When is it Appropriate to Consider Syndicated Investing?

If you have taken even one look at our website, you have seen the word “syndicate” all over the place. And while a quick Google search will reveal that real estate syndication is simply an effective way for investors to pool their financial and intellectual resources to invest in properties and projects much bigger than they could afford or manage on their own, it doesn’t tell you when exactly it is appropriate to syndicate. Granted, this is a decision left to each investor individually, but there are a couple of key reasons why we believe that syndicated multi-family real estate is the way to go!

Community, Accountability, & Relationships

One of the greatest assets to working in syndicated real estate is that you aren’t in it alone. There is accountability to other investors, and the law, and as a result, you have a little bit of a safety net. There are contracts that are signed, paperwork that is drawn up, lawyers and attorneys who have eyes on the proceedings. This is great protection for your money, but it also means that all parties involved have a vested interest in your deal going well, so they are going to do what is necessary to make it successful. It is also a place to pool ideas, and find out what will be best for you as a group of investors – making sure that you are all getting out of it what you need!

Strategy

Real estate is all about strategy and timing. You may have the perfect property in mind, but if the timing isn’t right and you don’t have a rock solid strategy, then you could crash and burn. On the other hand, you have to be ready to jump when the opportunity presents itself, so really, too fast or too slow and you are out of luck. This is where syndication is important. Because of the accountability that we discussed above, you’ll want to have all of your ducks in a row so that when you are ready to move, you don’t have to wait around for the paperwork and legal documents to be prepared. Without these documents, the syndicator will not be able to collect funds for the deal or move in well thought out strategy.

Customer Relationship Management

Customer relationship management, commonly refered to as CRM, can mean many different things: Some consider it to be the software designed to help manage clients, some think of it as a business philosophy and others view CRM as a process that involves strategy, software and systems to gather, nurture and ultimately convert contacts to clients. In the world of Syndicated real estate it is a little of all of those things, and is invaluable to investors. Access to CRM can help make or break a deal, and can only be obtained by having a licensed real estate agent in your group. They will have access to properties and information that individual investors do not and this can prove to be the tool that helps land better deals faster.

Are you interested in investing to add value properties that happen to be situated in popular housing markets? Let us help! Magnolia Design Properties is a real estate investment company that is honed in on add value multifamily properties in the B+/ B- class and we would love to have you join us in investing! Let us do the heavy lifting of property acquisition, and head over to our contact page and fill out the form so that we can contact you with information about investment opportunities that you can join us in!

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