When you first begin to consider real estate syndication as an investment option, it can feel lonely, intimidating, or even like you’re blindfolded. There are a few steps to take before investing in a real estate syndication.
I personally experienced fears around investing in a real estate investment property I’d never seen, concern about how I’d get my money back, and doubt around the inability to log into an account and see my money.
These fears were addressed head-on through research. Every article I read and every conversation I had built my certainty until I began to feel confident toward taking the plunge.
If you’re considering your first real estate syndication and feeling hesitant, I recommend doing your research, connecting with other real estate investors, reading through previous deals, and taking your time.
1. Do Your Research
The best way to build your real estate investing confidence is through self-education and research. Listen to podcasts, read books, and find websites on real estate.
Books:
Rich Dad, Poor Dad by Robert Kiyosaki
It’s a Whole New Business by Gene Trowbridge
Principles of Real Estate Syndication by Samuel Freshman
Podcasts:
BiggerPockets Podcast
Best Real Estate Investing Advice Ever with Joe Fairless
The Real Wealth Show with Kathy Fettke
2. Ask Questions Before Investing in a Real Estate Syndication
Relevant Facebook groups and forums like BiggerPockets can help you learn what questions you should be asking.
It’s likely that other real estate investors have asked about your same concerns and, just by reading through the forum’s questions and answers, you’ll gain clarity.
Remember there are no dumb questions and that you have the right to be diligent about gathering answers to your concerns.
3. Connect with Other Real Estate Investors
A successful real estate investor needs a supportive community, and considering that syndication is a group real estate investment, you’ll want to get networking.
Any new investors will share similar anxieties, questions, confusion, and excitement. Experienced real estate investors can provide invaluable firsthand accounts of their experience with various projects, including apartment complex investments, and sponsors.
Find other investors through online forums like BiggerPockets, local networking events, or by asking sponsors if they’ll connect you to their current real estate investors.
4. Review Previous Real Estate Deals
Finding comfort with financial projections, summary data, and real estate investment lingo may feel overwhelming.
As you review more investment summaries, you’ll start to understand the flow of the deal packages, how each sponsor communicates, and exactly which real estate investments interest you.
5. Take Your Time Before Investing in a Real Estate Syndication
Each new real estate investment opportunity fills up quickly. This can make new real estate investors panic and start to believe they are missing the best deals.
Remember, there will always be another high-return investment opportunity.
Allow yourself time to complete the steps laid out here, so that when you make your real estate syndication choice, you are confident about every step.
Conclusion
If you take nothing else from this article, remember it’s completely normal to feel skeptical, anxious, and even timid when making your first real estate syndication commitment.
The ability to take action is what separates the successful from those who give up.
Your first real estate syndication deal is a huge milestone in your investing journey, and, even though your head might be spinning now, this is a time to savor.
Additional Resources
How Passive Investors Should Analyze Investment Opportunities with Wayne Courreges III
Investor Strategies to Save Thousands in Taxes with Susan Geist
Ethan Gao – The Untold Stories of Real Estate Investing – Multi-Family Real Estate Financing
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