If you are a follower of this show, then you are probably compelled by the strategy of apartment syndication. It is a great way to build on the economies of scale and partner with other investors to acquire assets that would normally be out of your reach. This strategy is a great tool to have in your toolbelt however, there are certain provisions, in particular, related to capital raising that one must have a sound understanding of.
Our special guest on today’s episode is Eugene Trowbridge, Founding Partner of Trowbridge Law Group. His law practice concentrates on the syndication of both debt and equity in commercial and investment real estate. The firm’s partners have written offerings for over $5 Billion in equity raised with their median offering size being valued at $2.5 Million.
Eugene is a former syndicator himself with over 10 years’ experience, starting with a mobile-home park, and then having transitioned to multi-family. Displeased with the management aspects of both of those markets, Eugene went on to build storage facilities. He later decided to obtain a law degree with a specific focus on securities law, which he’s been practicing for the past 27 years.
In this episode, we cover:
How big is the industry?
What are the duties of a syndicator?
Beware of unlicensed broker-dealers
Eugene’s Four Questions
What’s the value of your signature?
What are some common mistakes operators are making?
What’s the difference between return on capital and cash-on-cash return?
Tune in to the entire episode as Eugene covers these informative points and so much more!
Final Four Questions:
1. What do you like to do for your continued education to further your business?
Eugene: “The problem with my world and continuing education is I’m a real estate broker in the state of California and I’m a licensed attorney, so I’m constantly taking courses just to fulfill my license requirements – whether they’re interesting to me or not. I haven’t sold a piece of real estate in 20-30 years and I’m still having to take courses about Dual Agency and mold.
Last year one of the companies that provides legal services and legal education for attorneys came out with a package, I think it was $1400 for the year, you could take as many courses of theirs as you want – and I don’t need that many, I think I have to take 25 hours. So I get all these announcements, and you’d be amazed at the courses I take. Every once in a while I try to take something I know nothing about.
2. What have been some of the most impactful lessons that you've learned along your journey?
Eugene: “The number one lesson I learned as far as business goes, and it’s tracked my whole career, is I’m not a person who wants a big operation.”
3. What advice would you give to the listeners to help them grow their businesses?
Eugene: “To the syndicators out there: learn from others. If you can, grab PPM’s from other people, talk to other people, do masterminds, join groups, listen to you podcasts.”
4. Tell the listeners how they can learn more about and connect with you.
Eugene:
Eugene’s email is [email protected]
Eugene’s website is Trowbridge Law Group
Eugene’s phone number is 949-855-8399
Eugene’s book is Its A Whole New Business
