Are you interested in multifamily syndication, but don’t know where to start? Kicking off your venture as an industry syndicator can be achieved by finding the right partner that meets your goals, ethics and values.
Camino Verde Group has successfully partnered with new and vetted investors on a variety of multifamily projects, ranging from 20 to 305-unit properties. We have been able to help many of our small-scale partners expand their business by: (1) serving as Key Principal because of our depth of experience, (2) secure loans because of our greater liquid net worth, (3) adding investment into our partners’ outside deals and (4) promoting them to general partner so they can obtain the experience to secure future deals.
Before we syndicated with our current partners Divya and Puneet Tandon, founders of SJI Properties in Buffalo, New York, they had yet to expand outside of New York. After establishing a trustful relationship, we presented them with our acquisition in North Charleston, South Carolina and thoroughly reviewed the deal together. Once we realized our strategies aligned, we helped them diversify their portfolio.
“Thanks to our partnership with Mike and Kevin we were able to develop outside of our acquisitions in Buffalo,” said Divya Tandon. “They made everything make sense and we knew they were the right partners for us.”
It is our priority to ensure our partners are persistently growing with us and achieving their own goals along the way.
Why become a multifamily syndicator?
The multifamily industry is better with a team. Navigating multifamily deals with a team of partners can help you achieve your goals, manage operations and execute a successful project.
Establishing syndications with our partners has allowed them to not only fast track acquisitions and investment progress, but it has also enabled them to retain larger deals that are often difficult to take on alone.
Whether you are just starting out or consider yourself an experienced operator, the benefit of multifamily syndication extends further than just raising funds. Ventures reach into day-to-day tasks, including advising, learning, leveraging experience and access to future opportunities.
Our partners Seyla and Aileen Prak, founders of Bonavest Capital located in Los Angeles, have collaborated with Camino Verde on a few Las Vegas projects so far, including Sherwood Palms and Camino 2630. Through these syndications we have been able to become each other’s resources and discover new ways to bring value to deals.
“Partnering and working on strategies with Mike and Kevin has taught us so much and showcased their wide range of knowledge in this space,” said Aileen Prak. “Their communication style is one of the greatest benefits of working with them. They always make themselves readily available to you and are willing to talk through anything.”
We guarantee our partners consistent involvement throughout the entire process to maximize the opportunity at hand. Every project presents the chance to grow and learn from one another, whether it be the assisting with underwriting process or learning new strategies, there is always something to procure.
While establishing three partnerships with Rachael and Kenneth Wick, founders of High Point Investing in Minnesota, we looked for ways to help them grow their reputation to showcase an extensive range of experience in the field. Rachael and Kenneth’s focus early on was in smaller multifamily assets, and we had a head start on obtaining larger multifamily projects. We let them take the lead on managing assets within our shared syndications so they could enhance their business and skillset.
“Mike and Kevin have allowed us to take the lead as asset managers–with their oversight–on projects that we have partnered on,” said Rachael Wick. “We are so appreciative for this because it has given us the opportunity to gain a wealth of experience and knowledge of the business industry that we couldn’t have obtained elsewhere.”
Syndications can help you build a reputable track record quickly within the industry that would otherwise take years if you were to do it on your own. Leveraging opportunities and expertise from fellow experienced operators allows you to grow your own business and systems, especially those who do not quite have their resources or staffing established yet.
Finding the Right Partner
When searching for a syndication with a multifamily operator or wanting to become a co-general partner yourself, you need to find one whose reputation, values and interests align with yours. It’s important to get to know your potential partner thoroughly and ensure you can entrust them because your business and reputation is also at stake.
“We wanted to invest with Mike and Kevin because they are genuine people. We’ve met many people who say they are going to do something and don’t, but it was different with them,” said Puneet Tandon. “Our values and work ethic strongly aligned, which built trust.”
While your goal should be to find someone who you know will bring successful experience and knowledge to the table, you also want to look at their individual morals, ethics and values. Do they align with mine or is their going to be conflict and worry? This is someone you will be spending a lot of time with, and your end goal should be similar.
Bringing Value to Your Partnership
Once you’ve established your co-general partnership, you should look for ways to introduce what value you are willing to offer outside of raising capital.
Our firm was founded in 2019 with no assets to our name, but fast forward three years and we have expanded our portfolio to over 1,300 multifamily apartment units across the U.S. We were able to achieve this through showcasing our own value to experienced operators and forming strategic relationships with them.
There are several ways for you to showcase value to your potential syndicator, including finding new deals and asset management. Maybe you specialize in another industry like marketing, construction or accounting. You can get creative and find ways to ease the project or future projects.
Adding extra value ensures trust, builds your track record and sets you up for future deals and outside connections. Always favor your strong points and stick to your morals, and you can successfully form a joint venture to grow your multifamily business and strategy.
Camino Verde is committed to helping people, especially partners with high values that want to make the world a better place. We are looking for SWANs, Smart people, hard Workers, Ambitious and Nice. If you are interested in learning more about multifamily syndication or partnering with Camino Verde Group, reach out to me at firstname.lastname@example.org.