On this episode, Chris does a deep dive into 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!
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(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 GP’s and LP’s 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 overtime?
(1:18:29) - What's the most surprising thing that investors are interested in?
(1:20:25) - Wrap Up & Contact
The FORT with Chris Powers is produced by Straight Up Podcasts