Author: Kyle Stevie from Northern Kentucky
Note: This is an attempt at a humorous approach to learning syndication that I and many others have taken. This is for education purposes only. Any likeness to real life Greek god like men is completely unintentional. Just because I look like I’m carved from granite doesn’t mean that the story is about me.
“Syndication? Isn’t that like Al Capone and Murder, Inc.? Isn’t it illegal?” said our tall, handsome, incredibly ripped hero, unfortunately, out loud.
And so it began…a phrase (or word) that launched a thousand Google searches. Just as Helen’s beauty caused the fall of the Trojans, so fell his preconceptions of what was possible in Real Estate.
“What in the hell is syndication, Man?”
“I don’t know. I just heard about it on a podcast. You get a lot of guys together, you buy a big apartment building, you make a lot of money. Sounds pretty basic.”
“I love basic and lots of money! I’m going to be a syndicator…today.”
And with that infinite wisdom, our incredibly intelligent, talented, and unprepared protagonist logged into his vessel and began the journey into the vast and wild Interwebz.
Our hero, we’ll call him…Kyle (completely randomly drawn and chosen), looked to the stars of the interwebz sky for direction. The first constellation offered the only clear message that Kyle would receive for some time, unbeknownst to him. The constellation was in the shape of a canned photo of a skyscraper, which seemed strange and oddly descriptive, but who was Kyle to question the stars.
At the bottom of the constellation were the words,
“Syndication allows individuals to pool their money in order to purchase real estate that they could not otherwise own on their own.”
With a new bravado of the naive beginner that he was, Kyle continued on his journey as fates convened. Winds blew crashes of phrases and the rolling of equations, such as “Cap Rate,” “Cash-on-Cash Return,” “Economic Occupancy,” “RUBS” and the death knell to the beginning of Kyle’s journey, “IRR.”
The gusts caused by the IRR blew Kyle’s searching vessel crashing into the rocks. The journey was going to be much more difficult than he had ever anticipated. Luckily, the gods had mercifully intervened and Kyle’s vessel crashed at the feet of steps leading to the great Oracle “Joe,” (again completely randomly drawn and chosen). He soon would not be able to claim lack of preparedness in his journey, but he had a much more daunting education ahead of him than he had ever anticipated.
To be continued….