RE #138: Real Estate Syndication 101
On this episode, Chris discusses Real Estate Syndication. He describes the differences between a syndication and a fund, the pros and cons of syndication, breakdowns of GPs and LPs, deal structures, fees, and Twitter questions from listeners. Enjoy!...
On this episode, Chris discusses Real Estate Syndication. He describes the differences between a syndication and a fund, the pros and cons of syndication, breakdowns of GPs and LPs, deal structures, fees, and Twitter questions from listeners. Enjoy!
Follow Chris on Twitter: www.Twitter.com/FortWorthChris
Learn more about Chris Powers and Fort Capital: www.FortCapitalLP.com
Follow Chris on LinkedIn: www.linkedin.com/in/chrispowersjr/
Follow Fort Capital on LinkedIn: https://www.linkedin.com/company/fort-capital
(00:58) - Real Estate Syndication
(01:52) - Syndication vs. a Fund
(03:20) - Syndicating vs. Investing Your Own Capital
(03:43) - How a Syndication Works
(04:24) - General Partners
(06:14) - Limited Partners
(08:27) - Advantages of Syndicating
(10:17) - Advantages from a GP Perspective
(11:25) - Advantages of Syndicating vs. a Fund
(12:45) - Setting Terms As a GP
(13:59) - Working With Institutional Capital
(15:16) - Disadvantages for General Partners
(16:43) - Disadvantages of Syndicating
(19:09) - What LP’s Should Be Looking For in a General Partner
(20:54) - Questions to Ask Potential General Partners
(25:17) - Best Practices for Finding a Co-GP
(27:59) - Types of Deal Structures and Their Merits
(35:28) - Raising from Multiple Investors
(36:42) - Creating Liquidity for LPs
(43:48) - How Money is Made in the Syndicating Industry
(46:56) - Type of Fees You Might See Out of a Syndicator
(50:40) - How to Keep Alignment Between the GP & LP
(51:50) - How do terms change between acquisitions and a development deal?
(53:24) - Lenders
(56:35) - The Fort Capital Investor Onboarding Process
(1:02:54) - Technology Impacts as a Syndicator if You Decide to Use a Software Like Juniper Square
(1:07:23) - Biggest Tailwinds in the Industry
(1:12:15) - Data and Stats on How GPs and LPs are Looking at the World as it Relates to Syndicators
(1:14:28) - Twitter Questions: Adjusting Acquisition and LP Return Criteria Given the Market
(1:16:52) - What part of your structure has changed the most over time?
(1:18:29) - What's the most surprising thing that investors are interested in?
(1:20:25) - Wrap Up & Contact
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