How to Buy Property Like Donald Trump, i.e. Syndication 101<br />
About Spyglass Partners<br />Spyglass Partners is a Utah based company that acquires and manages commercial multifamily pr...
The Spyglass Partners Team<br />Scott Eliason<br />About Spyglass Partners<br />- Responsible for Finance Functions<br /><...
 B.S./MBA in Accounting From University of Utah
 Married with 4 children </li></ul>Lee Gientke <br />- Responsible for Marketing Functions<br /><ul><li> Lead Generation a...
B.A. in History from University of California
Avid Golfer, Crossfitter and Bikram Yoga practitioner  </li></li></ul><li>About that Trump Guy…<br />In dissecting the tru...
 Identifying Deals
Owning Small Pieces of Large Deals
 Marketing </li></ul>Syndicating Real Estate Is Just That… <br />About Spyglass Partners<br />
What is Syndication?<br />Simply defined, syndication is the pooling of money from multiple sources to acquire an asset. T...
Syndication is Awesome! <br />Syndication is awesome because it enables: <br /><ul><li> Investors of all sizes and experie...
 Buy larger assets than we could with our own money
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Spyglass REIA Deck

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Spyglass Partners presented at the Salt Lake City Real Estate investor\'s Association about real estate syndication.

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Spyglass REIA Deck

  1. 1. How to Buy Property Like Donald Trump, i.e. Syndication 101<br />
  2. 2. About Spyglass Partners<br />Spyglass Partners is a Utah based company that acquires and manages commercial multifamily properties in emerging markets located in the Western United States. <br />We embrace a conservative investment strategy - only acquire properties that cash flow from day one and have distinct opportunities for the value to increase including: <br /> -Momentum play<br /> -Poorly managed<br /> -Low rents<br /> -Other income opportunities<br />About Spyglass Partners<br />
  3. 3. The Spyglass Partners Team<br />Scott Eliason<br />About Spyglass Partners<br />- Responsible for Finance Functions<br /><ul><li> Twenty plus years in executive finance positions
  4. 4. B.S./MBA in Accounting From University of Utah
  5. 5. Married with 4 children </li></ul>Lee Gientke <br />- Responsible for Marketing Functions<br /><ul><li> Lead Generation and Online Marketing Expert
  6. 6. B.A. in History from University of California
  7. 7. Avid Golfer, Crossfitter and Bikram Yoga practitioner </li></li></ul><li>About that Trump Guy…<br />In dissecting the true Trump, one will notice that his wealth and true brilliance comes from: <br /><ul><li> Creating/Structuring Partnerships
  8. 8. Identifying Deals
  9. 9. Owning Small Pieces of Large Deals
  10. 10. Marketing </li></ul>Syndicating Real Estate Is Just That… <br />About Spyglass Partners<br />
  11. 11. What is Syndication?<br />Simply defined, syndication is the pooling of money from multiple sources to acquire an asset. The syndicated asset can literally be anything. Our focus and specialty is large apartment complexes. <br />About Spyglass Partners<br />
  12. 12. Syndication is Awesome! <br />Syndication is awesome because it enables: <br /><ul><li> Investors of all sizes and experience levels to participate
  13. 13. Buy larger assets than we could with our own money
  14. 14. Manage the manager, not backed up toilets or tenants
  15. 15. Numbers matter:
  16. 16. Reduced Risk Despite Larger Size
  17. 17. Vacancy Rates (Difference between SFR and larger property)
  18. 18. Economies of Scale (100 units can be under one roof, etc)
  19. 19. Easier to finance!
  20. 20. The owner’s credit typically doesn’t matter
  21. 21. Small increase in larger property results in larger dollar returns
  22. 22. Less Competition
  23. 23. Many investors lack know-how or guts to buy larger properties
  24. 24. The 20-100 unit property size is a unique market because of this</li></ul>About Spyglass Partners<br />
  25. 25. Participating in a Syndication as the Syndicator <br />Syndicators have great responsibilities:<br /><ul><li>Are responsible for finding the dealand investors
  26. 26. Responsible for legal hurdles – syndications are treated as securities and typically require expensive legal work
  27. 27. Most syndication docs start at $5K PER DEAL!
  28. 28. Responsible for ultimate success/failure of the deal </li></ul>But Get Great Rewards:<br /><ul><li>Get percentage of the equity (including cash flows) with little of their own cash (but lots of time!) into the deal
  29. 29. Receive Either flat fee or percentage – property dictates how this works. Typically not less than 20% but 25% is typical.
  30. 30. Investors like to see minimum 5-10% of your skin in the game
  31. 31. Collect standard fee on close for putting together – Called “Acquisition Fee or “Expense Reimbursement”
  32. 32. Typically 3-5% of purchase price
  33. 33. Collected at close</li></ul>About Spyglass Partners<br />
  34. 34. Participating in a Syndication with Private Money<br />Private money investors can participate either through equity or debt<br />Private Money investors get: <br /><ul><li>All the benefits of real estate (tax sheltered cash flows, leverage, appreciation) but no tenants, toilets or tantrums
  35. 35. Above average returns
  36. 36. Spyglass Partners looks to give between 7-10% annual cash on cash returns and 18-25%+ annualized returns upon disposal property for equity investors
  37. 37. Debt Investors get above average yields but no equity participation (fixed return)
  38. 38. Great way to have a conservative, high yielding investment for retirement accounts
  39. 39. 1031 Eligible! </li></ul>About Spyglass Partners<br />
  40. 40. The Flow of a Syndication <br />About Spyglass Partners<br />About Spyglass Partners<br />
  41. 41. Private Investors Are Secured<br />Myth of syndications is that they are “risky”. While all investments are risky, investors are protected in a number of ways: <br />Claims on cash flows<br />Claims on equity <br />Insurance <br />Operating agreements that allow for removal of managing partners for malfeasance <br />While investors do not have the day-to-day issues of real estate investing to deal with, they are investing in real estate and some of the downsides of real estate come into play such as the lack of immediate liquidity and market cycles. <br />About Spyglass Partners<br />
  42. 42. Commercial Interruption <br />We are always looking for partners. If you are interested in learning more about what we do, how we do it and how you can participate, please fill out the contact form and we’ll get in touch with you.<br />About Spyglass Partners<br />
  43. 43. Contact Us<br />About Spyglass Partners<br />Scott Eliason<br />scott@spyglassrealestate.com<br />(801) 319-8881 (cell) <br />Lee Gientke<br />lee@spyglassrealestate.com<br />(805) 455-7415 (cell)<br />
  44. 44. About Spyglass Partners<br />Questions? <br />

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