Investing in Real Estate Syndications

[Luis Barberi]

HI! 

There seems to be a wealth of information and podcasts on people who start and manage syndications but are there any resources on the flip side - the investors who invest in syndications?  What to look for?  Success stories? Comparisons etc?

Thanks!

[Annie Dickerson]

Hey @Luis Barberi, I love that you asked this question. When I started out looking into syndications, I found the exact same thing. There was a ton of info for people who wanted to become syndicators, yet very little out there for people who want to become passive investors.

From the outside, this whole syndication thing seems like a black box. You don't know whom to trust, where to go for resources, and on and on. The few who make it through and successfully invest often see great success, yet many turn back in the process because it's so hard to find resources and figure out whom you can trust.

While I've found it useful to learn things from the syndicator's perspective (investment criteria, underwriting skills, etc.), that can be very time consuming and more technical than the level the passive investor needs.

I would start by looking for sponsors, and asking them for investment summaries from previous deals. These are the marketing packages created for each investment opportunity and typically go through everything from the business plan to the financials to comps, and much more (I'm happy to share some closed deal decks; just message me).

You'll start to see how different sponsors lay out their business plans, and what they look for in a deal. As you compare the deals, you'll start to see what's important to you as a passive investor. 

And that's the other thing I would say is important to know going in, is what your personal investing goals are. Are you investing in syndications for cash flow, appreciation, tax sheltering, diversification, etc.? 

Knowing what you're personally hoping to get out of it will help you find the right opportunity for you.

Good luck!