Real Estate Syndication

One method I teach in my real estate training for developing a larger pool of funding for purchasing commercial real estate is the development of real estate syndications. Syndicates allow several investors to contribute funds toward the purchase of commercial property and provide several different benefits and advantages.

Leverage Expertise

One benefit of real estate syndication is the fact that multiple investors mean multiple levels of expertise. Nonprofessional investors who are not knowledgeable about the business can benefit from the knowledge of other investors who may have extensive knowledge about the industry. In addition, experts in the industry can allow investors with other skills to handle day-to-day operations while they focus on the expert knowledge that will keep the business running smoothly.

Savings

The larger the investment pool, the more opportunity you have for savings. A real estate syndicate with a larger investment pool is able to make a higher down payment on a property, which could result in lower interest rates and will make the project more appealing to finance companies. In addition, a higher down payment will increase equity in the commercial property which could be used in the future for improvements or increases in returns.

Diversification

Smaller investors often are unable to diversify among different properties due to the economic factors involved in investing in multiple industries. Real estate syndication offers the small investor the opportunity to diversify their investment among a variety of industries, or to invest in larger commercial properties than they could as a single investor. Financial experts state that diversification also minimizes risk to the investor.

By using the proven methods I teach in my real estate training, you can either learn to set up your own real estate syndicate or join one that is already in place. You can learn more about my real estate syndicate at www.cmrei.com.