AIPIS 129 - Joe Fairless - How to Negotiate Syndicated Deals, Evaluating General Partners

Syndicated deals are complex negotiations between multiple partners or investors. This type of deal has a special title because it involves more than one buyer and sometimes more than one lender. Jason’s guest, Joe Fairless, chooses to invest along with other investors to show his conviction for the preferred deals. He says that the most important rule of investing at this level is to know and trust the other general partners involved in the transaction. Large deals of this nature may net ongoing cash flow or may include opt-out clauses for investors who wish to make their own terms.

Key Takeaways:

[4:01] What “closing the deal” means to Joe Fairless

[6:44] Raising capital for syndication deals

[11:52] Formats, general fees and rules for raising money for specific deals

[17:46] Acquisition fees

[19:45] Asset management fees for the general partners

[20:51] Investing alongside other investors

[22:30] The importance of knowing who you are dealing with

[23:44] Ongoing cash flow

[25:18] Refinancing, long-term debt and tax implications

[27:42] A 5-7 year time horizon between deals, but an investor can opt out early

[30:10] Joe’s daily podcast is “The Best Real Estate Investing Advice Ever”

Mentions:

Hartman Media

Joe Fairless

Best Real Estate Investing Advice Ever

It’s a Whole New Business