What Value Does A Real Estate Syndicator Bring To The Table?

What Value Does A Real Estate Syndicator Bring To The Table?

What value and advantages do real estate investment syndicators offer individual investors and investment groups?

It’s possible for individual investors, family offices, investment groups, and small funds to go out and find properties to buy. Of course, there is a lot more to securing and operating a truly profitable investment than just finding a property up for sale. Especially if investors want the maximum potential returns from an asset, and want to protect their time freedom as well.

Here are just a few of the factors that a great syndicator handles for their investors…

Bring Together Professional Services

Syndicators bring together all of the experts needed to set up and manage an asset. That includes finding and vetting these professionals, and often covering the upfront costs. This can include bankers, SEC attorneys, property managers, accountants and more. The volume of business syndicators control also means they have stronger relationships and more negotiating power with these vendors. Often to a level, no solo investor is ever going to be able to achieve.

Acquisitions

From managing research teams to evaluate markets and locations, to finding off-market investment property, to negotiations and handling the paperwork, financial underwriting, and deep due diligence, there is a lot that a syndicator handles during the acquisition stage.

Financing

Whether it is augmenting purchase capital with non-recourse loans, construction financing, or refinancing and restructuring debt, a syndicator can also be tasked with a lot in this process.

Marketing

Marketing is another area which requires a lot of expertise and manpower, as well as significant upfront investment. This can apply in the sourcing stage, as well as for marketing for tenants and exits.

Investor Management

Whether there are 5 or 500 investors in your syndication or partnership, managing and servicing them can be extremely time-consuming. They need to be constantly updated, given detailed accounting and tax records, and much more. This can be somewhat be eased with big investments in new technology, though still requires a lot of manpower.

Liability

A syndicator is a great legal buffer for capital investors. The syndicator not only typically bears the brunt of the liability involved in daily operations, but handles legal teams and insurance.

Construction Management

One of the great advantages of real estate investment is the ability to add value through improvements. However, this is also a critical make or break part of real estate investment. Few truly understand what adds value or not. Far fewer understand how to effectively manage contractors. That can make all the difference in big profits or a big loss.

What are your investment experts doing for you?