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

It is but natural to feel uncertain about some things, especially if we are going to entrust our precious money to an investment that you haven’t seen personally. 

Despite the promise of good passive income a real estate investing can give, there’s still a side of you who felt blindfolded, and was in doubt and fear when you first began to consider real estate syndication as an investment option.

So to help you to feel at ease with your  first real estate syndication investment, here are the 5 must things to do before investing. 

 

Do Your Research

The best way to build your real estate 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 real estate investors 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 Real Estate Investors

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

Any new investors will share similar anxieties, questions, confusion, and excitement. Experienced real estate investors can provide invaluable firsthand accounts of their experience with various projects, including apartment complex investments, 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 real estate investors.

Review Previous Real Estate Deals

Finding comfort with financial projections, summary data, and real estate 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 real estate investments interest you.

Take Your Time

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

Remember, there will always be another high-return investment opportunity. 

Allow yourself time to complete the steps laid out here, so that when you make your real estate 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 real estate 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.

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