15 Jun Top 5 Things Every New Investor Should do Before Investing in Their First Real Estate Syndication
When you are considering passive investing in real estate syndications, it can be a bit intimidating – like you’re going in blindfolded.
Virtually everyone I know has experienced having a bit of trepidation around commercial real estate investing in a property they might never have seen. Or they may be concerned about how they are going to get paid on their real estate investment. There may be the uneasiness of not being able to just open an account and see their capital because the capital has been deployed into a real estate asset instead of being parked in an investment account. We get it.
We had the same fears and concerns when we started investing in commercial assets. We researched our deal sponsors, we reviewed the investment summaries, and we researched the markets. The fears we had were addressed by thoroughly researching everything we could until we had the confidence to move forward and take the plunge.
If you are considering investing in a commercial real estate syndication and are feeling a bit nervous about the concept, then I would recommend that you do your research, and take your time. You should never feel rushed. There will always be another deal you can invest in.
Do Your Research
The best way to start building confidence in this type of investment strategy is to educate yourself as much as possible. Listen to real estate syndication podcasts, read books on the subject, and network with sponsors until you find a good fit.
- Rich Dad, Poor Dad by Robert Kiyosaki
- The Guide to Due Diligence by Tabor
- Principles of Real Estate Syndication by Samuel Freshman
- The Real Estate Syndication Show with Whitney Sewell
- The Real Estate Guys Radio Show
- The Real Wealth Show with Kathy Fettke
Ask The Right Questions
Join real estate forums, networks, and Facebook groups such as BiggerPockets which can help you network with other investors and get questions answered that you may have.
It’s likely that the questions you have may be the same questions that others have asked as well. You can review other people’s questions and answers in the forum to help you gain some clarity on the subject.
Your due diligence in getting answers to your questions will be what helps you move past the fear around a new investment strategy.
Connect with Like-Minded Investors
In order for an investor to be successful in syndications, they need a community of support, expertise, and knowledge. Real estate syndications are a team sport approach to investing. Very few go it alone, so networking is a key part of an investor’s success.
New investors have the same confusion, concern, questions, and anxiety around commercial syndications. That is why you should reach out to experienced investors who can help provide you with knowledge and experience. They can also guide you to potential deals and other sponsors who are acquiring different asset types such as multifamily communities, self-storage facilities, mobile home parks, assisted living facilities, and an array of other options for you to consider.
Review Investment Summaries
Understanding the terms that investors use to define projected returns or the data in investment summaries can be a little confusing if you’re not familiar, but just remember every seasoned investor was once a brand new investor at one time.
As you continue to explore various investment summaries, you will begin to comprehend the logistics and anatomy of a real estate syndication deal. Then you will begin to see more clearly which opportunities will best fit your investment goals.
Be Patient & Take Your Time
When there is a great investment presented, investors act quickly to secure their position in the deal and the equity raise will fill up fast. But don’t panic if you don’t have the opportunity to invest in “that one” deal, because there will always be another great opportunity for you. Just be patient, and take your time.
You’re Not Alone
The one thing to remember is that it is that you are not alone if you feel a bit anxious about investing in real estate syndications. That is perfectly normal. Just make the commitment to learn as much as you can to gain the confidence to do your first deal.
Successful investors do their homework, stay the course, and don’t let fear stand in the way of working toward their objective: their ability to Earn Passively & Live Abundantly!
Until next time….
Ready to Learn More?
The best way for you to learn more about passive investment opportunities in commercial real estate syndications is to join the PCRP Passive Investor Club.
Through the PCRP Passive Investor Club, you’ll get a priority review of all the deals we offer. We’ll work with you to determine your investing goals and then present you with the best deals to meet those goals. We’ll then guide you every step of the way as you invest in those deals.
So if you’re ready to start investing passively in institutional-grade, commercial real estate in fast-growing, climate-resilient markets in the U.S., join the PCRP Passive Investor Club – IT’S FREE! – and get started on your path to EARN PASSIVELY and LIVE ABUNDANTLY!
If you would like to know more about what we do and how it may be of value to you, please reach out to us anytime. We’re always happy to help!