Maybe you have the term “Real estate syndication“Quit a lot in the last few years. It seems like almost every real estate investor is either starting or investing in a real estate syndication. So What is all the hype about? Is this an investment opportunity that you are missing out on, and if so, is it really passive how many people claim?
We brought the master pinball machine, the rehab appraiser and the syndicator ourselves, J Scott, back to the BiggerPockets Money Podcast so he can share Information (and advice) on real estate syndications. J goes through a handful of points worth investigating before investing in syndication. We’re talking about what real estate syndication is, where to find syndication, how to do it validate the syndicators yourself what a Limited partner is what a General partner is and more.
The most valuable part of this entire episode is about Research on the syndication deal yourself. Where is it located, how is it structured, who operates it? These are all questions to be asked, along with a few others Key question like:
- What is the Team track record, Reputation, experience?
- What is the location, Risks, population size, employment, wage growth?
- On the Act, what are the returns, what are the major risks?
- Do you have a Investor Presentation?
- What is it? Minimum investment?
- Is there Capital calls? How do you deal with capital calls? Have you needed capital calls in the past?
- What are your Accreditation requirements?
- Can you get better terms in exchange for a larger investment?
- How frequent are the distributions? Quarterly, monthly, annually?
- When do the distributions start?
- Will they do it? Cost separation study?
- What fees do they get?
- When will they give updates? Monthly, quarterly?
- Can you Invest with a 1031 or an IRA?
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In this episode we cover
- What is real estate syndication? and who is eligible to invest in one?
- What a accredited investor is and the qualification behind it?
- Where can you Find Syndicators?
- Whether investors have it or not Liability when a business goes wrong
- Cap rates, NO, I, and reviews with large offers
- How one research a syndication deal
- Syndications vs. medium vs. REITs
- What happens if a Syndication is running out of money?
- and So Much more!