Syndication - yes or no?

Question

Trying to find out if group investments are for me.  Please let me know how you have fared.  Thank you.

Dave W. · Answer

SK - Can you elaborate on what you are asking?

Have people had good experiences with Syndications, JVs, or other more passive investments - absolutely. Is it a fit for you? Depends on your risk/return/experience and goals.  You could say similar for turnkey residential, triple-net assets, etc.

In terms of Syndications -- there are a wide range of syndications and sponsors to choose from, with each deal having a different level of risk/return/sponsor experience AND business plan (development, value-add, etc.) Bottom line is you will still want to vet both the deal and the sponsor and then match that to your goals on risk/expected returns.

To get a feel for how the nationwide players structure the deals, check our www.cadre.com or similar sites that are crowd sourcing them. For Value-Add, there are a number of players and plenty to find here and elsewhere through reading the boards, reviewing signatures, marketplace, etc.

If you can add more detail to your question, I'm sure others can chime in more productively so apologies for the generality of my response.

Best,

Dave

Carlos Ptriawan · Answer

My advice is to join a private investor group where there is no Sponsor (unlike BiggerPockets) in the group. Study and learn the track record from more senior Investors. For example many investments on CrowdStreet these days are underperforming. Not too mention, an investment under one Sponsor can yield a very good return while their other investment is underperforming.What we need is a kind of audited-Yelp-like Syndication track record performance that's available in public before Investing.

Alina Trigub · Answer

@SK Yuthas

It's going to take a bit more research and analysis on your side than just reading the responses to your post in order for you to decide whether syndications is the right route for you.

You haven't specified whether you're looking at it from a passive or active perspective. I assume it's passive. So here's the post to guide you further: https://www.biggerpockets.com/member-blogs/10850/86626-the-pros-and-cons-of-investing-via-real-estate-syndication

Joseph Firmin · Answer

Hi @SK Yuthas, They may be but it really goes back to goals. Figure out where you want to be, by when, and then see if you can back into they type of real estate investment that fits your goals. There are many different ways to invest in real estate, just make sure what you want aligns to your long term goals. As others on this thread mentioned, do some research and check out different sponsors, understand if a syndication is appropriate for you and then once you have the right knowledge, take action.

Marlen Weber · Answer

@SK Yuthas Before going into syndication deals, read up a bit on what it entails to gather information on whether it is for you or not. I suggest books and podcasts as well as finding a mentor in your area who is experienced in syndication.

Rick Martin · Answer

Taking on partners can immediately expand your network and knowledge. It also provides accountability that can get you out of your bubble. Having said that, you really must ask the tough questions of people before you form that partnership, whether it be a joint venture or syndication.

Roni E. · Answer

When you group investment I assume you mean Syndications. As any investments, you have to do your homework and triple-check it. I would see what asset class works for you, educate yourself, and go forward from there.

Syndication - yes or no?

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