5 Things Every New Investor Should Do Before Investing In Their First Real Estate Syndication

Join Investor Club

Share on facebook
Share on google
Share on twitter
Share on linkedin

At Elemental Equity, we believe in sharing our knowledge and expertise in multifamily real estate investing with you.

When you first begin to consider real estate syndication as an investment option, it can feel lonely, intimidating, or even like you’re going in blindfolded.

I personally experienced fears around investing in a property I’d never seen, concern about how I’d get my money back, and doubt around the inability to log into an account and see my money.

These fears were addressed head-on through research. Every article I read and every conversation I had built my certainty until I began to feel confident toward taking the plunge.

If you’re considering your first syndication and feeling hesitant, I recommend doing your research, connecting with other investors, reading through previous deals, and taking your time.

Do Your Research

The best way to build your investing confidence is through self-education and research. Listen to podcasts, read books, and find websites on real estate.

Books:

Rich Dad, Poor Dad by Robert Kiyosaki

It’s a Whole New Business by Gene Trowbridge

Principles of Real Estate Syndication by Samuel Freshman 

Podcasts:

BiggerPockets Podcast

Best Real Estate Investing Advice Ever with Joe Fairless

The Real Wealth Show with Kathy Fettke

Ask Questions

Relevant Facebook groups and forums like BiggerPockets can help you learn what questions you should be asking.

It’s likely that other people have asked about your same concerns and, just by reading through the forum’s questions and answers, you’ll gain clarity.

Remember there are no dumb questions and that you have the right to be diligent about gathering answers to your concerns.

Connect with Other Investors

A successful investor needs a supportive community, and considering that syndication is a group investment, you’ll want to get networking.

Any new investors will share similar anxieties, questions, confusion, and excitement. Experienced investors can provide invaluable firsthand accounts of their experience with various projects and sponsors.

Find other investors through online forums like BiggerPockets, local networking events, or by asking sponsors if they’ll connect you to their current investors.

Review Previous Deals

Finding comfort with financial projections, summary data, and investment lingo may feel overwhelming.

As you review more investment summaries, you’ll start to understand the flow of the deal packages, how each sponsor communicates, and exactly which investments interest you.

Take Your Time

Each new investment opportunity fills up quickly. This can make new investors panic and start to believe they are missing the best deals. 

Remember, there will always be another opportunity.

Allow yourself time to complete the steps laid out here, so that when you make your syndication choice, you are confident about every step.

Considering Everything

If you take nothing else from this article, remember it’s completely normal to feel skeptical, anxious, and even timid when making your first syndication commitment.

The ability to take action is what separates the successful from those who give up.

Your first real estate syndication deal is a huge milestone in your investing journey, and, even though your head might be spinning now, this is a time to savor.

Leave a comment

Facebook


Twitter


Youtube


Medium

Recent Posts

Contact

First Name*



Last Name*



Email*



How did you first hear about the Elemental Equity Investor Club?



Investment Experience




Stock market investing for at least 2 years in self-managed accounts



Investing in syndications



Real estate investing for at least 2 years



Mutual fund investing or Stocks



Options trading



Commodities


Which type of investor category applies to you?




Accredited



Sophisticated / Non-Accredited



Neither


Consent




I hereby represent and warrant that the foregoing statements are true and accurate to the best of my knowledge, and I will promptly notify Elemental Equity of any changes in the foregoing answers.


Submit

Marketing by

Notes:

1. To be an accredited investor, you must EITHER have a net worth of $1M+ (not counting your primary home) OR have an annual income of $200K+ as an individual ($300K+ for joint income) over the last 2 years, with the expectation of the same income in the current year.
2. A classification of investor indicating someone who has sufficient income ($100K+), capital (liquidity to invest), experience, education within the investment class, and net worth ($350K+) to engage in more advanced types of investment opportunities.

 No Offer of Securities—Disclosure of Interests. Under no circumstances should any material on this site be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the Confidential Private Offering Memorandum relating to the particular investment. Access to information about the investments are limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments.