Step 1: Define Your Goals
Investing in a real estate syndication can be both exciting and daunting. Syndication is a great way to build your passive income by partnering with an experienced team
Of course, as with any investment, it’s important to research and gather information to help guide your investing decision.
So, to help you in your journey, we are sharing 10 Steps to Invest in a Real Estate Syndication. We will unveil each step over the next two weeks along with some suggestions on how to get started.
10 Steps to Invest in a Real Estate Syndication
Step 1: Define Your Goals
1. Cash Flow or Equity Upside?
Before you invest in anything, it’s important to clearly define your long term goals. Your life stage is a good starting point. Are you in your 20-30s and plan on working for a while? Or, are you in your 50-60s and closer to retirement? Do you want a higher cash flow for a consistent stream of income? Or would you prefer a higher upside that will potentially multiply 2-3x over 5 years? Sit down with your spouse or partner and think about what you want and the best fit for your current situation
2. Assess your Finances
Take a look at your finances and investment portfolios. Do you have a lot of cash sitting around in a checking or savings account? Are you too heavily invested in one investment vehicle? Would you like to diversify? Do you have a freedom number to achieve your goals? How much income do you need to make to cover your basic living costs? Think about how much you want to invest to start.
3.Are you an accredited or sophisticated investor?
Accredited investors meet one or more of the following criteria: an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse or partner exceeding $300,000 for those years OR someone with a net worth of $1,000,000 or more, excluding their primary residence.
4. Do your homework
Start researching different syndication or investment groups. Start by meeting people. Join a Facebook group or investment club for passive investors. Start by looking up at their website and signing up for their lists. Book a call to get to know these individuals.
Ask questions about them and their experience or track record and pay close attention for clues on how they treat their investors.
– They are taking an interest in you, and genuinely trying to help you with your financial goals
– They are open to build a relationship with you
– They are truthful and honest about themselves and their group
– They are not pressuring you to invest in anything
– They don’t have time for you
– They rush the call
– They don’t seem interested in you and your goals
– Their only objective is for you to invest with them