WS35: Systems and Processes That Can Help Real Estate Syndicators Push up Their ROI with Josh Sterling

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Summary:

In this episode, Whitney interviews Josh Sterling, Owner, Epic Property Management. Josh reveals how operational efficiencies and well structured financing can help syndicators achieve high returns on their investments. What is a good debt arrangement for a syndicated deal? Can good deals allow syndicators to triple their investment in just over a year? What is the best way to increase the value of a syndicated property? Tune to learn from one of industry’s best.

Time Stamped Show Notes:

00:28 – Whitney introduces Josh Sterling to listeners
01:16 – How did Josh transition to real estate syndication?
02:28 – Josh shares details of his first multifamily investment
03:23 – How did Josh find his first deal?
04:30 – Having good insights into the syndication business is a MUST for raising capital
05:34 – Why did Josh opt for seller financing on a recent deal?
06:12 – Was Josh nervous when he ended up doubling his unit count after his recent acquisition?
07:26 – Josh realizes the need for good property management
08:36 – Discussing the need to use a good management software
09:12 – A minute thing like poor key control can end up costing a syndicator a lot of money
10:21 – Learn how Josh managed to turn his $120,000 investment into $350,000 in just 14 months
11:28 – What is agency debt? Josh provides us a “peek” into a typical debt arrangement for a syndicated project
12:27 – What did Josh do after walking away with $350,000 on his deal? Learn how investing in common amenities can create tremendous value in syndicated deals
14:13 – Does Josh prefer to own 100% of a property? In case he needs to syndicate, what percentage of equity does he give up?
15:25 – Reasons why Josh prefers a 70:30 split for his syndication deals
17:20 – Are investors savvy enough to negotiate IRR?
19:48 – What is the #1 thing that has contributed to Josh’s success?
20:16 – Some great resources to deepen your understanding about the syndication business
21:13 – What is the top reason that syndicators fail?
22:11 – What advice does Josh have for syndicators who are just starting out?
23:02 – What is an important and expensive lesson that Josh learnt from his early dealings? We discuss how negotiating pre-payment penalties can save you a lot of money
24:33 – Josh shares his contact information
[spp-timestamp time=”25:06″] – A special thanks to our sponsor, Life Bridge Capital