The $5 Billion Plan for Your Apartment Syndication Business


by Joe Fairless

I n late 2020, I achieved one of my original long-term apartment syndication goals: $1 billion under management. A large por- tion of that $1 billion (a little under $300,000,000) was added in 2020. At the same time, the podcast I creat- ed, Best Real Estate Investing Advice Ever, and the Best Ever brand in general, continues to thrive. Both accomplishments were truly a team effort, and they required con- stantly evolving and employing new ideas to stay at the top of our game. Here are the five ideas we’ve imple - mented in our business in the past 18 months to continue to grow our syndication business and the Best Ever brand. 1  PROTECT YOURSELF FROM THE BIGGEST LIABILITY YOU’RE

(emails, investment summaries, PPM, operating agreement, sub- scription agreement, etc.) and entities. They will also ask their attorneys questions as they arise. The liability is due to the questions that aren’t asked, which puts them at risk. OUR SOLUTION: Hire an in-house compliance person. This is a legal expert who knows what questions to ask to cover your blindside. 2  BRING THE BEST OUT OF YOUR TEAM. When you are starting a new compa- ny, it is usually just you, your busi- ness partner, and maybe a few other people, like virtual or executive assistants. Job duties aren’t very defined since everyone is wearing a lot of hats. Eventually, as you begin to grow, you bring on more team mem- bers and roles and responsibilities become more defined. When it is just you and your busi- ness partner, compensation is usu-

ally tied directly to the number and size of deals completed. But once you bring on salaried employees, how each team member’s perfor- mance impacts the success of the business begins to blur. Also, their compensation isn’t directly tied to the number or size of deals. As a result, what motivates you and your business partner/s isn’t the same thing that motivates your salaried employees (i.e., the number and size of deals). OUR SOLUTION: Create a single key performance indicator (KPI) for each team member. That way, they know exactly what is expected of them and are motivated to exceed that KPI to receive a bonus. 3  ENJOY BETTER DEAL FLOW, DELIVER BETTER AND MORE STABLE RETURNS, AND CREATE MORE SANITY. Most, if not all, syndicators start off raising money for individual deals. They usually have a list of passive investors who have previously invest-


For 99 percent of syndicators, the biggest liability is compliance. Sure, they work with attorneys to cre- ate their investment documents


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