The Modern Syndicate: Real Estate Co-Investment

August 14, 2017

Syndication (n):  a group of individuals or organizations combined or making a joint effort to carry out specific transactions or negotiations. 

 

Modern Syndicate: Elevating that “joint effort” to a level of combined expertise and diverse group resources that maximizes investment potential.

 

It’s no secret that investment properties provide great return, but often times people seeking real estate investment find it difficult to know where or how to start. Owning multiple properties is expensive, but pooling money with syndicates allows new investors to get their foot in the door, feel confident about their investment, and push their return farther than individual investment initially offers.

 

The syndicate model provides a vehicle for investment that includes leaders-- knowledgeable and experienced investors of the niche market-- and backers-- someone on board with the investment goals but who lacks the experience or direction to spearhead the investment on their own. Combining these two angles into a group allows the leaders to utilize more capital for investment and the backers to partake in smart investment confidently with minimized risk.

 

At the Sound Mortgage, we seek to utilize our knowledge to provide strong, transparent, and mutually beneficial syndication platforms. We use our constantly-updating expertise to package investment opportunities and our local, client-first mission to prioritize the best term negotiation for all involved parties. We know that smart investment requires research, so here are some aspects to take into account when considering group investment:

 

Pros:

  • Leverage more money per deal

  • Gain property ownership

  • Less paperwork management than investing individually

  • More capital investment could provide access to better investor rights

  • Access wealth of expertise from other investors

 

Cons:

  • Insuring trustworthy partnership

  • Negotiating terms

 

The Sound Mortgage prioritizes working with clients' individual needs to findsolutions to these perceived cons. We recommend getting to know your investment leader, ensuring your goals align, and gaining a sense that you will be able to do your due diligence with flexibility and compromise. Forming LLC partnerships and establishing full contracts and documents is a necessary step one to verify the investment group is all on the same page, before any money is exchanged.

 

At The Sound Mortgage, our ears are always open and we share our wealth of knowledge to ensure our clients are informed and satisfied. For any inquiries on partnering with us on group investments, please Request a Consultation or contact us at thesoundmortgage@gmail.com.

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