Bruce “Apt-GuySM” Petersen Delivers Unvarnished, Authentic Real Estate Education
It seems that everyone is on the hype wagon that is multifamily syndication. Everywhere you turn someone is espousing the virtues of passively investing in an apartment complex through some Deal Sponsors project. Passively investing is a great way to diversify an investment portfolio and to gain access to large real estate assets that you might not be able to find or buy on your own but should you really invest?
Bruce Petersen spent 18 years in the retail industry before amassing a real-estate portfolio with nearly 1,000 units. Here’s the investing strategy he’s using that’s ‘head and shoulders better’ than a traditional approach.
For those that are considering or may have even done a syndication or two you should be familiar with the Sponsor Promote, it’s one of the main reasons to take on the work and stress of doing your own deal.
Most Investors have heard of and may expect a preferred return in their investments. There are legitimate reasons for not offering one and may be in the investors interest to not have one.
I’m not sure if many people know that there are options in the way the Sponsor of a real estate syndication can structure how they pay the investors out when a property sells.
Everyone and their dog wants to tell you about the latest get-rich-quick scheme. If someone’s trying to sell you on a deal that involves no effort, no risk, and great returns, you should be very suspicious. Deals that sound too good to be true usually are.
When you start syndicating, you may find yourself running around fighting every little fire that ignites. That’s understandable while you’re in startup mode, but it’s not a sustainable way to run things. To build a really solid syndication business, you’ll need to attain some scale. The way to do that is to learn to delegate.
I want to tell you a story about a syndication deal I put together, and how right at the very end, $5.2 million completely disappeared. I know: I still can’t believe it myself, but it happened, and it offers a very important lesson that every syndicator should know before they get into this line of work. Here’s how it went down.
So what’s all the talk about Return “On” or “Of” by Deal Sponsors mean (that is assuming they are talking about it at all)?
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