A single-speaker YouTube presentation (by Jonathan Cronin) explaining how to acquire large apartment complexes via syndication while retaining majority ownership and contributing little or no personal capital. The speaker describes typical equity splits and roles (on-site partner, loan sponsor, asset manager, limited partners), gives numerical examples of potential returns via value-add strategies, and stresses that success depends on consistent deal-sourcing, building a network, and investing in knowledge. The video closes with a call-to-action to join masterminds or schedule a call.
Everybody, today we are going to talk about and I'm going to break down for you how you can buy large apartments, maintain 90% ownership and, and bring $0 to the table, okay? And not only how you can do it and win big there, but how your limited partners, your equity investors or your passive investors can all also create some life changing results through their take home their part. Okay? A lot of people say, well how are you getting anybody else any, any good deals if you're taking 90% and $0? Well there we, if you did not see the video, we just put out sharing two case studies of, of actual deals that gave the limited partners literally gave them 20, 20 and 30 plus percent in annualized return while, while they own 10% and the general partner own 90. Check that out. I'll put the link in the description. It is totally possible and it's really exciting. See the difference between single family. A lot of people have experience in single family but just don't know how to break into those bigger deals. Well, I want to tell you the difference simply is it's not about your cash and your credit when it comes to big deals, okay? It's single family. It's all about how much cash you have in the bank, how much credit on your credit score. You know, it's all about you. Whereas these bigger deals, if you want to scale really in anything in life, you've got to bring people in to help take you to the next level. You've got to, you know, if you, even if your net worth is $10 million, you know, if, if you want to take down a $20 million apartment complex, you've got to find a loan sponsor. You've got to find somebody to help you take that down. You know, especially if you don't have any experience in apartments or if you, if you, you know, you've got to pull money together. There's all kinds of reasons in these big deals that you would need to bring people around. But because they're so big, you have the potential to share in a lot of the capital and a lot of the equity and returns. So I'm going to share my screen and show you a, a pie chart that shares the syndication. So we recently did a training completely free. We'll have to share with that, share that with you as well. But in here we talk about the equity split. So this is the pie chart. I want to break this down. You can see everybody's roles right here. Okay? So you, you can see the on site partner or boots on the ground. Can get 10%. And all this is just, you know, it's, it's up to you how you want to position it. You know, if you find the deal which is right here, you get 5%, could get 10%, you know, just different ways to position it. But if you find the deal, you're in control. You can, you can tell people what they get and you can negotiate with the, with the different people that you bring on as to what you want to give them and what they want. So you know, the loan sponsor right here, I've seen some get up to 25%, but maybe even 15%. But the loan sponsor is the person that's signing on the loan. They're taking the risk, they're showing the experience. Basically. To be a loan sponsor, you've got to have a net worth equal to the loan amount and be 10% liquid. And you've got to have experience, you've got to have the credibility in the asset that you're buying. Okay. And then you have asset management. So, so all of these things are things that you could potentially do. You could be the on site partner, you could be the boots on the ground, you could be ca. Manage the capital, make sure investors getting their money there, you can raise the capital, you can manage the project, you can manage the asset, all of that without bringing any money to the table. Okay. The only person bringing money would have to be the limited partners. Limited partners. This says 20%, but again, this is just a number that you would put in your offering. You know, if you want to give them 20%, you can do that. Um, but generally you're going to limited partner and saying, look, you invest with me, I'll give you 10% preferred return or whatever you work out in the deal as you're underwriting the deal. Maybe it's 8% preferred return plus 10% equity. Or you know, for every $100,000 you invest, you get 3% equity, you know, whatever that looks like. You say there's, there's a million dollars open and that million dollars will get somebody 10%. So I put 20% in here. But it could also be 10% or less, however you want to position it. Okay, so this is the simple thing. It's. So this is what makes apartment buying so much fun. This is what makes these bigger deals so much fun, is you can, it's like the limited partner is going to come and just put money in and expect the thing to run. It doesn't work like that. You've got to have all these other people that are adding value to the table, bringing something to the table to make the deal work, to make it run. So in the end, this is how, this is exactly how you create massive value in an apartment syndication. Even without bringing money. You can find the deal, you can manage the deal, you can raise the capital. You can. And what's even cool, cooler about it is you can, if you don't want to raise the capital, you can just take that 10% and give it to somebody else and bring them on as a general partner to raise the capital for you. So there's all kinds of ways to play with these numbers, but everybody can participate. And so that's what's exciting about, about syndications. Now let's talk about what the catch is. What's the catch? How is it this good? It's not, it can't be that easy just to walk into a deal. You know, you get a, a 10 million dollar deal and you know, you, you maintain just say 50% ownership of the deal. You know, if you have a value add plan that, you know, we talk about this in our mastermind, we talk about how to create a value add plan and force appreciation. So in a $10 million deal, say you get it at a discount and you're all in at 8 million, you know, you immediately have 2 million in equity. And then over a year's time you increase the value through renovating the property and bringing the rents up to market rate. And all of a sudden you see a $3 million forced appreciation in equity. So you're talking about $5 million and you own 50% of the deal, you know, and like I said, you can own up to 90% if you don't, even without bringing money to the table. But you've also got to be the loan sponsor. You've got, but just say bare minimum, you make, you have 50%, that means you own $2.5 million within one year. Okay, so it gets pretty wild, but what's the catch? Okay, the catch is you've got to find a deal. Okay, first off, you've got to find a deal. And how do you do that? Well, we have plenty of videos on how to find the deal, but you've got to be consistent. I want to, I want that word to just ring in your ear constantly if you want to find a deal. They're out there. I'm telling you, they're out there. We've, we've had, our team has put down deals just in the past few weeks and they're incredible steals of deals. You know, they're, they're, they're huge deals that are making a lot of money. And you can, I promise you, you can find deals like the ones I mentioned. But it takes consistency of growing your network. And so here's where the catch is. In apartments, like I said, it's a, it's not about your cash or credit, it's about your network and your knowledge. So what are you wanting to invest in if you're not bringing any money to the table? What do you need to invest in in order to take down apartments? You need to invest in your network and your knowledge. So being a part, we have masterminds, but being a part of just anything you can possibly be a part of and make that part of the consistency because you can put in the legwork, you can cold call owners, you can do all kinds of things and we, we teach that, we talk about that, or you can buy leads, you can hire a VA to cold call for you, you can do all kinds of things. So what I recommend, and here's the catch is simply you need to invest as much as you possibly can. Not in the, in the asset, but in your network and your knowledge. Find groups, find books and courses and masterminds and events. Be a part of those things and then get into the to do's, Find your action items and be consistent. Okay, that may be a, a big talk for you today, a hard talk for you today, but it's exciting and fun. You just have to be consistent and, and know where to look up, level your network up, level your knowledge and I promise you, you will find ways to be a part of these deals. So I hope that was helpful for you and I would love to talk to anybody who's serious about buying apartments. We have plenty of time. We can jump on a call and, and if you see a link in the description with our schedule, I would jump on it and schedule a call with us. We'd love to talk with you about how you can be a part of some apartment deals and join a community of people doing the deals in real time. So have a wonderful day, we'll see you soon.
