Dallas-Fort Worth Real Estate Investor Club

Real Estate Syndications

  • 26 May 2016 3:16 PM
    Message # 4041327

    Folks,

    Does anyone here have experience with investing in a Real Estate Syndication. I would appreciate your perspective on the pros and cons.

    thanks,

    Sanjay



  • 27 May 2016 8:36 AM
    Reply # 4042984 on 4041327

    Sanjay, I've never actually invested in a syndicate, but I am familiar with some of the sydication approaches usually with multi-family projects.  I can't really provide pros and cons for your situation specifically, but can say that you are normally investing in an entity like an LLC not the actual real estate asset.  In multi-family or commercial projects the entity is usually set up specifically for a particular project or asset purchase.  So you really have to be comfortable with the project lead, the key principals in the entity and the projected financials and term of the project.  And of course you have to make sure the LLC operating agreement matches your understanding of your role and how you and the other members are to be compensated during the project and at completion.

    I'm happy to share what I know, I'm sure there are others with more direct experience, but you can reach me at 972 467 3751 if you have questions about the info above.

    Bill

  • 27 May 2016 11:14 AM
    Reply # 4043556 on 4041327
    Robin Carriger (Administrator)

    There are passive investors, and there are active investors.  I prefer to be the latter.  It definitely takes more time and effort, but it's far more profitable too.  One of the main reasons I got into Real Estate Investing was that I wanted to control my own investments from beginning to end.

    With that said, there's nothing wrong with investing passively and leaving the bulk of the work and decisions in someone else's hands as long as you're sufficiently educated and informed on the details of how the funds will be invested, how profits will be distributed, etc.

    Before I would invest, I would also want to have personally known the principal(s) in the syndicate for a long time.  If that's not practical for the opportunity you're considering now, instead of referring you back to the first paragraph of my reply, I'll just say that you shouldn't invest any more than you're willing to lose.

  • 27 May 2016 11:37 PM
    Reply # 4044414 on 4041327

    Thanks Bill and Robin.

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