Real estate syndication is formed when a group of people is pooled together with the same investing goal, which is to purchase property. Any type of property can be purchased, residential or commercial: • Houses • Multi Family Buildings/Apartment Buildings • Strip Malls/Shopping Centers • Land/Construction Developments • Hotels/Self Storage Facilities Since the lending market has tightened up their requirements and ability to lend, real estate syndication is definitely a way to purchase properties fast and without limitations of funds and what type of properties. An initial group can be formed of only a couple of people, but it can easily grow to dozens of investors, therefore providing the possibility to raise a lot of capital for big projects. A syndicator is a facilitator and organizer for this group of investors: he/she is responsible for: • Finding properties • Analyzing the deals in order to establish if they are suitable for the goals of the group • Supervising construction and maintenance • Selling the properties or secure long term financing • …show more content…
First of all, it is necessary to have some experience in locating properties and analyzing deals. Most investors that are willing to pool their money together in these types of partnerships are individuals who do not want much involvement in the project itself (they have careers or other investments that they are into) and need to develop a trust for the syndicator. Therefore in the beginning by networking with investors and familiar business acquaintances, it should be enough to raise a couple of people with available funds for starting this enterprise. As the business develops a track record, it will be easier to include other members in the group, either by word of mouth or advertising. People, especially if they don't know the syndicator, do want to see a track record or some type of background of his/her experience in real