How to Build Credibility as a Real Estate Syndicator
Depending on your own financial capabilities and your personal success as a real estate investor, you may be able to transition into a new role in the real estate investing world. While you may have built your own net-worth through shrewd investments, the opportunity to become a real estate syndicator is an incredibly tempting one. However, if you’re going to find success as a real estate syndicator, it’s important that investors are willing to entrust you with their money. Afterall, the point of a real estate syndication is to use other people’s money to purchase, improve, maintain and advertise investment properties. Credibility is your most important asset as a real estate syndicator. If you’re going to be successful, it’s important that you establish yourself as credible and trustworthy. Be sure to apply some of these tips to do just that.
Selecting an Area of Specialty
If you’ve ever invested in real estate before, you know that different types of assets require different levels of funding and work. For instance, fixing and flipping residential properties is nothing like owning and operating an apartment complex. Investing in vacation properties is completely different than owning an office complex or a group of retail locations. If you’re going to establish yourself as a successful syndicator, start by focusing on one type of asset and make yourself an expert on them. Find an asset class that interests you and that you’re confident in your ability to identify, obtain and profit from. Investors will be more impressed by a syndicator who is an expert in one type of asset than they are a syndicator who knows a little bit about multiple different types of properties.
Developing Strategic Partnerships
As a new real estate syndicator, your name doesn’t really carry much weight. That’s not to say that you’re not going to be successful in the future or that your reputation is bad. Instead, it simply means that people don’t know that they can trust you with their money yet. One of the best ways to build your credibility is to establish strategic relationships with other industry professionals who are already credible. In some cases, different syndications often work together in pursuit of a larger goal. Even if you can’t find established syndicators who are willing to work with you, developing a relationship with attorneys, mortgage professionals and established real estate agents can help cement your position as a trusted source for would-be investors.
As a real estate syndicator, you’re not selling property. Instead, you’re selling yourself. Work with a marketing firm to help you choose the best way to brand your new company to potential investors. Choosing the right logo, the right name and other aspects is an important part of establishing your company. Once you’ve got a brand, you’ll need to start marketing it to your potential investors. Information marketing is a great step, as it helps cement your position as an expert real estate syndicator. Something as simple regularly scheduled, informative blog posts can help establish your brand.
Finding What Makes You Special
If all factors are equal, most investors will choose a syndicate that provides a proven track record of success. As a new syndicator, you don’t have the luxury of experience on your side, so you’ll need to find your own selling point. Again, it’s better to focus on doing one thing exceptionally well when establishing your selling point, so sit down and really think about what you want to do better than anyone else. Are you going to provide higher returns for investors? That will mean less money in your pocket, but it can help get the attention of potential investors. Are you going to be the best commercial real estate syndicator in the area? You’ll need to establish connections with commercial developers and brokers. Find what makes your company special and highlight that in all of your marketing material.
Ultimately, the best way to build credibility as a real estate syndicator is to make successful transactions for your investors while exhibiting honesty and integrity. Life as a real estate syndicator can prove to be incredibly profitable, especially once people know they can trust you.