How do you get started on finding the right people to sponsor your deals? What characteristics to look for? And how to interview a sponsor before making a deal? In this #HIghlights episode, we look back at our conversations with serial entrepreneurs Sunny Shakhawala and Ramana Korada, and they answer these questions!
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Sunny talks about the things he looks out for when investing in syndication, such as track record, current assets under management, and deals taken through the life cycle. Meanwhile, Ramana Shares what that looks like as far as fundraising, underwriting, communications, exiting out, and building relationships with brokers and sellers. Click the play button now and invest in the right deal today!
Key Points From This Episode:
- The key things to look for when investing in a syndication
- How first-time syndicators with no track record can secure a deal.
- The four conversations to have with a syndicator.
- What you can go to get proof of ownership.
- How the process unfolds after the offer has been made.
- How Ramana went from IT to investing in strip malls and then multifamily syndication.
- Some of Ramana’s successes, such as hitting 11 syndications with 2,700 units.
- A consideration of fundraising issues in Ramana’s 280-unit Arlington property.
- How Ramana used underwriting to boost investor interest in the 280-unit.
- Ramana’sbusiness principles: no selling, clear communication, and clear expectations.
“I think the absolute most important thing that a deal sponsor can show you is a track record.” – Sunny Shakhawala
“as you grow your business and as you have more time in the game, you can start recapturing that value. But if it’s your first time, I think you’re just going to have to – I mean, there are probably multiple ways to do it, but I think giving more value to the investor is one way.” – Sunny Shakhawala
“Because what people may not understand is what you might not understand before you invest your money is: it’s kind of like a marriage, right? You’re going to be in this type of situation with this person for the next five to seven years. So you want to be sure that you are getting the communication that you require and if they’re not providing it then just move on to the next person.” – Sunny Shakhawala
“To keep the underwriting very attractive and conservative for the investors, we didn’t include a lot of other income opportunities in the underwriting in the first place.” – Ramana Korada
“Of course, as I said, brokers represent the seller. There are a lot of syndicators and institutional partners looking to park their money in this multifamily asset class. So you have to compete with more folks than you would think.” – Ramana Korada
Links Mentioned in Today’s Episode:
About Sunny Shakhawala
Sunny is a serial entrepreneur, currently focused on managing a 45-unit commercial asset as well as building out a private money lending business. Sunny has grown his lending business from $100,000 in loans originated in 2016 to over $2,000,000 originated in 2018. He invests the bulk of his profits from both businesses into multifamily syndication with a select few trusted partners. Each deal sponsor specializes in a different market and asset class, which provides diversification in location, tenant base, and deal life-cycle.
About Ramana Korada
Ramana Korada is the co-founder and managing partner of Raven Multifamily which acquires B and C-class multifamily assets in landlord-friendly and growth markets. Raven Multifamily syndicated 2700 units in three different markets in the last 3.5 years. Ramana Korada is passionate about adding value to investors as well as providing a safe, clean environment for tenants
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