Who is a seasoned Syndicator and Wealth Builder?-- Jeff Greenberg! || Ginny Bolling

Hey.

Hey. Are you looking to retire early or at least get some financial freedom, a little extra cushion? Well, we probably have the solution for you. It's not a side hustle that takes a lot of time. This is called passive investing and it's commercial real estate. We'll show you how to do it. It's not like it used to be. It's way easier. We have decades of experience in the business and so we will show you how to do it. This is Pivot to Prosperity, sponsored by Pivotal Real Estate Investments. And go to the website pivotalrealestateinvestments.com if you want to know when we have an opportunity. Thank you. Jeff Greenberg and I know him from Raise Masters, which is a mastermind that we both belong to. There's a lot of experienced syndicators and investors of all types of. And it's been quite the dynamic group. And Jeff is one that our fearless leader, Hunter refers to often as a good authority for information on many things. So this will be a very interesting discussion. Jeff, why don't you give us your background?

Sure. Thank you, Jenny. I call myself a recovering syndicator because I've been syndicating multifamily and student housing deals for the past 12, 13 years. And now I'm on the fundraising, the equity fund management side of things where I help investors get into high quality deals with high quality sponsors. And so I'm mainly on the equity side. But for the past 12, 13 years, I've been on the GP side running the deals and doing multimillion dollar, multifamily and student housing deals.

That's terrific. And so what states have you been involved with?

I've had properties in Ohio, Georgia, Arizona, Texas. I think that's, that's all.

Okay. Okay. And you're sitting where, where are you located?

I'm in California. I'm in Southern California at this point.

All right, well, so. And we chatted a little before, of course, and you have said that you're looking at all times for sponsors, which is of course something we are all always doing. I think the fund fund model that you have started, would you like to touch on that?

Sure. But let's just let me many. Let me mention I'm always looking for good quality deal sponsors to help bring my investors into with my fund. My fund is rather unique in that it's a diversified fund, but it's also customizable. So let me explain that. So we have the umbrella of the fund and we could bring in all different kinds of opportunities. They could be Commercial real estate as well as other opportunities. But they could also be all different aspects of commercial real estate. So we're looking at possibly self storage, mobile home parks, assisted living, as well as multifamily self storage, or, excuse me, student housing. And we could also get into development. Now the uniqueness about this fund is the investors get to pick and choose which deals they want to be in. So because of that, I could bring all different asset types, asset classes, and the investor get the last say so as well as if they want to be in that deal or not. Now on these deals, we're looking for some deals that have a high cash flow and other deals that may have a higher capital appreciation. So we get the diversification of cash flow and appreciation and investors get to pick and choose which one they want to be in. They can evaluate each deal and decide if they want to be in. And it's all carried underneath the same fund. And at the end of the year, each Investor will get one K1 no matter how many deals they're in. So it's a real big advantage for everybody.

Yeah, yeah. That's interesting. I may at some point get into that myself. I love that it's different asset classes because as we all know, there's life cycles for everything. And multifamily has been the darling. I think it will continue to be the darling for a while yet in certain areas because of the higher cost of buying a house. But I'm in Orlando, so we're having a lot of in migration. As far as syndications, why don't you talk about. I think you said you just closed on a property, is that correct?

Yes, we closed on 617 units. It was two properties. One of the properties in Houston, the other one is in the Dallas Fort Worth area. And so we just closed on that one that was a big property or big portfolio, I guess, and we're excited about getting that one moving along.

So when you're looking at a deal and you're doing your diligence, what kinds of things are you primarily looking for? I know that it's. There's a ton of things, so I'm not asking you to give, go down your list or anything, but what are your key absolute deal breaker?

Well, number one is the deal sponsor. Before I start looking very deep into any of the numbers, it's the deal sponsor. To me, it's the jockey. It's the jockey, the one that's running the deal. I want to know about their business, I want to know how long they've been doing business together, how long they've been in that location or the area that they're buying in their expertise. The asset manager, the person that's between ownership and property management is one of the key people. And I want to know what their experience is as far as running a business. So that comes first. Once I'm comfortable with the management, then I could be a little bit more comfortable when I start looking at the numbers. Because numbers are things that people can manipulate. You change your assumptions here, change your assumptions there. It's easy to manipulate numbers. I tell people that I can make numbers dance on the page. And so I have to have my initial trust in the deal sponsor. Then I'll go look at the numbers and see what their assumptions are. I want to see if I agree with those assumptions, if I feel they're conservative or if they're too aggressive. I want to see right now in this environment, I want to know what they're doing to protect the downside before I get excited about all of that upside and those pretty numbers. As far as how much money I'm going to make or how much money my investors are going to make, I want to see what are you doing in case things don't go so well? What protections are built in to this deal with the lending, with the liquidity of funds, how far down can you go in occupancy? What if rents are flat? What if rents go down some? Where are you on protecting my money and my investors money? And so those are the big things. And then the one thing we talked about earlier is then we go into some of the legal stuff and reading the PPM and making sure that I'm comfortable with all of the little nuances within a PPM and making sure that investors are protected in that way. But the big one, number one, is the deal sponsor. And a lot of people that are doing passive investing jump right to the deal. And I feel that's the wrong direction. You go to the deal sponsor first and then you could start looking at the deal and deciding if you like that deal or not.

I totally agree. And just to help differentiate for any new viewers, since this is going to be a new channel, on the one hand there's the syndications where perhaps I'm a general partner, which means that I would be in the GP team that they would be looking to and analyzing along with my sponsors or key principal or whatever the case may be because I bring in people that are also more versed even still. And then with your model, what you're doing is you're taking existing groups, you're not looking to join the general partnership team, generally speaking in the sense that you would be on the operations, boots on the ground every day kind of a thing. Correct?

That's correct. I've done that. I've been the, the main GP on multiple deals and yeah, I just wanted.

To help differentiate that. And then also on the ppm, just again to help people with acronyms. That's the private placement memorandum, which is the legal document that papers essentially the establishment of the company that is going into the business of acquiring and running the property to implement a business plan and whatnot. So yeah, that's, that's all. And like we were saying, a critical part to read all of that.

Yeah, the, the, the PPM is a group of documents and one of the documents is the operating agreement, which is that legal document. So those are all within what's considered the ppm. And it's very important to read the legal document to realize what your legal rights are. As a passive investor, you're coming in as an lp, which is a limited partner. You're not on the GP side coming in as a limited partner. But you still have some rights. They are limited and those are, that's for a reason. That way you also have a limited liability because you're not making those decisions. The GPS are the ones that are making the decisions and, and so they end up with the liabilities. So you're limited liability on the LP side, but it's important to know what your rights are.

Yeah, that's terrific. And now you also have gone full cycle on several properties. You want to talk about how those went and what results you got?

Well, there was many different properties. Some went very well, some went okay. You know, you're not. Every deal is a home run and you have to understand that we've always made money for our investors. Some deals we've made more than we have on others we've had some deals that were phenomenal, phenomenal opportunities that investors. Let's see, the last one we did in it was a two and a half year hold and investors got 70, 71% return in two and a half years. So that's not, that's not bad.

But the first deal we did on and return of.

Yeah, they got the return of their money plus seven, another 71% in two and a half years. So, so that's, that's not too bad. You know, the first deal we did years back, I believe my investors got about 7% return. They got 7% annual return. So they got, it was a six year hold. So they got about 30 something percent. That's not as, that's not as great. But when I talk to people about it, they did better than they did in the bank, you know, and they may have done better than they did in most of their stocks, but not all deals go, go. Fantastic. And you know, the main thing is, is that you make money, you don't lose money. The main thing is you don't lose money. And we've never lost money for investors and some of the deals have been phenomenal.

And what are the alternatives? That's the thing that I keep going back to. It's like there's not a lot of good alternatives out there. Especially when, when you really see how much commercial real estate over decades and decades have. It's, it's, the averages are far better than any other asset class.

It is. And then especially, you know, we're talking multifamily, especially multifamily. I mean there is definitely housing shortages in certain markets. So there's huge demands. Just being in the right markets where those demands are is extremely important. We're going to go through a little bit in the way of bumpy times because of interest rates right now, but there's deals out there, they just have to be found. They're just a little harder to find right now. The fat past years you could practically take any deal, even a poor deal and do do very well with it over the past say 10 years. So now I feel it's a little bit more difficult. But they are out there. They are out there for somebody that's really looking for them and knows what they're looking for.

And that's where our experience being in it as long as we have is going to really pay because we look behind the curtain at what are the assumptions. And I think that's a terrific part of what makes the difference between the different options there. But good, good. Well, is there anything else you'd like to mention? How to get in touch with you? You want to.

Well, you can get a hold of me@synergetic.ig.com is my website. You got the spelling right behind me. Jeffynergetic IG.com also I have a little gift for anybody that wants to learn more about what type of things to look for when you're looking at a deal sponsor. So if you go to sigcre.com sponsor I have a little ebook on questions to ask deal sponsors before you get involved in a deal things to ask. Deal. Sponsors.

Great. Great. Okay, well, very good. Thank you. Appreciate your time.

All right, well, thank you all very much. Thank you for having me.

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