Karim Jaude is a self-made man. Several times over, thanks to his success in real estate syndication.
Through his company Dynamic Capital Group, Mr. Jaude hosts the 11th Annual Real Estate Syndication and Crowdfunding Summit on Nov. 7 at the Luxe Sunset Boulevard Hotel. Attendees both experienced and new can expect to learn about every step in the process from people who know it best – proven veterans in the field with whom Mr. Jaude has personally conducted business.
Mr. Jaude hails from Lebanon, which is where he made his first million by the age of 26 through purchasing distressed properties. His portfolio eventually grew to include 12 companies spread across the Middle East and Europe.
That success caught the attention of the Syrian and Palestinian armed forces, who, in 1976, kidnapped and tortured him before forcing him to turn over control of everything he owned, Mr. Jaude said.
After being freed in 1978, he fled to Iran, where he applied the same successful format he used in Lebanon.
Geopolitics again intervened, this time in 1979, when Mr.Jaude had to dress as a woman to flee the embattled country.
This time he headed to the United States, where he landed with 17 dollars in his pocket and the goal of continuing to employ his blueprint for success.
After being turned away by the first two real estate agents he approached, Mr. Jaude found success on his third attempt. He not only convinced the agent, but also several of the agent’s friends into investing in a house, which Mr. Jaude renovated and sold at a profit. Those profits were enough to purchase three more homes.
“And we were on our way, Mr. Jaude said.
Fast forward 35 years and Mr. Jaude has a portfolio of malls and apartment blocks throughout California, Utah, Nevada, Texas and Colorado. He has taught at UCLA and USC and has been published in more than 150 magazines and newsletters.
Mr. Jaude, who has been producing these shows for 11 years, said the day’s focus is on partnerships, which a syndicator has to forge with someone at virtually every step in the process.
Successful partnerships are based on three qualities Mr. Jaude has displayed in his career and which he expects his partners to display in return, he said.
“If I invite you to do something, there are three important things you have to,” Mr. Jaude explained, while adding they are equally as important for him to display in return.
“The first is quality of service” The final result has to be a quality product.
The second is responsiveness – delivering your promised results on time.
“The third is providing the service at a competitive cost,” Mr. Jaude said.
The day features 14 speakers, which Mr. Jaude’s associate Gene Massey, Founder and CEO of Media Shares, said covers everything someone interested in syndication needs to learn.
“You can walk into the room not knowing a thing and meet all the people involved in the deal, from tax specialists to mortgage and private money lenders all in one spot.”
Each speaker will describe their area in depth but the day is not one long lecture, Mr. Jaude cautioned.
“We run it like a town hall meeting more than a seminar,” Mr. Jaude explained. “We are more talking to people and they are responding with their questions.”
The format is based on a saying from Mr. Jaude’s homeland.
“The shy sleep hungry,” he said with a chuckle.
Because Mr. Jaude has personally done business with each of the speakers, he can attest they know the subject material. Unlike many other shows, no one is speaking because they sponsor the show.
The diversity of experience is important, because some people will work with single family residential or small multi-family units, while others envision themselves working in commercial real estate. The skill set required to successfully complete a $50 million transaction is different from the one employed in a $2 million one.
While many of the speakers cover the traditional way of funding deals, which Mr. Jaude says still accounts for 97 percent of deals being made, several speakers represent real estate crowdfunders like Fundrise, RealtyShares and Patch of Land, which Mr. Jaude said are growing in influence.
After beginning in California, Mr. Jaude said he expanded to neighboring states and different parts of the country. One reason for his recent pursuit of new markets is the difference in property values between Los Angeles, where average prices can be as much as 50 percent higher than the previous peak, and cities like Las Vegas and Phoenix, which remain below the top of the market.
Some newer entrants into real estate seem to lack the patience to properly capitalize on the market. These players are looking for the quick strike, and fail to develop the habits most conducive to long term success in the field, Mr. Jaude suggested.
“Short term in real estate can be as long as three years,” he explained. “Medium term ranges from three to seven years, and longer term extends beyond that.”
While Mr. Jaude will hold on to properties for years if that is what it takes, he said they must produce cash flow within one year or he won’t purchase them.
“You don’t make your money from cash flow alone, but it is important when markets are down.”