Are you looking to invest in the real estate markets as a limited partner?
One of the important pillars of real estate investing is the sponsor. Are you sure that you are looking at the right investment partner? Say no more. Tune in to this podcast episode!
In today’s podcast episode, we interview Jason Yarusi, Managing Member of Yarusi Holdings, Multifamily syndicator and Mentor. Today’s topics are focused on the most important component of real estate investing which is the sponsor, hot tips on how to find the right sponsor to trust, and how to maintain and build relationships across the broad spectrum of brokers, general partners, and banks as limited partners find the best way to make their money work for them.
Real Estate Investing Pillars: The Sponsor
One of the important aspects of real estate passive investing is to find the right sponsor. The sponsor is the one who is going to find a deal, structure it, put it together, carry out the business, and hopefully create a great investment opportunity for us as a limited partner. Therefore it is a crucial skill for a limited partner to find the right business partner.
How to Find the Right Sponsor to Trust?
In order to save a limited partner from financial stress because investing means committing your money for at least 3 - 7 years, Jason has given hot tips to find the right sponsor to trust.
- You need to ask yourself about your ultimate goal in investing. (cash flow, tax advantages, forced appreciation, timeframe for investing, inflation hedge)
- Where do you want to invest (primary, secondary, tertiary markets). Finding the most suitable market for you will help you with your due diligence.
- What is the sponsor’s track record? This includes their current and past success in the said business venture. This is extremely important since it could be a double-edged sword in the long run.
- Are you agreeable to their business plan? Does their business plan make sense to you? It only makes sense that you have a sense of alignment to a sponsor’s business decisions since it is your money that they are using to run the business.
Maintaining and Building Relationships and Teams
The debt market currently is filled with uncertainty and pessimism. It is certainly hard to pencil out deals in the real estate markets now. That is why it is very important to build and maintain relationships with bankers, brokers, insurance partners, find suitable people on your team whether it's your in-house team or external team, underwriting, asset management, due diligence and capital raising. No man is an island. People need people. And when opportunities arise, it would be much easier as a sponsor to pencil out deals.
Who is Jason Yarusi?
Jason is an active Real Estate Syndicator and Real Estate Investor. Jason and his wife Pili founded Yarusi Holdings, a multifamily investment firm with over 2000 units acquired since 2016. The firm repositions properties through operational efficiencies, moderate to extensive renovations and complete rebranding.
Jason also hosts The Multifamily Live Podcast, a podcast that provides actionable content and tools to build and strengthen your multifamily business. Jason is founder of the New Jersey Multifamily Live Club with over 2,500 members that focuses on Real Estate Syndication and Multifamily Investing and trains others on the success formula to buying apartment buildings at www.7FigureMultifamily.com.
- LinkedIn— https://www.linkedin.com/in/jasonyarusi/
- Website— www.yarusiholdings.com
- Facebook— https://www.facebook.com/JYarusi/
- Instagram— https://www.instagram.com/jasonyarusi/?hl=en
- Twitter— https://twitter.com/jasonyarusi?lang=en
Visit us here at: https://www.thelimitedpartner.com/
If you'd like to say hello, you can find Jake at @JJakeWiley on Instagram and Twitter, and on LinkedIn.
You will hear quite a bit of real estate terminology in every episode. We've aggregated the most common questions for you in the link below!