🏗️ What You Need to Know About Syndications
Happy Monday!
Here is an Idea, an Action, and a Question to consider this week.
Idea
A real estate syndication is a way for multiple investors to pool their money and resources together to purchase a larger real estate investment than they could on their own.
This is typically done through a limited liability company (LLC) or limited partnership (LP) structure. The syndication is led by a sponsor, who is responsible for finding the deal, managing the investment, and providing returns to the investors. In exchange for their investment, the investors receive ownership in the LLC or LP and a share of the profits from the investment. This allows investors to diversify their portfolio, participate in larger deals, and benefit from the knowledge and experience of the sponsor. It's a powerful tool for those looking to grow their wealth through real estate investment.
Syndications are another way that investors and non-investors alike can leverage OPT—Other People’s Time. They provide a great opportunity for people who have money but not enough time or knowledge to invest. They could be a great fit for certain professions, like doctors, who earn a high income but also work seventy hours a week. A doctor in this scenario does not have the time freedom to find all the right places for their money to grow.
I’ve been blessed to enjoy both sides of these syndications. Initially, I participated as an investor or limited partner, where my contribution was purely financial. I was able to connect with some great sponsors (also known as general partners), who taught me the ropes.
After growing my knowledge and connections as a limited partner on deals, I was able to connect and grow as a sponsor of many more deals. It has been an amazing experience to help my friends and family grow their wealth through my investments, as well as connecting with new people who are looking to do the same.
Action
If you're new to real estate investment, particularly syndication, begin by connecting with experienced sponsors. These are individuals or companies that have successfully managed syndicated real estate investments. Networking with seasoned sponsors will help you learn the intricacies of real estate syndications, understand market dynamics, and potentially offer you opportunities to invest in upcoming projects.
Question
Have you considered using real estate syndication as a strategy to expand your investment portfolio? What's holding you back OR pushing you forward in exploring this avenue?
See you next week,
Matt “Roar” Gardner
Real estate investor-agent, Author of Supersonic Real Estate: Light Your Afterburner to Accelerate Your Investor-Agent Career (Coming Soon!), and keynote speaker.
PS: Are you an agent who needs 1-1 coaching? Enroll in my latest audio course and choose the “Audio Course + 60-minute Coaching Session with Roar.” Bring your questions to the table, and let’s answer them together. Book it today!
