This week we Tyler Sheff meets Joe Fairless who is essentially the John Lee Dumas #JLD #EOF of the real estate business. Joe is the host of “Best Ever Real Estate Investing Advice Ever” a DAILY podcast for the the estate industry for the last two years.
Joe’s expertise is in multifamily syndication which essentially means he is an expert in building and managing teams of people to facilitate acquisition, stabilization, and repositioning of multifamily assets for his investors.
Joe is also the author of “The Best Real Estate Investing Advice Book Ever” which is available on Amazon.
Joe says that to be successful in syndication it is helpful to have a background in Real Estate Investing or at least a background in business.
Tyler asked Joe about tips on how to increase your credibility as an investor to which Joe recommends partnering with a management company or more experienced party on your first few deals to build confidence as an operator or syndicator. By teaming with those more experienced than you others will be more willing to trust your ability to follow through on the deal.
Joe mentions later in the episode that four main documents are included in a typical syndication.
First, a PPM or Private Placement Memorandum is a 100 page (or so) document that informs investors on the risks associated with the particular investment.
Second, an operating agreement is used to document what each party's’ roles and responsibilities are, how the investment will be managed and other important details regarding management of the asset.
Third, an investor qualification document is necessary to comply with State and Federal laws regarding the pre qualification of investors in a syndication.
Lastly, a share agreement or subscription agreement specifically addresses the number of shares sold, and outlines other rules and agreements regarding the ownership and valuation of the shares in a partnership.