How to Find Real Estate Syndication Deals
Making the decision to passively invest in real estate opens up a host of opportunities for you. Once you’ve made the decision to become a passive real estate investor, you then need to determine what investment type you’re going to choose. If you think that a real estate syndication is the right choice for you (and there are plenty of benefits of choosing them), you then need to find the best syndication option. Knowing where to look for real estate syndications and how to find the right one for your personal investment goals is crucial.
What Type of Investor Are You?
Before we fully dive into where to find real estate syndications, it’s important that you understand what type of investor you are, as some syndicates are only open to accredited investors. In contrast, other syndications are open to all investors, including non-accredited investors. Accredited investors are those who have met certain annual income and net-worth requirements set forth by the SEC. If you are not an accredited investor, it’s crucial that you only search for investment opportunities that you can legally participate in.
Depending on your history of investing, you may have built a relatively healthy network of contacts within the industry. This list of names and numbers is more valuable than you will ever realize. Ideally, you will have established a good professional relationship with other investors. Even if this is your first investment, think about the people you know who work in the real estate and finance industries. Establishing personal connections within the industry is one of the safest ways to choose a syndication because you can talk to other people who have worked with a particular syndicator. Since syndications are more about investing in the person leading the investment than the properties themselves, networking is a great idea.
“If you read it on the internet, it must be true.” While that statement isn’t exactly accurate, the fact does remain that you can find several syndication options online. While certain syndication types that are only available to accredited investors have limited advertising options, syndications that are open to non-accredited investors can rely more heavily on online advertising. In fact, it’s not uncommon to find links to some established real estate syndicates on your social media feed! Please spend some time looking through different syndications’ websites and read the reviews and their past results.
Message boards may largely be considered a thing of the past, but online forums are still an excellent tool for putting syndicators in contact with potential investors. For example, some established websites such as Bigger Pockets have a forum on their website that is dedicated to a forum that puts potential investors in touch with real estate syndicators. While it’s important that you perform your due diligence on the people that you get in contact with through these forums, they can often provide valuable contact information.
Pick Up the Phone
Just finding the names of real estate syndicators isn’t enough. Any reputable syndication will provide contact information that allows potential investors to contact them for more information. While you may be able to find a syndication online or through a personal contact, it’s important that you speak directly to someone at the syndication before committing any of your hard-earned money to their investment. Talking to someone who represents the syndication personally allows you to vet them while requesting more information about their history.
Ideally, you will find a real estate syndication that you can invest in for the long-term. Once you establish a relationship with a syndicator, you will have opened up a channel for investing that allows you to find more investment opportunities that can put you in a position to increase your own net-worth while creating a lasting financial legacy for your children and their children.