Typical Syndication Minimum Buy In

[Nathan Payonk]

Syndication is huge right now for various reasons. I want to invest on the passive side of real estate. Is there a average minimum to buy in usually for a deal or does it vary deal to deal? Thank you for any feedback. 

[Ian Ippolito]

Originally posted by @Nathan Payonk:

Syndication is huge right now for various reasons. I want to invest on the passive side of real estate. Is there a average minimum to buy in usually for a deal or does it vary deal to deal? Thank you for any feedback. 

 Yes there is huge variation, and a lot of it depends on the legal structure the organizer is using.

For example if they are using regulation A+ (which allows them to target nonaccredited investors) the minimums are usually quite low: sometimes as low as $100 (but more typically around $5000-$10,000).

If they are using 3c1 and 506b or 506c to target accredited investors only, they are generally limited to 99/100 investors, so the minimums are higher (typically around $25,000 but can be higher end as much as $500,000 or more).

Other structure completely differently and target only qualified purchasers only ($5 million+ in investments not counting primary residence). These structures often can allow up to 1999/2000 investors so the minimums can theoretically be much lower than accredited and occasionally are. Although, since they are targeting people with deeper pockets, it's actually not uncommon to see minimums at $1 million-$5 million in this range.