There are at least 5 things every new investor should do before investing in their first real estate syndication in 2023. 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.
When I started passively investing in real estate, I personally experienced: hesitancy around investing in a property I’d never seen, worry about how and exactly when I’d get my money back, and doubt around the inability to log into an account and see my money and exactly how it was performing.
However, these fears were addressed head-on through research. Every article I read and every conversation I had increased my knowledge until I began to feel confident about taking the plunge into passive real estate investing.
If you’re considering your first syndication or passive investment and feeling hesitant, I recommend doing your research, connecting with other investors, reading through previous deals, and taking your time.
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.
Book Recommendations:
Rich Dad, Poor Dad by Robert Kiyosaki
Think and Grow Rich by Napoleon Hill
Podcasts:
Lifetime Cashflow through Real Estate Investing with Rod Khleif
BiggerPockets Podcast
Best Real Estate Investing Advice Ever with Joe Fairless
Ask Questions
Multifamily Facebook groups and forums can help you learn what questions you should be asking.
It’s likely that other people have asked similar questions and just by reading through the forum’s or group’s questions and answers, you’ll gain clarity.
Remember there are no dumb questions! You have the right to be diligent about gathering answers to your concerns.
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.
New investors often 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 and groups, local networking events, etc.
Review Previous Deals
Finding comfort with financial projections, summary data, and investment lingo may feel overwhelming. Or like it’s the last thing you want to do on a Friday night ..
But, as you review more investment summaries, you’ll start to understand the flow of the deal offerings, how each team communicates, and exactly which investments interest you.
Take Your Time
Each new investment opportunity fills up quickly. This can make new investors panic and start to believe they are missing the best deals. But I encourage you not to jump in until you are ready.
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.
Take Action
If you take one thing from this article, remember it’s completely normal to feel skeptical or anxious 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.
Want to take the first step on your educational journey?! Sign up for our bi-weekly newsletter HERE.