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This presentation explains ways to raise private money, how you can make money as a syndicator without any your money in the business.
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Real EstateSyndication
What is Real Estate Syndication?
Real Estate Syndication –is simply the pooling of funds from numerous investors and channeling those funds into real estate projects.
What you use the funds for?• Purchase property 100%• Equity sharing• Rehab/Redevelopment• Hard Money Loans to Third Parties
What Properties buy with Syndication?
• Residential (Single and Multi)• Commercial (5+ units, offices, shopping, land)• Foreclosures at courthouse steps• Short Sales & REO
• Wholesale• Flip
Short Term
• Buy and Hold• Hard Money
Long Term
Advantages of Syndication
Private Money
Hard Money
High Interest Rates & Fees
70% or below
Paperwork and Process
Low Cost
100% Funding
Fast EasyAccess
•Compile a list of possible investors•Invite them to a meeting
Step 1 Meeting of the Minds
Step 2 Sign Agreements
ApplicationOwnership Sharing RequirementsConfidential Disclosure AgreementNon Competing Agreement
One LLC per property (“Easy” Way)Ownership proportioned to contribution.“You” as manager/member, even if no
money invested in the entity.
Step 3 Locate Properties
Step 4Form Legal Entity
Send proposal for intended purchase.First come, first serve basis – allocate
ownership.
Step 5 Syndicator Responsibilities
Finding Properties
Analyzing the deals in order to establish if they are
suitable for the goals of the group
Supervising construction and maintenance
Selling the properties or secure long term financing
Managing the ownership group – regular meetings
Consulting/Acquisition Fees
• 1% to 5% or/and flat fee
Brokerage Fees (if licensed)
Asset Management Fees
• 3% of gross revenues or asset cost
Maintenance and Construction Fees
Percentage of profit on sale or disposition
• 8%-12% goes to Investor
• 10%-50% of Equity goes to Syndicator
Step 6 Syndicator Compensation
Property bought on Courthouse Steps – hold time 6
monthsPurchase Price $100,000Rehab Cost $ 30,000Final Selling Price $175,000
Acquisition $1,000 + 2% or $2,000
Asset Management Fees 3% of asset cost or $3,900
Construction Co. Fee $5,000Brokerage Fee (if licensed) 3% of sale price
or $5,250Equity Participation Fee• Investor receives 10% or $13,000• Syndicator receives 28% of Equity
Example:
Final Selling Price $175,000Less:
Purchase + Rehab $130,000 Interest to Investor @10% $13,000 a year
Brokerage Fees $10,500 (6% of SP)Asset Mngt. Fee $3,900Acquisition Fee $3,000Miscell (Ins., Title, etc.) $2,000
NET to Syndicator$12,600 or 28%
Breakdown:
St Louis Real Estate Coaching
Real Estate SyndicationBootCamp
December 8 (Saturday) 9:00am to 5:00pmat The Hive@44
5 spots left$495
$395 if you Sign Up Tonight