Steps, Skills, and Strategy
A syndication is a partnership where a group of investors pool their capital into a single real estate investment. While the definition is simple, executing a syndication is not. In this article, I’ll walk through the steps we took to close our first syndicated deal and share what new investors need to know before raising capital.
Understanding Multifamily Syndication
The first step is understanding the investment process. We teach the Buy Right, Finance Right, and Manage Right framework for a reason. If you can’t underwrite deals, secure financing, or asset-manage a property, you’re not ready to take investor capital. Your foundation has to be solid. Syndicators are stewards of hard-earned money, and the responsibility is significant.
Once you feel confident in your skills, study the laws that govern syndications. Our first call was to a syndication attorney. We knew nothing about structure, timelines, or required documents. That call lasted more than two hours. The earlier you make that call, the better. Waiting until a deal is under contract is too late.
Building Your Syndication Team
After you understand the model and the laws, start assembling your team. You won’t have every vendor in place on day one, but begin with the essentials: syndication attorney, CPA, website, legal entity setup, and a property management company. Over time, you’ll add more vendors to your business.
Key vendor categories include: website design, hosting, SDIRA providers, LLC setup, property management software, cost segregation, CPA services, investor portals, CRMs, VA support, insurance, and more. Syndication is a team sport. You can’t do it alone, especially if you’re building your business while still working a full-time W2 job.
This is also the stage where you decide whether to start as a passive investor or jump straight into a general partner role. There’s no right or wrong choice. It depends entirely on your resources, time, and appetite for responsibility. Even passive investors need to understand how to buy right, finance right, and manage right.
Learning to Raise Capital and Source Deals
Once we built our foundation and gained confidence in our business model, we were ready to try syndication. The capital raise on our first deal came together smoothly because we prepared. The challenge wasn’t the money. It was the speed of the transaction and the responsibility to investors. Losing your own money hurts. Losing investor money weighs heavily. Don’t let fear stop you, but also don’t ignore it. Education and preparation matter.
Proximity is power. Join a community, attend events, shake hands, and build relationships. You will always raise more money from people who know, like, and trust you. Friends and family are often the first to hear about your deals, but relationships built at networking events can be just as powerful.
If raising capital feels uncomfortable, remember this: you’re not begging for money. You’re offering access to one of the most reliable asset classes available. Apartments meet a basic human need: food, clothing, and somewhere to live.
While raising capital, you must also source deals. The question always comes up: “Which comes first, the deal or the money?” If you plan to run a 506(b) offering, the relationship must come first. You cannot present a deal to an investor without a substantive relationship and a clear understanding of their goals and experience. Build the relationship, then present the opportunity.
Putting Your First Deal Under Contract
When your education, team, and investor relationships are in place, it’s time to find a deal. Once you secure one under contract, the syndication process becomes a fast-moving machine. Here are the steps in order:
• Learn how to Buy Right, Finance Right, and Manage Right.
• Study the syndication model and securities laws.
• Build your core team.
• Identify your strengths and available time.
• Decide if you’re operating as an LP or GP.
• Join investor communities and attend live events.
• Learn how to raise capital and begin building relationships.
• Source deals.
• Put a property under contract.
Syndication is a powerful tool. It allows you to invest with limited personal capital and scale your portfolio quickly. As someone once told me, the quality of your life is tied to the quality of your options. Syndication gives you options in multifamily.
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