Podcast: The Real Estate Syndication Show
Episode Number: WS894
Episode Title: Why Your First Deal Cannot Struggle with Ken Gee
Host: Whitney Sewell, The Real Estate Syndication Show
Guests: Ken Gee, Founder & Managing Member, KRI Partners
Why Your First Multifamily Real Estate Syndication Deal Cannot Struggle
With over 20 years of experience in real estate syndication, Ken Gee sits down with Whitney Sewell on The Real Estate Syndication Show to discuss the many facets of a successful first syndication. This in-depth podcast is full of helpful industry tips and insight for newer investors. Learn more and listen in to the conversation here.
In this episode they cover:
- How to prepare for your first multifamily syndication
- What passive investors should expect from a Syndicator
- How to underwrite your first few deals
What Makes a Successful Private Equity Syndication Firm
The success that KRI enjoys today actually became possible because of what the private equity syndication firm has been doing over the 20+ years that it has been in business. If you are new to the multifamily real estate investing business, it is critical that you do what is necessary to become successful over the long term. It is very difficult to look at this business on a short-term basis and expect to be successful. Everything must be done with a long-term view.
For example, Ken spent almost eighteen months preparing and learning as much as possible before investing KRI's first real estate deal. During that time, he found mentors, subject matter experts, and he networked as much as possible to try to learn from industry experts already in the business. He then spent his own money on his first 5 to 10 deals until he was confident that he understood how to make money in the real estate business before soliciting investors to invest alongside him and his firm.
In the podcast, they also talk at length about what needs to be done to properly underwrite a deal. Ken emphasized the fact that relying on market averages and other “back of the napkin” type analysis would only prove to insure failure. The pair also talked a lot about doing everything possible to learn as much as possible all along the way. It is that knowledge, and only that knowledge, that will make you a confident real estate investor, especially when talking to potential investors.
Finally, passive investors could also benefit in a big way from this podcast because they discuss what a syndicator needs to do, and to be able to demonstrate, to a potential investor. Passive investors should take the time to make sure they vet sponsors thoroughly before giving them money. Let new Sponsors cut their teeth with someone else’s money!
The podcast is only about 25 minutes long and contains a lot of “real world” advice.