In this episode, I talk with Tilden Moschetti of Altitude Syndication Founder’s Club. He shares with me the ins and outs of real estate syndication.
Here the excerpt of the transcript:
JMD [00:12:31] OK, and so if somebody wanted to somebody decides, hey, I want to do this syndication thing, it sounds it sounds cool. How would they get started? I mean, obviously, you and I are big believers in having coaches and having consultants that that help us get through the through the weeds and cut straight, straight through the best path. How does your system help people or who would be the ideal person to become the syndicator?
Tilden [00:13:11] So most of the people are going to have a real estate background. It would be probably too challenging without a background in real estate in order to take on the role of being a syndicator. OK, now they could take on the role of being part of a team to do it, which if they didn’t have that background or they could. Certainly, go in and just start investing in syndications as well, but really, it’s the program itself is put together mostly for the real estate professionals. And it it’s different and I think considerably better than the competitors that we have out there, because most of them are not lawyers and most of them are not. There’s a lot of shady goings on in the industry to get there. There’s too many get rich quick schemes because this isn’t to get rich quick scheme at all. It’s not quick and you’re going to make money, are going to make a lot of money. But it’s not quick and it’s not easy. There’s a lot of work that goes into it.
JMD [00:14:23] And that’s true about just about anything. Like unfortunately, sometimes I feel like there’s that perception that when you become a lawyer, you become a doctor. Everybody thinks, oh, and they you get a million dollars to get started on your career. Yeah, that would be nice.
Tilden [00:15:02] So it flattens out their income to make it so that they have that regular recurring income. But one other thing that’s well, there’s two other things that I think are the big benefit. It changes the perception of who that real estate agent is in the community because they’re suddenly go from being seen as kind of like an expense on a buyer and seller. Bottom line. Right. So, when you when you sell a house, you’re you look at that that closing statement at the end of the day and the house is sold and you see that you just pay six percent or five percent of your money out to these real estate agents. And your first thought is probably they didn’t really do that much for it. Yeah. And so, they real estate agents have in the public as you know, a perception of not being of not being the most. I want to be a real estate agent kind of thing when I grow up. It it’s a good path to making money, but it doesn’t have the respect that a lot of people have. And this turns that completely upside down because now suddenly you’re the buyer or the seller of real estate. And so, you’re making deals happen and you’re suddenly adding value into the pot instead of just taking that money away. And so, you know, your phone calls start getting returned right away because the other brokers want to make sure that you close your transaction. You know, you’re suddenly seeing as a money maker rather than just an expense. The other thing that it does that that changes everything is our people. I mean, we chose the name Altitude’s Syndication Founders Club because that idea of being a founder is really important to me. And it’s that entrepreneurial spirit. It’s that it’s that absolute creation of something that not only is about you, but it’s about, you know, building a legacy for yourself, but also for all of your investors. I mean, all of those investors you’re doing, you’re making them money, and which is awesome. And so suddenly you’re you know, you’re a great guy, you know, who’s like, yeah, this guy made me 30 percent of my money. You know that that’s real respect. And so, the self-image that that these people get as well is quiet, quite different.
JMD [00:17:29] I think you take it another step forward to another step forward where it’s not just connecting people, but you’re connecting people in a more formal, systematized way that that maybe lays out certain ground rules as to how you’re how the syndicator is kind of quarterbacking the deal and isn’t just one of the waterboys now. Now you’re part of the you’re part of the deal. You’re not just bringing the deal.
Tilden [00:19:16] Yeah, and I think it’s important to realize that every read so real estate investment trust that’s publicly listed, every private equity firm, every one of those things out there, they started with just one basically syndication. It’s the exact same tool that your Blackstone uses that we use. It’s identical. It’s the same tool. And it’s. The possibilities of growth are really limitless and matching up that, you know, we call it the founder investment theory that you have going in and then finding investors that match it as is where it’s at.