5 Things Every New Investor Should Do Before Investing In Their First Real Estate Syndication
Updated: Dec 15, 2021
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 fear around investing in a property I’d never seen. I was concerned about how I’d get my money back, and doubted 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.
1) 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.
Rich Dad, Poor Dad by Robert Kiyosaki
It’s a Whole New Business by Gene Trowbridge
Principles of Real Estate Syndication by Samuel Freshman
Best Real Estate Investing Advice Ever with Joe Fairless
The Real Wealth Show with Kathy Fettke
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 you have the right to be diligent about gathering answers to your concerns.
2) 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.
3) 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.
4) Take Your Time
Each new investment opportunity may fill up quickly. This can make new investors panic and start to believe they are missing the best deals.
5) 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.
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.
When determining which is the right path for you, be sure to factor in your unique situation, goals, and interests. Join our DOCTORS INVESTMENT CLUB today if you're interested in learning more about passive real estate investing opportunities.