The Essential Team Members for a Vertically Integrated Multifamily Syndication Firm

A vertically integrated multifamily syndication firm requires a diverse and skilled team to successfully manage various aspects of the business. Contrary to popular belief, a small team (5-10 team members) can manage hundreds of millions in real estate so long as the systems and processes are in place. However, what complicates the operations of a syndication firm is when they manage their own properties. Property management is a very hands-on business and requires significant manpower to successfully operate. That said, in this post we will cover the essential team members for a vertically integrated multifamily syndication firm. I’ll note that I’ve left out a number of roles such as legal council, acquisition specialists, marketing manager, and more. I did that because the responsibilities of those roles can be or are often rolled up into one of the others or because the role is easily outsourced.

Our company, JP Acquisitions, is a vertically integrated multifamily syndication firm. We focus on acquiring multifamily properties which have the potential for strong risk-reward returns for our investors. Our property management team then manages our assets to ensure that our business plan is being executed and the residents of the community remain pleased with our services. 

Note – The definitions of the technical terms in any of our posts can be found in the glossary section of our website.

The Team

1. Principal/Founder: The person(s) who founded the company are critical to driving the strategic vision of the company. The principal is responsible for decision-making and acting as the leader. They provide guidance to the entire team and influence the moral and spirits of the team.

I’ll note that in certain cases there may be multiple founders and they may operate in unison, while in other cases it may be a single founder alongside various managing partners. There are other ways of structuring a syndication company but that is outside the scope of this post. 

2. Asset Manager(s) (AMs): Asset managers in multifamily syndications play a critical role in overseeing the performance and value enhancement of the acquired properties. Their responsibilities are diverse and focus on maximizing returns for investors while ensuring the efficient operation of the multifamily assets. Asset managers regularly monitor the various KPIs associated with running properties such as rental income, expense ratio, DSCR, and more. Additionally, they will manage project budgets, report the performance of properties to the necessary parties, participate in the due diligence process, and more. AMs can be thought of as Swiss army knives because of how many skills they have and all of the data that they work with. 

3. Investor Relations Manager:  The investor relations manager is responsible for maintaining regular communication with investors and addressing any concerns they may have. Whoever is in this role is typically someone who is outgoing and has strong communication skills. If you’ve ever set up an introductory meeting with a syndication firm, it’s likely the person in this role that you’ve spoken with. Sometimes this individual will coordinate investor distributions.

4. Property Managers: Property managers in a multifamily syndication are responsible for the day-to-day operations and overall well-being of the acquired properties. It cannot be stressed enough how important property managers are in the execution of a business plan. Their duties include overseeing tenant relations, lease administration, and ensuring the physical and financial health of the assets. Property managers are tasked with implementing leasing strategies to maintain high occupancy rates, conducting regular property inspections, and addressing maintenance and repair needs promptly. They play a crucial role in rent collection, expense management, and budget adherence. Additionally, property managers may collaborate with asset managers to execute strategic plans for property improvement and value enhancement.

Conclusion

Having a well-rounded team with expertise in real estate acquisitions, property management, budgeting, leadership, and more will help ensure the success of a vertically integrated multifamily syndication firm. I’ll reiterate here that the specific roles and team composition may vary widely based on the size and structure of a firm. 

If you have any questions regarding the terms and concepts in this post or previous ones, please reach out to either me (tedi.nati@jpacq.com) or someone on our team so we can help explain further. If you’re interested in investing with us at JP Acquisitions, you can contact us via our contact form, by emailing a member of our team, messaging us on LinkedIn, or signing up for our investor portal to set up a meeting.

As always, I hope you enjoyed reading this post as much as I have writing it. Best of luck!