By Joe Firmin 4-minute read
When you first begin to consider real estate syndication as an investment option, it can feel intimidating, lonely or even like you’re going in blindfolded. You’re probably worried about investing in a property you’ve never seen, how you’ll get your money back or inability to track the project? We get it. Almost all of us have invested in things we’ve never seen, with no real idea if we’ll ever see our money or managed by someone we’ve never spoken to… At least that’s the case if you’ve ever invested in stocks. Unlike the stock market, a little education and research can go a long way and mitigate much of the risk with real estate.
“God placed the best things in life
on the other side of fear.”
Will Smith
Many fears can be addressed head-on through research. Each article you read and every conversation you have will build your understanding until you begin to feel confident taking the plunge. As with most things, the more you educate yourself, the more comfortable you’ll be. We’re right here to walk beside you.
If you’re considering your first syndication and feeling hesitant, we recommend educating yourself, asking questions, connecting with other investors and staying patient.
Do Your Research
The best way to build your investing confidence is through self-education and research. Listen to podcasts, read books, and find websites on syndication. Use the resources here at True Freedom Capital. Ask us questions.
Books:
Rich Dad, Poor Dad - Robert Kiyosaki
Financial Freedom with Real Estate Investing – Michael Blank
The Perfect Investment – Paul Moore
Podcasts:
Wheelbarrow Profits - Jake & Gino
Best Real Estate Investing Advice Ever with Joe Fairless
Apartment Building Investing with Michael Blank
Ask Questions
Relevant Facebook groups and forums like BiggerPockets can help you learn what questions you should be asking. It’s likely that other people 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. The last thing we would want is for you to invest with True Freedom Capital and be uncomfortable or regret your decision.
Connect with Other Investors
Your network is your net worth. Ever hear that before? A single conversation can make you lots of money, and it could save you lots. Networking allows you to connect with like-minded people with similar goals and can often provide the support and encouragement needed to be successful or at the very least - comfortable.
By attending real estate meetups and conferences, we’ve “heard the low down” on a lot of deal sponsors. You wouldn’t get this information from looking at a website or reading a book. This is why it’s key to get out and talk to people. The commercial real estate community is close-nit, so no good or bad deed goes unnoticed.
New investors will share similar anxieties, questions, confusion, and excitement. Experienced investors can provide invaluable firsthand accounts of their experience with various projects 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 investors.
Review Previous Deals
Finding comfort with financial projections, summary data, and 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 investments interest you the most.
If you’d like to learn more about multi-family as an investment vehicle, click HERE to receive our “Why Multifamily” presentation.
Take Your Time
Each new investment opportunity fills up quickly. This can make new investors panic and start to believe they are missing the best deals. Remember, there will always be another opportunity.
Allow yourself time to complete the steps laid out here, so that when you make your syndication choice, you are confident about every step. It’s better to get into a good deal later than it is to get in a bad deal earlier. Stay patient and understand what you are investing in and who you are investing with.
With all these considerations, you’ll be set up with the right knowledge and understanding to invest in a real estate syndication opportunity. If you’d like to see what a sample deal package could look like to familiarize yourself with the flow, terms and information typically found in a deal, please click HERE.
If you would like to learn more about passive real estate investing with True Freedom Capital please click HERE.