"Raising Private Money and Syndicating Deals"
When the going is tough the tough get
going goes the old phrase and this truly applies to the
real estate game. It is easy to make money when real estate
is booming but it is easier to make money still when things
are tough, provided you know what to do in order to make
that money.
The biggest opportunity under a so-called
tough economy is for those of us who are looking forward
in the acquisition of real properties and mortgage paper
that are going quickly into default.
But what if you don't have enough money to acquire those
assets? Is it possible to get people who have the money
to put that money up if you have the expertise to make it
happen?
Several of my clients are now asking me to help them to
"syndicate" real estate and the paper that supports
it, because they know that now is the time to make money.
Everybody makes money during good times - but the biggest
money, as I mentioned above, is made during the tougher
times and we are now in times which are considered to be
tough by many respected financial analysts.
Syndication means that a group of investors put their money
into a pool for the acquisition of assets that are bigger
than they can purchase by themselves. The person who is
in charge of the investment, the coordinator, is called
the promoter or the syndicator. The syndicator is generally
paid a fee for organizing these deals. The size of the fee
depends upon the size of the deal but it is fair to say
that no syndicator is going to go into a deal for peanuts.
So, the real question here is if you are going to get into
a deal where you are the syndicator what are the most important
elements to keep in mind? If I was going to be flippant
here I'd say the size of the check you get when the deal
is done and you are at the other side but I will be serious
certainly these things are important but the most important
thing is to ascertain first the process through which you
will raise money (which requires having potential investors
on tap) and secondly to structure the deal in such a way
that everyone wins.
The surest way to get more deals is for each one to pay
off as handsomely as possible. Bear this in mind as you
structure each deal. Do the hard work necessary for the
payday that's coming and remember that the only reason investors
are knocking on my door is because I have worked hard to
develop a reputation of delivering high value to those who
trust me with their money, and that is the best form of
advertising I could have.
David Lindahl, also known as the "Apartment
King" has been successfully investing in single family
homes and apartments for the last 10 years. David regularly
shares his secrets and experience on the same stage as Tony
Robbins, Robert Kiyosaki, and Donald Trump! If you would
like a free copy of the Special Report: 27 Ways to Buy a
Multi-Family Property with No Money Down, please go to http://www.davespecialoffer.com/
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