Our guest, Brian Hamrick, has lots of experience in the world of syndication, but the focus of today’s show is on funds, his latest venture. Although he generally prefers syndication, there are particular circumstances under which it makes more sense to go with a fund, and Brian passionately shares how you can successfully create your own one. We discuss the differences between a fund and a syndication, along with the similarities between the two.
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Brian highlights the fact that returns from funds will always be different and that it is so important that you and your investors are on the same page. Don’t make promises that you can’t deliver on because investors are putting their trust in you as the operator, and you don’t want to jeopardize that. Brian shares the types of issues that can arise with a fund and how he overcame his biggest challenge, as well as his positive forecast for most real estate sectors in the coming months. Tune in today to hear all this and more!
Key Points From This Episode:
- Brian shares his past experience, as well as his latest venture which he focuses on in this episode.
- The differences between a fund and a syndication.
- Some key elements that should be considered when putting together a fund.
- Make sure that you understand the expectations of your investors and they understand yours.
- Returns are always different.
- Brian explains some of the different methods used by funds.
- It is vital to get your marketing right; sell yourself but don’t overcommit and not be able to deliver.
- The biggest challenge faced with Brian’s fund and how he worked through it.
- How the value of shares in a fund can change.
- Soft commitments versus hard commitments and why you want to identify assets before bringing in the money.
- Brian prefers syndication but he explains the circumstances which would make a fund a better choice.
- Paying out investors out with investors’ money; you need to be paying out from the asset.
- Examples of ways to make money as an operator of a fund.
- Thoughts on what is going to happen to different real estate sectors in the coming months.
- The key to success: finding the right partners!
- By the time you listen to this Brian will have released a white paper which will be very helpful to those looking to start a fund.
[bctt tweet=”The returns are always different. You talk to 10 different fund operators, you’re going to get 10 different answers. — Brian Hamrick” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Brian Hamrick
Brian Hamrick controls over $32 million in apartment, self-storage, and office commercial real estate, as well as performing & non-performing notes. He has raised over $9 million from investors through syndications and funds, and he also hosts the “Rental Property Owner & Real Estate Investor Podcast.”
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