All Forum Posts by: Andres Mata

I have been researching a lot about syndications / investment clubs lately and was getting ready to start investing away, but I have found a couple of posts that mentioned that it might not be the best time to invest in syndications due to the current market conditions (many people mentioning awful returns and many even stopping distributions). I know it's not smart to try and "time the market", but what are your general thoughts on syndications / investment clubs in these current market conditions? I understand that these tend to have a return in 2-3+ years, which I am okay with.

Am I looking at this all wrong? Any other tips for a new real estate investor? Thanks in advance!

everything you said is actually "not accurate", I really suggest you get good and proper education, join some PRIVATE UNBIASED alumni investment club and such. If you are circled with folks that's 10x smarter (and wiser) than you, then you may get good result in any investments.

It's really not about "2 or 3 years".

Can you elaborate more on why what I said is actually not accurate, besides the 2-3 year number? Definitely agree with you that I should surround myself with more experienced people, of course, and that's the plan. I also agree that understanding the whole picture makes this less of a passive investment.

You should look at it from business cycle and cap rate cycle , I could send you some charts when it ks more safer to invest at syndication….

The risk when market at cap rate 4 compare to when market is at cap rate 6 is vastly different , you may want to wait until cap rates are stabilizing enough before investing so your risk / reward ratio is way higher.

also you need dig deeper into supply/demand in the apt market as we are now on highest supply where there is strong pressure to rent growth.

Thank you for the details. If you can send my any data/charts, I would love to see them

0 Votes

Quote from @Todd Dexheimer:

The answer is now is a great time if...

1. The financing is solid with high DSCR and fixed

2. The location is good with growth metrics

3. The deal cash flows or has a clear defined path to achieve solid cash flow

4. The sponsor has an excellent track record

5. The business plan is clear and well thought out and fits your criteria

6. The underwriting is actually conservative. Rent growth at or below market historicals, sales price matching current comps/cap rate, etc

Thats a start. By your post it sounds like you should take a bit more time to be sure you fully understand what you're investing in.

Thank you for your reply! And yeah, definitely I am still in the gathering information process. I want to understand a good couple of things better before putting any money anywhere.

0 Votes

Quote from @Carlos Ptriawan:

Quote from @Andres Mata:

Hello all!

0 Votes

Quote from @Chris Seveney:

@Andres Mata

Question also is what type of syndication? Is it office, multifamily, NNN, car wash, self storage, debt fund etc.

Lots of opportunities are out there as well as bad deals- what I will say is don’t put more than 20% of free cash in any one deal.

I have seen a couple of different ones that span from single family rentals to mobile home parks and commercial real estate such as office buildings, storage builds, etc. I haven't decided particularly in anyone yet since I am gathering the necessary information at the moment to see which one would fit my interest. Thanks for the "no more than 20%" recommendation!

0 Votes

Hello all!

4 Votes

All Forum Posts by: Andres Mata

Andres Mata has started 1 posts and replied 5 times.

Post: 01/2024 - Thoughts on Syndications / Investment Clubs

Post: 01/2024 - Thoughts on Syndications / Investment Clubs

Post: 01/2024 - Thoughts on Syndications / Investment Clubs

Post: 01/2024 - Thoughts on Syndications / Investment Clubs

Post: 01/2024 - Thoughts on Syndications / Investment Clubs