Why do real estate syndicators sell their properties?

[Justin Goodin]

👉 Why do most real estate syndicators aim to sell their properties?

Why not just hold the property forever?

Most each real estate syndications (group investments) go through a progression of stages.

All should have a clear beginning, middle, and end.

Here are the 4 phases for a typical syndication deal:

Phase 1 - Acquire
Phase 2 - Add Value
Phase 3 - Hold
Phase 4 - Sell 💰

The sale is arguably one of the most important phases!

At this point, the property exhibits completed updates, increased revenues, and appreciation.

So, the best use of investor capital is to sell the property so that they can seek their next investment project.

Once the sale is complete, investors get your original capital back, plus a percentage of the profits.

While slow & steady cash flow can be nice, selling the property allows investors to multiply their equity faster over time. 📈