Highlights

00:00:03 – Introduction and Background: Kim Lisa Taylor introduces the teleconference and Vinny Chopra, an experienced syndicator who came to the U.S. with $7 in 1976 and has since syndicated 26 multi-family properties ranging from 14 to 267 units, controlling 2,300 units and raising over $70 million from private investors.

00:02:38 – Mistakes Rookie Syndicators Make: The main topic of discussion is mistakes that rookie syndicators often make. Vinny highlights relying too heavily on a single ‘whale’ investor who may back out at the last minute or demand unfavorable terms, failing to build and nurture an investor list, and not having a loan guarantor or sponsor lined up. Kim emphasizes the importance of raising money from multiple smaller investors and having someone on the team who can qualify for the loan.

00:09:39 – Building an Investor List and Nurturing Relationships: Vinny and Kim stress the importance of building an investor list, attending events, gathering business cards, and having a system to follow up with potential investors. Vinny shares his approach of using an Excel worksheet to track investor details, contact history, and comments. They also discuss the need to educate investors about new markets before attempting to raise money there.

00:11:43 – Loan Guarantors and Sponsors: Kim explains the need for a loan guarantor or sponsor, even for non-recourse loans, to cover potential carve-outs related to environmental issues or illegal acts. She outlines the differences between recourse and non-recourse loans, and the challenges of obtaining smaller recourse loans from local banks. Vinny shares his experience working with loan brokers and local banks.

00:16:43 – Raising Funds and Managing Timelines: Vinny emphasizes the importance of having sufficient funds for due diligence, legal fees, and other closing costs, as well as managing timelines effectively. He notes that money typically needs to be raised within 60-75 days of the property being under contract, and cannot be touched until the minimum is raised. Kim adds that these upfront costs can be reimbursed from the funds raised after closing.

00:20:25 – Building a Strong Team: Both Vinny and Kim highlight the importance of building a strong team with expertise in various areas, including acquisitions, investor relations, due diligence, loan brokerage, property management, and legal compliance. Vinny likens it to spinning multiple plates simultaneously, emphasizing the need for systems and processes to manage each aspect effectively.

00:29:57 – Q&A Session: The teleconference includes a Q&A session where callers ask questions about involving smaller investors in deals, structuring deals with 1031 exchange funds, and the profiles of typical investors Vinny works with. Vinny and Kim provide insights and advice based on their experiences.