A concise YouTube presentation by Jonathan Cronin explaining apartment syndications: pooling investor capital to buy value-add apartment properties (typically 30+ units) and strategies for acquiring deals, raising private capital, and structuring syndications to allow operators to control large assets with little or no personal cash invested. Covers deal sourcing (cold-calling, networking, brokers), value-add mechanics (forced appreciation via rent increases), roles (sponsors, limited partners, private money lenders), and the legal documentation required (LPA, PPM).
Hey, everybody. In today's video, I want to talk to you about apartment syndications, what those are and how to buy apartment, how it allows us to buy big apartment complexes with $0 out of our pocket. My name is Jonathan. We run a mastermind that is all about buying massive apartment buildings. I've been in real estate for several years and have been able to replace my income through real estate. So I love real estate as a whole. My partner has around 30 million in assets under management. And we both really feel like apartments are the best asset class right now, or asset to buy. And we've kind of switched pretty much our whole model to that. But what is a syndication? A syndication is basically just a group of investors that pool their money together to buy assets. Simple as that, bringing money together to buy bigger deals. And, you know, syndication can be for businesses, or it can be for danger debt funds, or it can be for any type of real estate. And you may have heard it done in smaller real estate deals where you just simply bring on somebody to provide the funds, you fix up the building and then you both split the profit. So this is just a larger scale. And so, yeah, and then apartments. So the next step, understanding apartment, the syndication is a pool of money comes from investors. Well, the next step, if you really want to get into apartment syndications, you just simply find the deal. We're looking for apartments that are over 30 units. We believe that once you get over 30, you have a more passive investment, something that you can hire a better management company and it's more reliable. The more units, the better multiplication factor you have. So if you improve the property and you can increase rents to just say an extra $30, well, that's $30 times the number of units. And that increases your income and then increases your noi, which is your profit margin. And that's how your property is valued. And that's how you increase and create what's called forced appreciation very quickly. And, you know, another reason we do that is it's more stable through bad economies. Again, we buy for cash flow. If you've heard us on this channel, that's one of the ways we protect ourselves against, you know, downfalls is we buy, you know, at 70, 80% of the value and we fixed it up and through forced appreciation and the property's already cash flowing, we have a lot of wiggle room, a lot of buffer room and room for error. And then the other reason we are focused on apartments rather than single family or rather than any of the other things I mentioned, businesses, debt, Funds or whatever and syndications, which I love. Businesses. We have a business, several businesses that you know, and we're looking for more. But we believe apartments rather than single family, rather than these other vehicles have massive upside potential. Okay. And it doesn't take much, like I already mentioned, to create incredible appreciation, substantial stuff that, you know, where it's even made our partners, you know, a million dollars in just 14 months off one deal. If you haven't seen that story of how that happened, I can put a link in the description to show you that, or we may just create another training to show you that. But, you know, and as far as people ask a lot, how do you find these deals? How do you find where you can be 70, 80% all in? Well, this the key, the answer is there's many ways. But the biggest focus, I believe, especially in the market, in the economy we're in today, is cold calling. Get out there and just start calling people and if you don't want to do it, find a VA which is a virtual assistant. There's plenty of those out there that you can just teach how to do it. We have cold calling scripts that we give in our program, but you know, we would happily give those to you if you need to just reach out, whatever. But cold calling off market deals is one of the biggest ways to do this, you know, but you can also just start networking, start hitting up brokers, start talking to people that are working for apartment complexes, whether it's management companies, you know, H vac companies, you know, landscape CPAs, attorneys, blah blah, blah, just list goes on and on. You can be talking to those people that are directly talking to the owners and to the property and see, do you know anybody that wants to sell. And so, you know, if you're looking for a deal, you know, that's what an apartment syndication is, is we generally are buying value add apartments, but you can also do this just for new construction and building apartments. It's just generally going to be a longer wait time to see the gains, but it could be a much more substantial, much larger gain through that you can use other people's money without using your own. And the last thing you probably need to understand raising private money is where you're going to be able to jump in an apartment syndication. The way you get in it with no money out of pocket is you add value through responsibilities, through experience. Like, you know, there's different pieces to the pie when talking about an apartment syndication. And however many of those pieces you can fill, you can bring to the Table will give you added equity percentage in the deal. So let's talk about private money lenders versus limited partners or investors. Okay, so a private money lender, some people err on the side of, I just, I don't want any partners any more investors in the deal. They say it may complicate things. And I understand that perspective and that's totally valid. So a private money lender would just be loaning money, you know, just a regular person, just like an investor, just like a limited partner, just loaning money. Whereas, and they get a note and if you don't pay, they can put a lien against the property. But a investor is putting money in to get equity out of the deal and they get preferred returns or they get, you know, their name is on the, their note is against the llc. So they get a piece of ownership. But the money, it's like, you need to think about it like if I were to go buy a business right now and I just brought money, just bought the business and said, okay, have fun. There would be a chaos, it would be a mess. If all that I'm bringing is money, it has less percent equity, I don't have as much value that I'm bringing. There's still many pieces to the puzzle that it's needed. So as a syndicator, as someone who's going to set up an apartment syndication, the more things I can do, like being a loan sponsor, managing the deal, being the property manager, finding the deal, you know, there's so many things I can do to add value and get, you know, we're seeing deals, syndications where the, the people bringing the money that equates for about 10% of the equation. So you can have 90% ownership of a deal without bringing any of your own money. And the last thing you need to know when setting this thing up is you want to connect with a good attorney. You know, when you're wanting to go buy real estate with $0 down, you're wanting to create apartment syndications, especially 30 plus units, you need to make sure you have a good attorney that's drafting up LPA documents and PPM documents. What does that stand for? LPA is limited partner agreement and PPM is private placement placement memorandum. And these are just like the, the laws of how, how everything's going to flow, how all the, the rights of the limited partners, you know, can they just step in and tell you to sell the property? You know, like there's all kinds of things telling, finalizing what's the, you know, deal structure how much are they getting? You know, all this stuff, you want to make sure it's all very well legalized and structured in these documents. So big deal, you know, the syndication. So we walked you through, what is the syndication? You know, how can you use the syndication? How do you find these apartment deals and how do you raise the private money? And that is all you really need to know to buy real estate. Buy these apartment deals with $0 down using apartment syndications. I'm sure there's a ton more we can talk through. We go through all of this in a six week training in our mastermind. But the key premise of even a mastermind or anything like that is the more you know, the more value you can bring and the more equity you can have in these deals and the more people you know, the more deals you can do and the more knowledge you're going to be able to get and the more credibility you're going to be able to get and the bigger deals you're going to be able to get. So those are the main things that you need to know about what is an apartment syndication, how does it work, and how do you buy real estate with $0 down? Hope that helps. If you actually want to be involved in something like a mastermind, you want to find out more, let us know. We'd love to connect and see if what we do is a good fit for you. Yeah, I think there's a lot that we could go over, but love to connect with you. If that resonates with you, let us know. All right, have a good day.
