I received a message yesterday night after my last video. They person asked what it takes to become a multifamily syndicator.
Here are the five qualities I rely on every day:
1) You Must Be Determined
Like any business, there are days when things don’t go your way. Sometimes, you are disappointed because someone let you down. When things go hard, you go harder. I will work to make things happen. I will reach out to people and travel in person if needed to meet face to face to hash something out. Having that “whatever it takes” attitude is a core principle for me. When you are making the leap either from single family or from zero, you need to be determined to get past all the no’s you will encounter.
As a syndicator, we have processes that take us from start to finish, but there are always challenges and there is no clear map to get to the end sometimes. So clear determination is a must to see your deals and your dreams through.
2) You Must Be Trustworthy
Another core principle is that you need to be trustworthy. People need to be able to recognize you are a trustworthy person. If you cannot trust yourself with handling your money, forget about raising money from others. If you are looking for investors to put up thousands of their hard-earned money into your deal but you have a hard time managing your own, you may need to revisit your options.
3) You Must Have a Track Record
When I say track record, it doesn’t need to be in real estate syndication, but it does help. For some of you, it could be that you have experience doing fix-n-flips or wholesaling and you consistently earned profits from money borrowed from lenders and investors.
For others, you may have a proven track record in the corporate world. I started out in single family more than 15 years ago but also built a career as a Chief Information Officer in the financial services industry. I can point to my operational and budget management experience.
If you are just getting out of college with no experience in the real estate world it will be tough to start out on your own. However, you can partner up with others that are in the syndication game either in cash or sweat equity.
Ultimately, investors need comfort that their money and the asset itself are in good hands. You need to demonstrate you have the business acumen to execute on the plan you outlined.
4) You Must Know Your Numbers
Knowing how to analyze and put a deal together is crucial. You don’t need to have 15 years of experience analyzing deals. Rather, you can partner with someone who has the knowledge and experience. Regardless, you need to have an understanding of how the numbers work, know how to read a given market, and know the verbiage used by brokers, lenders and sellers. You don’t want the lender asking you if you would like to do an “IO Loan” and you have no idea what they are talking about.
5) You Must Appreciate Your Team
Many great leaders talk about gratitude and with a good reason. When you are positive and appreciate the work that your partners, property managers and vendors are doing for you – and you tell them – it will make all the difference in the world. People like to know that you recognize their efforts. And when you do recognize, they will work that much harder for you. It will help you make each day a positive experience and help you on your path towards everyday greatness.
Tell me what you think. What qualities have made you successful? Leave a comment and let me know.