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WS102: The Art of Acquiring and Financing a Value Add Syndication with Anthony Chara

real estate syndication, real estate deal, real estate investing

Summary:

Anthony Chara, Managing Member, Apartment Mentors, LLC and founder of Success Classes LLC shares some little-known facts that will help syndicators in the acquisition, capital raising and structuring of a value add deal.

In this show, Anthony shares how persistence and ingenuity can help you discover deals with significant upside.  You will learn how rationalizing expenses can help you unlock hidden value in a real estate property. What are some effective ways of raising large amounts of capital in a short period of time? And what are some restrictions when it comes to raising capital? Structuring operating agreements, paying off investors and loan structure are some other topics that we touch upon.

Time Stamped Show Notes:

  • 00:29 – Whitney introduces Anthony to listeners
  • 01:15 – How did Anthony transition to real estate investing?
  • 02:19 – Anthony reveals the asset classes and markets where he is considering investing right now
  • 02:45 – 2 Most Common Problems that investors face while venturing into the syndication business
  • 03:28 – Anthony points out that investors need not get bogged down by the huge sums of money involved in syndication
  • 04:19 – Importance of a well-rounded education before kick-starting your syndication business
  • 05:29 – Anthony reveals some interesting details about a recent deal that he syndicated in Burlington, Iowa
  • 06:29 – Why did a competitor and a fellow syndicator help out Anthony by giving him a deal?
  • 06:58 – Andrew realizes that rationalizing expenses and management fees could give him significant upside on his investment
  • 07:40 – What findings were made during due diligence that led to revising the property value from 1.8 million to 2.4 million?
  • 08:15 – How did Anthony and his team manage to raise $600,000 in 2-3 weeks?
  • 08:58 – Can folks without a securities license help you with your capital raising? Are there any restrictions
  • 09:35 – Anthony reveals how he can help out with capital raising in spite of not having a securities license
  • 10:45 – How a clawback provision can allow you to drive operational efficiencies in a real estate syndication
  • 13:04 – Anthony explains the structure of his 60 unit deal in Burlington, Iowa
  • 15:15 – How are investors paid off once a deal is closed?
  • 16:04 – How are investors parking their IRA money in syndication paid off?
  • 17:13 – What is the difference between debt and equity partners in syndication?
  • 18:16 – Anthony reveals his loan arrangement comprising of a bridge loan as well as a HUD loan; why is it commercially unviable for Anthony to dispose off the property within 10 years?
  • 19:58 – Why did Anthony opt for an operating agreement that gave an active vote to all investors on all major decisions?
  • 22:30 – Anthony’s advice for real estate investors who wish to venture into the syndication business
  • 24:17 – What has been the most challenging aspect of the syndication business for Anthony?
  • 25:16 – How asking prospects for feedback can help you improve your business
  • 26:57 – What are the important attributes that have contributed to Anthony’s success?
  • 29:21 – Tips and Tricks for improving your investor presentation
  • 32:18 – Why does Andrew make different presentations for different classes of investors?
  • 33:22 – Anthony shares his contact information
  • 34:00 – Schedule a call with Whitney now!
  • [spp-timestamp time=”34:26″] – A Special Thanks to our sponsor, Life Bridge Capital

In this episode, you will learn

  1. How rationalizing expenses can unlock significant value add in a real estate property
  2. How to conduct thorough due diligence to accurately assess the value of a property
  3. How are investors paid off once a deal achieves closure
  4. Debt and equity structure of a real estate syndication

Resources

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1 Response
  1. Cathy H Emmons

    Hi Anthony,
    Has there been any info/status to the investors on Mahogany Bay (Belize)? If so, please let me know where I go for updates. If not, could you let me know what’s going on with the 4-plex?

    P.S. Nice website and congrats on your RE Syndication Show.

    Thanks much,

    Cathy Emmons

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