Getting started in apartment syndication can be extremely overwhelming.
Whether it’s the sophisticated terminology, the underwriting process, learning the return metrics, or the process of researching a market, it doesn’t take long before this type of investing strategy feels out-of-reach for a beginner.
Most people feel as though there are only two paths to getting started in syndication: either by finding a mentor or by paying a lot of money to join a high-level mastermind or coaching program.
Unfortunately, there are major hurdles with both approaches.
First of all, when it comes to finding a mentor in apartment syndication, if you have no prior experience, you are a significant liability for a syndicator—your prospective mentor—to take on. If you brought a deal to the table and it went south, the syndicator’s reputation can be damaged.
A syndicator’s track record is a big factor in their ability to bring on financial partners. If you make a rookie mistake while you’re under their wing, the negative impact can be a lot more costly than simply losing a deal. We’re talking about a large-scale, long-term ripple effect here.
On the other hand, when joining a mastermind group or coaching program, the cost of education in this space can be INSANE! For example, one mastermind group I was considering had an upfront cost of $35,000 with a $10,000 annual renewal fee. And the worst thing is that the price range isn’t out of the ordinary either—I’ve seen these types of coaching programs run as high as $50,000!
These programs definitely have a lot of value, but at the end of the day, most people can’t afford them, financially or otherwise.
Luckily, I’ve found a solution to this problem!
After spending over a year in research, reading several books, taking several courses, and attending several events related to apartment syndication, I’ve found a path to getting started that only requires one course and two books.
1. Kyle Marcotte’s Multifamily F.I.R.E. Accelerator Course ($2,096)
Kyle Marcotte has a knack for making complicated subjects simple and easy to understand.
While taking his course, I can’t tell you how many times I found myself thinking,
“AH! That’s what that term means—now it finally makes sense!”
For me, this course was where it all “clicked.”
All things considered, this is the best educational product I’ve found on apartment syndication. The way the course is laid out is exceptionally intuitive and breaks down the process for your first deal in the most systematic way I’ve ever encountered.
One of the biggest values you get when you join The Multifamily F.I.R.E. Accelerator is that you’re essentially joining a mastermind, without the tens of thousands of dollars it typically costs to do so. For example, if any student brings Kyle a deal, his team will analyze it, and if all looks good, they will personally walk them through the deal, from start to finish.
This is an insane value, and it’s a big part of why people spend so much to join a high-level mastermind or coaching program. You get this same benefit for a fraction of the cost with this course—I was blown away by how much value this course has to offer!
Also, Kyle is a pretty inspirational person (he did his first deal at 20 years old). If you haven’t heard his story, you should check out his podcast interview here:
The Multifamily F.I.R.E. Accelerator Course made me feel confident enough to begin working toward my first deal, and I couldn’t be more thankful. But, if you’re like me, you shouldn’t stop there. Consider the next one on our list.
2. The Best Ever Apartment Syndication Book By Joe Fairless and Theo Hicks (Cost $55)
The best aspect of the Best Ever Apartment Syndication Book is how practical it is. Joe and Theo break everything down in a way that removes the fear of getting started. In fact, if you have absolutely no knowledge of how apartment syndication works, this is where I recommend you start.
At a high level, the book provides everything you need to know to be successful. It covers major subjects related to apartment syndication:
- Getting started
- Branding yourself
- Building a team
- Conducting market research
- Underwriting a deal
- Due diligence
- How to structure a general partnership
- The business plan
After reading the Best Ever Apartment Syndication Book, you will gain a solid foundation—BUT, if this is all you study, there will most likely be gaps to fill.
In particular, I found that the book’s definitions of terminology were pretty robotic and hard to grasp. I also found I didn’t fully understand how the pay structure broke down to individual roles within a general partnership.
$55 might also seem expensive for a book, but I consider this more like a course. Besides, compared to other resources, the Best Ever Apartment Syndication Book is incredibly thorough and enlightening—it’s better than most courses I’ve taken on the subject!
After reading the book, I still wasn’t confident in underwriting a deal.
Thankfully, that’s where the last book comes in!
3. The Definitive Guide to Underwriting Multifamily Acquisitions, Robert Beardsley ($12.99)
Robert Beardsley starts the book by sharing why he wrote it—he wishes that a resource like this had existed when he got started.
True to that purpose, he lays out everything you’ll need to master the art of underwriting an apartment for total beginners. This book describes everything…
- gathering the correct information from the seller
- running comparables
- running sensitivity analysis
- structuring partnerships
- and more
This book is the best I’ve found on the subject. After you study this, you’ll be confident in your ability to analyze deals!
Another thing that makes this book invaluable is that Robert makes his personal deal analyzer free for download, so you can practice as you read it.
These three resources are all you need to begin your journey into apartment syndication.
Frankly, you don’t need to spend tens of thousands of dollars to join an elite coaching program or some high-level mastermind. If you apply yourself and study hard, these three resources will get you exactly where you want to be. Happy investing!