Key Takeaways:

Transcript

The Two Core Jobs of Every Syndicator or Fund Manager

I’ve said it before, and I’ll say it again: there are two jobs for any syndicator or fund manager. Number one is finding investors and number two is finding assets to invest in. This is a blast from the past from when I used to coach syndicators and fund managers on how to start their own real estate syndication funds. The video is about two years old, or maybe a little bit more by the time you’re watching this video. But it goes into a deep dive into what that process looks like in order to find those best markets across the nation.

Identifying High-Growth Markets Using Demographics

Alright, so I wanted to go more into marketing, or market analysis and demographics today. What I did was, I’m gonna switch to it. Good. Right. So what we’re gonna do today is we’re gonna look through some general market analysis that I did. As we talked about last time, my top eight markets are in no particular order: Seattle, Denver, Phoenix, Houston, Atlanta, Columbus (Ohio), Charlotte, and Raleigh. So those were the main markets that I picked out, that we talked about last week by looking at who’s growing the most, and who has the right size of population, so that we’re choosing things that are actually growing, and that would be reasonable for investing in.

Why County-Level Data Matters More Than Citywide Averages

I pulled up a demographic and income profile for the Phoenix area. I actually grew up in Scottsdale, so I know the area quite well. The Phoenix metropolitan service area is actually very, very large. Let’s actually pull it up so I can show you how large it is. When you’re doing demographics or market analysis of anything, you’re always looking at a sample size, and sometimes that sample is ginormous. As is the case here. There is a huge difference between this part down here, and the middle of the city right here. I mean, they’re two very, very different things.

Population, Households, and Income as Market Drivers

So here’s how I kind of look at things. First, I want to say I started at the top. Obviously, I always start with the demographic and income profile, because I care. You know, if we think about what the drivers are, the driver that affects everything is population, right? So population affects your apartments, your office, your industrial and your retail. Then employment starts affecting your office, your industrial and your retail, and then your spendable income affects primarily retail.

Interpreting Income Trends and Growth Shifts

One of the cities that we talked about is Columbus, Ohio. And here I want to talk about household income. Because here I would be a little bit concerned, and I would start doing a little bit more investigating. And then I’m going to show you how I look at it when it compares to Raleigh, which has actually a similar type thing.

Using Psychographic Tapestries to Understand Demand

Now, tapestries are pretty interesting. A tapestry is a technology that came up that’s derived by ESRI. So it is just, a tapestry is another word for a psychographic profile, which basically takes all of the information that exists both in demographics and spending habits and makes predictions about who these people are and what kind of categorized category you could put them into.

Applying Demographics to Investor Messaging

So what that does is that gives you better talking points when you’re talking to your investor about who those people are that are in your surrounding area. So it may matter a lot. If the people in, say, your office building, and all the people around that office building tend to be professionals, you’ve got a pretty good case that this is probably going to be most attractive to your lawyers and insurance agents and things like that.

Why Honest Disclosure Builds Credibility With Investors

Because what I don’t want to have happen is for those negative things that do exist in every property and every situation, I don’t want them to be lied about because then at some point, somebody’s going to find out, and then I’m going to get called on it. And I’ve just lost all my credibility.

Structuring Property Sourcing With Simple Tracking Systems

Alright, let’s say I now want to go through my own mode yet. Okay? Let me open up, just bear with me one second. Figure out how I bring this up. So what we’ve done here, this is a find properties spreadsheet. Now it looks similar to the spreadsheet that I’ve given you before on finding investors. But it kind of lays out the very, very basics.

Three Primary Ways to Find Properties

So I’ve broken down the finding properties into three different things that you should be doing. The first is database. Second is agents. And the third is CIA. CIA stands for commercial information exchange, which is your LoopNet, your Crexi, your CoStar, your Catalyst, your MLS, all those things are your CIAs.

Using Agents and Marketplaces Strategically

The second way is real estate agents. So I’ve advocated before that a great way to find properties is to start talking to agents. It’s probably worth incentivizing them without them maybe being able to take a brokerage fee and double-end the deal.

Tracking Capital Raises From First Contact to Funds Received

So one thing. So this is the last investors, this is the total amount being raised, the price per membership unit, estimated close date. And then we just are starting to list out names. Now these are names from your database, this is names from your sphere of influence.

Why Measuring Progress Prevents Stalled Raises

Just trying to give eyeballs on where you are at any given point. Because, I mean, this is the number that really matters, the number of dollars that are in the bank.

Closing Thoughts on Systems and Consistency

I hope you found that video helpful. My name is Tilden Moschetti. I am a syndication attorney with the Moschetti Syndication Law Group. If we can help you put together a real estate syndication or fund or find capital for your business or whatever it is that you’re looking to use Regulation D for.