So you’ve heard that you need to invest in real estate. That’s great, but what all does that entail?
For most, the thought of buying real estate and then operating and managing their assets sounds daunting and like a real headache.
Enter your friendly neighborhood real estate investor/syndicator.
Now you know how to invest in real estate, how do you choose a syndicator to invest your hard-earned money?
THEY HAVE A TEAM AND EVERYONE HAS A POSITION
You want to ask a few questions here-
How many people are on the team? Who is in charge? You don’t necessarily need your syndicator to have a huge team. But if they have a team of individuals, each having a specific responsibility, you can feel at ease that the deal will go smoothly and know what they are doing.
Some key areas to look for dedicated team members are:
- Acquisitions
- Asset-Management
- Investor Relations
- Operations
How many deals have they done as a team/individual?
Obviously, it’s ideal to partner with a team that has years of experience and a solid track record. But every team starts somewhere, and I don’t think it’s necessarily a deal breaker to partner with a newly assembled team. Rule of thumb is, if at least one of the partners has some years and deals experience under their belt and the others have a track record in life, you’re good to go.
TRACK RECORD
Don’t just trust your gut. Do your research and ask the tough questions to make sure they’ve done theirs! More questions to ask;
- How many deals have they done as a team/individual?
- How aggressive/conservative is their underwriting style?
- How much capital have they raised and deployed to date?
- How many investors do they have in their syndication?
- What’s the average rate of return for their investments?
- What is their experience investing in the multifamily space?
- What is their experience investing in a particular market or sub-market?
Just because someone doesn’t have a track record as an apartment investor, doesn’t mean they don’t have a track record in life. Consider their related or unrelated professional experience. What has their career been? Do they have a track record of success? How have they dealt with difficult situations?
DON’T TAKE THEIR WORD FOR IT
Ask them for the contact information of 3-4 of their current investors.
Ask specifically for one who has been in several deals with them, one who is relatively new, and one who maybe they had to have a hard conversation with regarding their investment.
You want to hear the good, bad, and ugly in these conversations.
If your potential syndicator is transparent, you’ll get what you need from these conversations.
SHOW ME THE INFO!
What information and financials can you expect to have access to? How will it be delivered?
Here at Kahuna Investments we provide our investors with a wall street grade financial report monthly. It isn’t just a snapshot, it is a comprehensive breakdown of all the financials for each property. You can access all information within our online portal.
You want your syndicator to be transparent in all things-good, bad, and ugly.
Ready To Take Action?
If you are looking to be a passive investor and would like to learn more about Kahuna Investments and if we are the right fit for you and your money, CLICK HERE.
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If you are a syndicator looking to learn how to get more deal flow and find more capital, CLICK HERE.