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You’ve heard the word SYNDICATION. Here we’re going to cover the basics of real estate syndication, and explore what type of investor might want to use this investment strategy…and why.
So, what is Syndication?
In a nutshell, real estate syndication involves pooling funds with other investors to purchase real property—often multifamily residential or commercial buildings. Similar to crowd funding, syndication allows investors a way to get in on deals they might not otherwise be able to afford or choose not to risk alone.
How does it work?
An interested investor carefully researches syndicator individuals or companies that fit their interests and goals. The chosen syndicator provides investing expertise, access to deals, a funding pool from other like-minded investors, and property management.
Why invest via Syndication?
People involved in real estate syndication are looking for ways to invest that are less time consuming, possibly less costly, and involve a lot less work. Handing off to a syndicator, an investor doesn’t spend time searching for deals, covering due diligence, arranging financing, or handling day-to-day property management. All tasks are handled by the syndication group. And, it could be an avenue that requires less investing capital.
If aligned with a reputable syndicator, investors can expect to get a return on their investment per the agreed-upon terms of their contract. And, they can go about their daily business without the worry or work of managing the properties.
Is Syndication for you?
Whether to get involved is totally up to you—and maybe your financial advisor—to decide. If syndication is on your possible investing list, learn as much as possible about the options and risks, and make sure you carefully check out syndicators before jumping in.
You are invited to join LeAnn Riley’s Real Estate Investing Club–FREE–to gain access to real estate experts who join LeAnn via livestream second Wednesday of every month.