Investor's Most Commonly Asked Questions (Part 1)

[Jorge Abreu]

Can I invest in syndication with my retirement funds?

Yes! In fact, this is one way that many passive investors get started with real estate syndications. To invest in a real estate syndication using retirement funds, you need to first roll over your existing retirement funds (401k's, IRAs, etc.) into a self-directed IRA account. We like Provident Trust Group for their low fees and great customer service, but there are many self-directed IRA companies out there. Once your money is in the self-directed IRA account, you can choose what you want to invest it in, and the self-directed IRA custodian will invest it on your behalf. For a real estate syndication, you will need to provide your self-directed IRA custodian with copies of the legal documents for the syndication (private placement memorandum, operating agreement, and subscription agreement). Then, they will send in the funds on your behalf. Any returns you make on the investment must go directly back into the self-directed IRA account, never into your personal accounts.

Where can I find real estate syndication opportunities?

Many real estate syndication opportunities cannot be publicly advertised. The ones that you do see publicly advertised are foraccredited investors only. You can do a Google search, but how do you know that the opportunities that pop up are legitimate ones, put together by experienced teams with strong track records, who will safeguard your money over a period of several years? It’s extremely hard to find great real estate syndication opportunities just by doing a Google search.

The best way to find real estate syndication opportunities is to get out there and talk to people in the real estate investing space, and particular those in the real estate syndication space. This community is quite small, and once you get connected, you’ll easily be able to find sponsors and real estate syndication opportunities that fit with your investing goals.

We know how hard it can be to find great real estate syndication opportunities. So, that’s exactly what we do. We have dedicated the majority of our time and resources to connecting investors with great real estate syndications. We work hard to find the best real estate markets to invest in and partner with experienced sponsor teams in those markets. We’ve been in this space for a while, so we know most of the larger players and work hard to vet all of the sponsor partners we work with, to make sure they have a strong track record and know what they’re doing.

Once we find a deal with a great sponsor, we partner with the sponsor and open up that real estate syndication opportunity to our investors. Our investors will never pay any direct fee to work with us. We are merely the conduits between our investors and the sponsors. The main benefit we provide our investors is in the investing experience. We provide a lot of resources to our investors and make sure to make ourselves available at all times to answer any questions along the way (sponsors can often be busy with the acquisition of the property and might not have time to answer investor questions). We also invest in these deals right alongside.

our investors. We will not open up a deal to our investors that we wouldn’t consider investing in ourselves. If you’re interested in investing passively in real estate syndications, a great first step is to join our Investor Club. After we get to know you, we’ll help you find real estate syndication opportunities that meet your specific investing goals.

NEXT: Investor's Most Commonly Asked Questions (Part 2)