The goal of an asset manager in a fund or syndicate is to allocate these roles among 2-5 key team members. Initial discussions should be held with prospective team members so they can take on tasks that align with their expertise. Members earn their share of management fees and profits based on the tasks they fulfill. Tasks that cannot be managed internally will need to be outsourced or hired out.

Key Roles and Responsibilities in a Real Estate Syndicate

1. Educational Growth: Attend industry events, hire a coach, and develop a solid understanding of the asset class.
2. Deal Sourcing: Find acquisition opportunities by cold-calling property owners or real estate brokers, sending letters, gathering data on potential deals, analyzing offer prices, and making offers.
3. Underwriting and Feasibility Analysis: Analyze deals to determine their feasibility for investors.
4. Due Diligence: Conduct a thorough examination of physical, regulatory, and construction-related issues.
5. Corporate Compliance: Collaborate with a corporate securities attorney to establish the corporate structure, ensure securities compliance, and prepare offering documents.
6. Investor Marketing: Prepare marketing materials to promote the investment offering to potential investors.
7. Legal Coordination: Work with a real estate attorney on purchase and sale agreements (PSA), leases, title, escrow, loan documents, and vendor contracts.
8. Capital Raising: Fundraising is everyone's responsibility. This involves presenting the pitch deck to investors through webinars, live events, or one-on-one meetings, attending local meetups, holding networking events, and conducting suitability meetings with potential investors.
9. Property Management Oversight: Supervise the property management team to ensure smooth operations.
10. Investor Reporting: Prepare status reports and maintain an investor management platform to ensure transparency.
11. Bank Account Management: Manage the investor entity's bank account.
12. Investor Distributions: Make timely payments to investors and the management team.
13. Evaluate Distributions: Assess and distribute profits to investors on a quarterly basis.
14. Financial Oversight: Oversee bookkeeping on a weekly or monthly basis and work with a CPA to prepare annual tax returns.
15. At-Risk Capital Contributions: Every member should contribute to the at-risk capital required before closing. This includes covering pre-closing expenses to acquire the deal, as passive investor funds cannot be used for this purpose.
16. Loan Guarantees: Even non-recourse loans require guarantors with a net worth equal to or greater than the loan amount.

Team Dynamics and Growth

As your syndicate grows, it is crucial to have the right people in place to handle these tasks. While some roles may overlap initially, creating a clear distribution of responsibilities helps each member earn based on their contributions, ensures efficient management of the syndicate, and ultimately drives better results for investors.