Forge Five: Short, Smart, Simple

Hi All!

It’s safe to assume that you signed up for this newsletter because you want to change your life and kickstart your journey investing in CRE, right?

And if you’re just starting out and looking to learn the next steps you need to take to actually get started, it can seem very overwhelming, especially with all of the great information out there.

If you are ready to take next steps and want to learn about opportunities, get on my calendar so we can talk. HERE

Get ready to dive into the next 5 newsletters, where we'll unveil the 5 mind-blowing levels of success in real estate that you've never even imagined! This series is your golden ticket to discovering the incredible opportunities waiting for you and your loved ones. If you missed this on LinkedIn, I'm thrilled to emphasize it here because it's truly that eye-opening!

PART 3:

There are 5 Levels of Success in Real Estate, that no one's talking about.

So far, I've shared -
1. One Man Band - Residential, small commercial, DIY
2. Syndications, small funds - raising money and doing deals!

Now, Level 3: 𝗜𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝗮𝗹 𝗚𝗿𝗮𝗱𝗲 𝗢𝗽𝗲𝗿𝗮𝘁𝗼𝗿 

Most syndicators or owner/operators never make this transition because they either don’t know it exists or they don’t know how.

There are VERY few mentors/coaches/consultants who can help the very best syndicators and operators make the leap. I do.

Here’s how Level 3 works.

There are many Level 4 real estate entities with big money, but they do NOT want to operate the properties.  That’s too much work and staff.

Better for them to do a Joint Venture (JV) with an institutional grade operator who does the grunt work.

These institutions seek top-tier operators to partner with and write a big check.

When I say “big” check or "ticket", I mean nothing less than their set minimum.

The smallest equity I’ve seen Level 4 groups spend is $5M.

Most only want to do $10M, $20M, or $50M equity checks to their operator.

Sound like a scam?

It’s not.  It’s a problem.  There are more big institutions with money than there are trusted institutional-grade operators.

What are the pros and cons?

🤠 Pros of being an Institutional Grade Operator
• 90% of the equity on every project is typically filled by 1 institution or family
• Your 10% of the equity receives an astronomical return.  Think 7x - 12x, or better
• The institutional partner will typically have their own asset managers to help you manage the asset.  Teamwork makes the dream work.
• Institutions want programmatic relationships, not one time good deals.  Meaning, they will fund your next deal and your next deal and…

😱 Cons
• If you don’t have the 10% equity for each deal, no deal.  Hence the secret co-gp funds 🤫 that I'll share later.
• You take on all of the risk (zero GP risk to the institutional partner), but that’s what you get paid for
• Screw up the deal, or do well but screw up the relationship, and your future just got more difficult
• JV’s partners want control without risk, so they will inf

Pro Tips:
• If you aren’t vertically integrated with property management, you probably won’t close an institutional partner.

Have you ever heard of this before?  Let me know at either my Facebook or LinkedIn.

If you are ready to take next steps and want to learn about opportunities, get on my calendar so we can talk. HERE

To your success,
Ryan

NOTE: This 5-part series is from Sam Sells of SyndicationLaunch.com.