NUTS & BOLTS
RAISING MONEY
Tom Wilson’s Real Estate Radio Power Investing. These have all opened doors to a new audiences and new investors for us. Syndicating is an extremely intimidating concept for many real estate investors, in large part because it relies heavily on your ability to network and make connections. As you can see, however, this networking is not complicated; it just requires dedication and effort. You will find that the process “takes off ” much more quickly than you expected if you are willing and able to dedicate a certain amount of time to the process of building up your investor base, finding good deals, and expanding your network of helpful associates. •
REAL ESTATE SYNDICATION: When investors pool financial and intellectual resources to invest in properties and real estate projects larger than the could afford or manage on their own, they are practicing real estate syndication.
their desired returns, and other benefits they want or need, such as tax protection. We ask them where they dream of being in 10 years. We want to help them achieve their dreams, and we want to present opportunities that will get them there faster. When we do that, we achieve ours faster as well. When we find a property that is a good fit for a certain group, we send an email to that targeted list. We gauge interest, and then get on the phone with interested investors personally to discover if it truly is a good match.
Monick Halm holds a law degree fromColumbia Law School, is the author of the Real Estate Investor Goddess Handbook, host of the podcast Real Estate Investor Goddesses, and has been actively syndicating real estate deals for more than a decade. She and her husband ownmore than 1,000
3 Simple Secrets to Effective Real Estate Syndication RAISING MONEY TO DO BIG DEALS DOES NOT HAVE TO BE COMPLICATED.
rental doors. She may be reached at monick.halm@gmail.com.
SECRET #3: REACH OUT TO EXISTING INVESTOR GROUPS AND CREATE COMMUNITIES
Of course, to raise money, you must be able to reach a pop- ulation of investors who want your services, access to your deals, and the benefits of your expertise. Beyond our imme- diate circle of friends and family, there are three main ways investors have found us: First, we speak at and attend many different investor net- working events around the country. Being on stage definitely works for meeting investors, but even being in the audience and networking has led to great and lasting relationships. At this point, I would say we have met the majority of our inves- tors in this manner. Second, I have an online community for women real estate investors, The Real Estate Investor Goddesses. I also have a podcast by the same name and a book called The Real Estate Investor Goddess Handbook. After finding me through the group, podcast or book, different investors (mostly, but not exclusively women), have reached out to be included in our investor database. Third, we have been guests on many podcasts and radio shows. Between my husband and I, we have been featured on The Real Estate Guys ™ Radio Podcast, Joe Fairless’ The Best Real Estate Investing Advice Ever Show, Reed Goosens’ In- vesting in the U.S. - An Aussie’s Guide to U.S. Real Estate, and
by Monick Halm
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SECRET#1: ESTABLISHMEANINGFUL, BENEFICIALRELATIONSHIPSWHEREVERYOUGO We find some of our properties through relationships with agents and brokers. We also have acquired many great deals through relationships with other investors and syndicators. Some- times, we partner with them. Other times, something that is not a good fit for our group might be a good fit for someone else’s and vice versa. We’re all happy to share information with each other to get more deals done and more money made. Of course, don’t let all that relationship building cause you to for- get to do the most straightforward lead generation of all: look where the properties are listed. We recently found two of our properties on Loopnet, an online commercial real estate marketplace. SECRET #2: GET TO KNOWYOUR INVESTORS A good, informed relationship with your investors and po- tential investors will help you promote the right properties to interested parties, thereby getting funded far more quickly! We take time to get to know each of our investors and truly understand what they are looking for in an investment. We find out what asset classes they prefer, their risk tolerance,
y husband and I are real estate investors, but we do not just invest for ourselves. We work with and for groups of investors who know that real estate is the best place for their investment capital. Those with whom we work with trust us to locate good deals and then follow through on the investing strategy to make those deals and returns happen. I’m often asked how we make this process work for us, so I’ve created this list of three important “secrets” you need to know to get started in effective real estate syndication. Before you get started, though, it is important to understand the legalities and ethics of syndication. Above all, remember this: When you are handling other people’s money, you have legal and moral obligations to do things correctly. Above all, remember this: When you are handling other people’s money, you have legal and moral obligations to do things correctly. These simple “secrets” are not really secrets at all, but many investors cannot believe that the foundation of the process is not more complex. Here’s a hint to start with: Don’t make things harder than they are!
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