The FORT Podcast: 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!
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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 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
The FORT with Chris Powers is produced by Straight Up Podcasts