Ep 99 - Critical Roles On A Syndication Or Fund Management Team

Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our.

Podcast, which is called Freedom through Passive Income.

That's right. It's sort of like a jingle.

I like that.

Welcome to another episode. Now, this episode is called Critical roles on a syndication or fund management team.

Yes, yes.

And we're going to start with. I'll take the first one. Okay. And it's where everything starts. Finding the deal.

Yes.

It all starts with the deal which.

Used to be in charge of.

Yeah. Which used.

Yeah, don't you like that used?

I like that word. But this is the acquisitions. This is. It's very important. And as with regular real estate, commercial real estate's no different. It's a numbers game. You're going to go through a lot of deals to find the one that works.

Yep.

And the second role, after the deal is found is somebody needs to evaluate the deal and do all the due diligence to see if it's really a deal. That role is the underwriter.

And actually when we first got into commercial real estate, I said, oh, I want to do that because I love numbers and I love getting into the thick of things and I love doing it. Until I saw all that was entailed and I ran. I ran as fast as I could. Oh, my gosh. Unbelievable. They were showing me one thing and my head just went.

It is a tough job.

Yeah. And then there's the next one is the people that or company that risks the capital. And these are the sponsors. This is like, as you had mentioned before we started filming the, like, earnest money, you know, putting up the earnest money on a property, on a deal. They're risking their capital in that deal.

Yes.

All right. And then another role is the high net worth loan signers. So you have to have these relationships with the banks. You have to have enough money, you have to have the liquidity, the experience. There's a whole lot of things that you have to have in order for the bank to approve you. Many of you know this. If you've bought a rental property. Right. Or bought anything, you've had to go to a bank and get a loan in order to make it happen. You have to jump off through all these hoops. Many times in a deal, there's numerous people who are signing on the loan together. Especially the larger the deal, the more people who are being the signers on the deal. That is usually called a key principal or the loan guarantor.

Right. And this is something, you know, so somebody's like, well, I can't buy a 200 unit. You know, I've never bought one that big. You know, the bank will never give me a loan. There you go.

Yes.

Next one is just overall marketing, building investor relationships. In fact, it was investor relations and marketing the deal. So once you have the deal and this is just marketing it to other investors for multiple reasons, but it's all around marketing.

Yeah.

And that's the investor relations role, right? Yeah. Okay. Then the next thing that you're going to want to do or responsibility that's involved in syndications and fund management is handling the rehab and property management. This is the operator. This is what we talk about very many times. One of the most important roles in this entire thing is the operator. And we're talking about operations in the terms of boots on the ground type operations. The people handling the property management, the people handling the actual rehab. If those guys don't have the grit to stick it through, then you're going to lose your butt. You're going to get in trouble and not always lose your butt because the rest of the sponsors can step in. And that's something that we've always done with our partnerships is, hey, you know, if somebody's going to run, we're going to step in and fix it for us and our investors. So you always need an operations person, the boots on the ground part of the operations.

Yep. And then the next role is the person that develops, implements and manages the business plan. And this person is known as the asset manager.

Yes, indeed. And some other roles that you're going to have in a company like this is you're going to have a visionary, the integrator, the operations manager that handles the office admin part of things. You're going to have the marketing team, the administrative team, the financials team and the legal team. And that's not necessarily everything, but we kind of gave you a high level overview of our org chart and how we're building it out. And we even have this laid out and who reports to who and whose name is in what box and what the responsibilities are. So this is really important when you're working with the team is defining those roles and responsibilities and knowing they've got team members in all of those positions.

Yeah. Which is. This is obviously very much more complex than regular real estate.

Yes.

100.

It was me, the rehab team and the title company. Well, we do like to keep these as short, as sweet as possible. Make sure you're joining our investor club right down here. FreedomCapitalInvestments.com head on over to our investor club. Again, this is a little bit different than our groups on social media, but don't forget about them as well. Make sure you're heading over to the groups, hang out with the team, ask some questions, comments, whatever it may be, and also make sure you're subscribing YouTube and five star reviews and all those other things that I'm supposed to ask for every single time on all of these episodes. But we always like to end with.

Invest smart, Live Happy. Bye everybody.

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