Today, I'll discuss my second syndication and how it all came about. I'll share because I believe it's essential for everyone to understand that building great partnerships doesn't happen overnight.
I met my partner for this syndication six years ago at the Real Estate Guys Summit at Sea. I've always emphasized that the expensive events are the best because everyone there is serious about real estate investing; they are industry veterans who want to connect with like-minded individuals. Most veterans avoid rookie events that cost $300 to attend because attendees are typically early in their careers, and many won't pursue real estate investing long-term.
This event marked my first foray into real estate gatherings. My goal was to meet all 200 investors and operators present, and I nearly accomplished that. I exchanged business cards, initiated relationships by inviting some to my podcast, and started quarterly Cashflow game sessions for Bay Area attendees to foster in-person connections. Building partnerships requires sustained effort; merely meeting people once won't yield results. After the summit, I reached out to my partner via email, initially without a response. It took until the following year's Summit at Sea for us to connect during dinner, after which he began responding to my emails. We gradually built a friendship through social gatherings and mutual event attendance.
It's crucial to cultivate relationships over time. Beyond learning about real estate investing, observing partners navigate various situations offers valuable insights. From my partner, I learned about his experiences with past partnerships and his dedication to protecting investors' interests. This aligns with my values, as I prioritize investors' funds over my own. Witnessing his integrity in personal interactions and how he handles adversity solidified my trust in him.
How did this opportunity arise? After six years, my partner approached me about collaborating on a deal. Despite my busy schedule, I accepted, recognizing the alignment with my goals and viewing it as a chance to evaluate our compatibility. I entered without expectations, emphasizing my willingness to defer to his expertise regarding compensation. This approach allowed me to showcase my abilities while demonstrating trust in his judgment.
Working with such a reputable partner was immensely enjoyable. Despite occasional challenges inherent to the asset class, our collaboration was overwhelmingly positive. Our complementary strengths facilitated smooth teamwork; where one hesitated, the other stepped in confidently.
Regarding compensation, we finalized discussions shortly before closing, with my partner proposing a generous split. I initially felt it was overly generous and suggested he retain more. After adjusting, he reiterated his appreciation for the opportunity, attributing his generosity to my demonstrated value and diligence during due diligence.
The ultimate outcome will be revealed upon exiting the deal in 2-3 years. So far, however, our webinar presentation garnered full commitment within two hours, and we secured a $100k discount post-webinar, to the delight of our investors.
I share this not to boast but to underscore the importance of integrity and patience in forging partnerships. Trust in the process and the individuals involved is paramount. Additionally, competence is non-negotiable; excellence breeds opportunities.
In conclusion:
- Great individuals are rare, and integrity sets one apart. Regardless of age or experience, doing the right thing attracts opportunities. I've witnessed this firsthand, partnering with a diligent 20-year-old whose character and work ethic impressed me consistently.
- My partner frequently encounters individuals seeking partnerships, yet most fail to invest in building relationships. Approaching someone out of the blue with partnership proposals rarely succeeds. I echo this sentiment; without rapport and shared values, collaboration is unlikely.
In summary, cultivating genuine connections and upholding principles paves the way for fruitful partnerships.
Send us your feedback about our podcast to: admin@montecarlorei.com