– For The New Investor –
When you first begin considering real estate syndication as an investment option, it can feel intimidating, overwhelming, or like that first day on the new job.
I personally experienced fears around investing in a real estate investment property I’d never seen; had concerns about how I’d get my money back; and fought with doubts around the inability to log into an account and even see my “money”.
I addressed my fears head-on through research and education. Every article I read, podcast episode I listened to and each conversation I had, built up my confidence until I felt ready for action.
If you’re considering your first real estate syndication and feeling hesitant, I recommend taking time and action to do research, connect with other real estate investors, read through previous deals, and build up your knowledge base. With education comes confidence!
In addition to our amazing content, here are a few of our favorite resources to help you on your journey…
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.
Rich Dad, Poor Dad, by Robert Kiyosaki – without a doubt this classic was fundamental in our mindset shift to making our money work for us with cash-flowing assets. A must-read!!
Tax-Free Wealth, by Tom Wheelwright – Tom is Robert Kiyosaki’s CPA and has an incredible wealth of knowledge about how to maximize your investments with the ultimate goal of reducing or eliminating your tax liability.
ABC’s of Real Estate Investing, by Ken McElroy – more of a behind the scenes look at finding, acquiring and running syndications, Ken delivers a great overview of the multifamily syndication process from the active partner’s perspective.
You can find amazing, relevant Facebook groups and also forums like BiggerPockets can help answer questions…and even 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.
It’s a common refrain to hear that real estate investing is a team sport. And every successful real estate investor needs a supportive community. Considering that a syndication is literally a group real estate investment, you’ll want to network with other like-minded investors.
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, meetups, or by asking sponsors of other syndications if they’ll connect you to their current real estate investors.
Finding comfort with financial projections, summary data, and real estate investment lingo may feel overwhelming.
A great way to help understand the language and how investments play out is to review other 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.
Simply due to the nature of the process, multifamily syndications usually have a limited time between becoming an official, approved deal and closing the deal. As a result, each new real estate investment opportunity will fill up quickly. This can make new real estate investors anxious from the small window to decide and at the same time panic from fear they are missing the best deals.
Stay calm. 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 the investment information provided.
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 taking steps to control your future.
It is absolutely life-changing when you start generating Passive Income…for life!
In addition to the ideas just presented, you can amplify your journey with the following resources: