can seem like a large step. There are a lot of moving pieces to keep track of in a syndicated deal that may seem complex to investors used to self-financing.

Reed Goossens knows the power in syndication.

A native Australian, Reed moved to the U.S. after educating himself in real estate investing. As a foreign investor, Reed saw the potential for earning cash-flow in U.S. real estate markets and set about acquiring properties.

Initially investing in small duplexes in tertiary markets outside of New York City, Reed had been using his own capital to finance deals.

He realized the need to scale his real estate investment goals and set about transitioning from residential multifamily to commercial multifamily through syndication.

Reed founded RSN Property Group and has been investing in commercial multifamily properties through syndication since 2011.

In addition to expanding his asset portfolio and investor base, Reed also hosts a podcast to educate foreign investors in the U.S. real estate market

Syndicating Investment Deals

  • SEC has strict rules for syndication under Regulation D
    • Rule 506 (b)  – allows for unlimited accredited investors (earn +$200k/yr. or personal worth of +$1 million); up to 35 unaccredited investors (earn under $200k/yr.)
  • Surround yourself with credible investors; find a mentor
  • Have pitch deck to educate potential investors on deal specifics
  • Private Placement Memorandum (PPM) – after sourcing investors, a PPM is needed
    • Drafted by syndication attorney
    • Outlines how deal is being syndicated under a regulation (e.g. Rule 506)
    • Tailored to individual investments
  • Syndication Contracts
    • Typically, 30 days for due diligence; 45 for larger properties
    • 15 days for financing and 15 days for closing
  • Preferred Returns
    • Limited investors get “x” percent of 1st earnings, decided in contract
    • Future returns split between limited partners and general partners (syndicators)

Resources

Reed and RSN Property Group are always on the lookout for value-add investment deals. If you think you have a potential deal, contact Reed at reed@rsnpropertygroup.com.

Reed also hosts a podcast that educates foreign investors on U.S. investment real estate markets- Investing in the U.S.: An Aussie’s Guide to U.S. Real Estate

Like many beginner investors, Reed learned about creating financial independence and the power of passive cash-flow through Robert Kiyosaki’s Rich Dad Poor Dad.

EP26 Joel Block – How Will the New Crowd Funding Rules Affect Raising Capital?

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251ab4eJoel Block, CPA of Bullseye Capital and founder of the National Association of Syndicators joins the Invest Florida Show for the 2nd of 2 part series. Big changes have occurred in crowd funding. In the last week of March 2015, the SEC announced the new set of crowd funding rules implementing Title IV of the JOBS Act. These changes affect Regulation A small public offerings, and are referred to as “Reg A+” Joel is with us to tell us what this means.  It might be a good idea for listeners to check out the first episode on general syndication issues from our first discussion with Joel if you are new to syndication  —->  Click Here!

 

Points:

  • In April 2012, Congress passed the JOBS act which was designed to allow small businesses easier access to capital
  • The Securities and Exchange Commission (SEC) released some new rules the last week of March 2015
  •  Crowd funding is an offering of securities in a company.  The company buys the real estate.
  • Changes in exemptions from individual State registrations

Check out this episode!

EP24 Joel Block- How to Raise Money for Bigger Real Estate Deals

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251ab4eYou are a successful real estate investor. You have want to acquire larger assets, but lack the equity. How do you acquire the funds? What is the process? What are the rules?

Our guest on the show is Joel G. Block the CEO of the Bullseye Capital Real Property Opportunity Fund, LLC and founder of the National Association of Syndicators.  Syndicating real estate is the method investment firms use to pool larger sums of capital to acquire larger assets.  Syndication is an excellent mechanism for people to put together groups of investors to acquire larger assets than they ordinarily would be able to acquire. It also helps investors who don’t have the time to go out and find their own deals, let alone the time to manage the property, to invest in and benefit from ownership is real estate.

Relevant Points Discussed on the Show…

  • Revenues that come from Syndication
  • General Solicitation
  • The Risks and Rewards of Syndication
  • The Financial side of Syndication
  • Customers who are the right fit in a syndication deal

 Quotes from the show

“The money is not in the real estate, the money is in the money.”- Joel G. Block

“New technologies create new ways of doing business.”- Steven Silverman

“Fear and greed is what makes the world go around.”- Eric Odum

“Once you learn how the money works, you will be surprised at how many opportunities are out there.”

-Joel G. Block

Contact Information

818-597-2990

Finally, if you are interested in learning more about syndication visit Joel G. Block’s blog at syndicatefast.com where he posts videos and free literature about the many facets of syndication.