As a syndication attorney, I meet a lot of syndication, real estate fund, and investment fund sponsors and managers. As a syndicator myself, I also meet even more.
Now, there are some common traits that go throughout syndicators who are especially successful. Let’s talk about those traits, because maybe they’re traits that you can emphasize or build within yourself in order to be even more successful than you are.
So, what makes a great syndicator, a great sponsor, or an investment fund manager? What are those things? Well, certainly, it’s great leadership. Being able to work with a bunch of people and being able to keep them all on task is paramount. But it really boils down to being a great leader in these organizations.
And I think the most important thing that I’ve ever heard is what a sponsor should be focused on is ensuring that their investors are successful. When you’re working with an investor, it’s not just about you. It’s about them. It’s about their money. It’s about making sure that they get a great return on that investment. If your investors are successful, you’re going to be successful as a syndicator. That’s rule number one: make sure your investors win.
Now, what else do you need to do? Well, the second thing I would suggest is building your professional network. You see, as a syndicator, you’re going to be in touch with a lot of different people, a lot of different investors, and it’s not just about finding the right investors. It’s about finding the right people to help you through the journey, whether it’s an attorney, a consultant, an accountant, or a contractor. All of these people are going to play a role in making your syndication a success. So, build that network.
I often talk about a Rolodex. For those of us of a certain age, we know what that is. For those who don’t, think of it as your contact list in your phone. You need to have that list of people who you can call for help. That’s absolutely critical.
And third, I think, is the need for confidence. You must have confidence in your abilities and in what you’re offering. When you’re talking to investors, they need to see that you believe in what you’re doing. They need to see that you’re confident in the plan and the returns you’re expecting. Confidence is key, and it’s often the hardest thing to develop, especially if you’re just starting out. But it’s something you can build over time by learning and improving your craft.
There’s one more thing that’s worth mentioning: it’s critical to find a mentor or a guide who’s been down the path you’re looking to take. A mentor can help guide you through the challenges of syndication. They’ve made the mistakes, and they’ve learned from them, and they can help you avoid those same pitfalls.
So, in conclusion, to become a successful syndicator, focus on being a great leader, ensuring your investors’ success, building a strong professional network, and developing the confidence needed to navigate this complex world. Combine that with learning from others, and you’ll be on the right track.
My name is Tilden Moschetti. I am a syndication attorney at the Moschetti Syndication Law Group. We help real estate syndicators, businesses that are looking to raise capital, and private equity funds with offerings under Regulation D. If we can help you with your project, feel free to give us a call or visit our website to schedule a time to chat.