11 Steps to Mastering Apartment Syndication
By Joe Fairless, Author of Best Ever Apartment Syndication Book
Completing your first apartment syndication is hard work, but it shouldn’t be a mystery. In the Best Ever Apartment Syndication Book, multifamily syndicator and thought leader Joe Fairless spills his secrets, detailing every step he took on his path to success. Whether you don’t know where to start or you’re seeking insight on your next step, the Best Ever Apartment Syndication Book contains all the tools you need to succeed.
Joe walks readers through the 11 steps in the process he followed to build his commercial real estate empire:
1. Become an expert on apartment syndication technology.
- In order to become an apartment syndicator and effectively communicate with both your team members and passive investors, acquiring the right education and experience is imperative. Joe provides a list of more than 80 apartment syndication terms and definitions in his book to help you develop a fundamental understanding of the important concepts you’ll need to comprehend as a syndicator.
- In this step, Joe also recommends ranking any prior real estate experience you may have and identifying where you may be lacking before moving on to the next step.
2. Set a specific, quantifiable goal and create a long-term, motivating vision.
- How do you make money as an apartment syndicator? Joe explains the six most common ways a syndicator makes money, then provides a guided exercise to help you calculate how much money you need to raise in order to hit your first 12-month financial goal.
- After determining your 12-month goal, the next step is to create an affirmation statement to keep you motivated and on track. Joe then introduces the five-step Ultimate Success Formula created by Tony Robbins that massively successful entrepreneurs follow.
3. Build a powerful brand that attracts passive investors.
- Creating a valuable thought leadership platform is key when it comes to developing a powerful brand to drive your apartment syndication business. By cultivating a strong thought leadership platform, you will position yourself as an expert, expand your education, and gain recognition.
- In his book, Joe reveals the proven system he used to create The Best Ever Show, the world’s longest-running daily real estate podcast, in order to establish his own thought leadership platform and attract passive investors.
4. Evaluate and select the real estate market that will be the launching point for your apartment empire.
- To select and evaluate a target market, Joe provides an exercise to determine your top seven potential options. His six-step market evaluation process will help you rank these markets. Once you select your top one or two markets, he recommends conducting a thorough analysis and creating a database of properties and potential leads.
- Surround yourself with an all-star real estate team.
- The next step in Joe’s process is creating your all-star real estate team, which should include a real estate broker, accountant, property management company, mortgage broker, real estate attorney, securities attorney, and mentor. Leveraging relationships through your mentor and your thought leadership platform is an excellent way to fill out the rest of your team.
5. Tap into your existing network to find passive investors.
- Novice apartment syndicators often purchase the Best Ever Apartment Syndication Book seeking advice for raising private capital. Passive investors work with syndicators they trust, and Joe explains how to build that trust through time, displaying your expertise, and creating personal connections. He also provides five solutions to help create and expand your network, as well as the system he uses to approach conversations with potential investors.
6. Select the ideal business plan to maximize returns to passive investors.
- It is important to set the initial investment criteria of your business plan in the early stages to help you narrow down the number of investment opportunities you pursue. For this step, Joe recommends determining your investment strategy, target markets, the target date of construction range, and the maximum number of units you are capable of purchasing.
7. Create a lead generation machine that pumps out qualified off-market apartment deals.
- Armed with capital and your dream real estate team, you are now ready to find your first deal. Joe explains the difference between on-market and off-market deals and outlines the top 10 ways to generate off-market deals in your market. His deal-finding tracker will help you track your lead-generation process. He also reveals the secret to finding qualified off-market deals in a hot market.
8. Learn the science behind evaluating, qualifying, and submitting offers on apartment deals.
- The process of underwriting will help you conclude whether or not a lead warrants an offer. Properly underwriting a deal requires the rent roll, trailing 12-month profit and loss statement, and the offering memorandum. In the book, Joe provides a simplified financial model to underwrite deals using his six-step process. Based on the results, you may choose to submit a letter of intent and sign a purchase and sale agreement.
9. Prepare and present an apartment offering to your passive investors and secure financial commitments.
- After the property is under contract, you will begin due diligence, followed by securing financing from a lender. Joe details the two main types of financing and the steps to qualifying for your first loan. He also walks you through how to secure commitments from passive investors using the nine-step process he uses to present deals.
10. Impress your investors by effectively implementing the business plan and exceeding their return expectations.
- Congratulations! By step 11, you have closed on your first deal. Joe provides an email template to notify investors about the closing, as well as the 10 responsibilities you will face as the asset manager. He also outlines the 19 best practices for maintaining economic occupancy. When it comes time to sell the property, Joe’s eight-step process for selling your apartment community will guide you to the finish line.
For the complete step-by-step guide to raising money and buying apartments, check out the Best Ever Apartment Syndication Book by Joe Fairless today.
About the Author
Joe Fairless controls over $1,000,000,000 of real estate with a specific focus on value-add multifamily acquisitions. He’s also host of the popular podcast; Best Real Estate Investing Advice Ever show, which is the world’s longest-running daily real estate podcast. Past interview guests include Barbara Corcoran and Robert Kiyosaki. Joe is the author of real estate books, including Best Real Estate Investing Advice Ever Volumes I and II, which feature guidance from some of the sharpest minds in real estate. His third book, BEST EVER Apartment Syndication Book, provides a proven step-by-step system for completing a first apartment syndication deal.
He is on the Alumni Advisory Board for The College of Media and Communication at Texas Tech University and the Board of Directors for Junior Achievement