If you want to take advantage of high-value real estate with high returns, then diving into multifamily syndication is something you should consider doing now. In this Highlights episode, we feature once again our conversations with Danny Randazzo of Randazzo Capital and Dan Handford of PassiveInvesting.com.
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Danny discusses how a solid educational foundation and goal-setting helped him find success in real estate syndication. Meanwhile, Dan talks about the three criteria for you to consider when you’re looking at investing passively in syndication. Listen now and find ways how you can thrive in the business!
Key Points From This Episode:
- How did Danny transition to the syndication business? Learn how Danny sold everything he had and moved across the country to get his business going.
- Resources that gave Danny the confidence to venture into multifamily syndication.
- Should you get your wife on board to help you out with your syndication business?
- How did Danny find his first deal?
- Danny shares how he analyzed his first deal
- Dan gives three tips for investing passively in multifamily syndication.
- Some questions that investors should be able to ask a sponsor or syndicator about the leverage or the debt.
- How much is the ideal reserve for multifamily business?
“We wanted to have a lifestyle that we love. We like to have a lifestyle that we don’t have to need a vacation from. And for us, it heavily revolves around real estate and having multiple streams of income coming in that we can control, still.” — Danny Randazzo
“Real estate, for me, meant kind of the basics: you own an asset, you collect income from it, you need to make sure that the income covers the expenses and covers the debt service, and you should have some left over each month to put into reserves or to put into your pocket, your cash flow.” — Danny Randazzo
“One of the things that you have to look at is when you’re looking at a deal that you’re going to invest passively, where is that leverage component? Where does it land? In most situations, I would say you want to stay around 75% or lower. In certain situations, when you look at them, depending on the asset, it would be okay to go a little bit higher.” — Dan Hanford
“The worst thing you can do in syndication is you can lose a bunch of people’s money, but when you start to do capital calls, that definitely impacts your investors quite a bit.” — Dan Handford
Links Mentioned in Today’s Episode:
About Danny Randazzo
Danny and his wife sold everything they owned in the summer of 2016 and relocated to Charleston, South Carolina to build a real estate portfolio. Randazzo Capital made its first investment purchase in the winter of 2016, buying 2 commercial buildings for $1,000,000. Since then, Randazzo Capital has utilized strong investor and lender relationships to purchase another $1,000,000 commercial building, a short sale renovation project, a 4 unit residential rental, a 2 unit residential rental, and 2 beachfront foreclosures. The company controls over $8,000,000 in commercial and residential real estate.
About Dan Handford
Dan and his wife, Dennae, along with their 4 children (3 girls and a boy), reside and work in Columbia, SC.
Dan has an extensive successful background in starting multiple seven-figure businesses from scratch including a large group of non-surgical orthopedic medical clinics located in South Carolina. His family of companies has annual budgets in excess of $10MM.
He is the founder of the Multifamily Investor Nation where he educates a nationwide group (9,000+ members) of multifamily investors on how to properly invest in multifamily assets.
He is the co-host, along with his wife, Dennae, of the Tough Decisions for Entrepreneurs podcast which can be found on iTunes and Google Podcasts.
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