Comments on: What’s a Real Estate Syndication? A Hypothetical Example…

By: Joel

Joel — Tue, 27 Apr 2021 18:35:42 +0000

In reply to John-Paul Rodgers. Cheers John-Paul. Good luck - I'd love to hear how it all goes and your experience getting started.

By: John-Paul Rodgers

John-Paul Rodgers — Tue, 27 Apr 2021 14:59:13 +0000

This is a really good summary. I hope to syndicate for commercial properties within the next year or two, this matches all the research I’ve been doing. Keep up the good work!

By: Joel

Joel — Tue, 27 Apr 2021 03:58:08 +0000

In reply to The Millennial Money Woman.

Yep, it doesn’t matter how solid the project is… If it’s run by people you don’t trust, it’s probably not going to feel great or end well. Have a great week Fiona!

By: Joel

Joel — Tue, 27 Apr 2021 03:54:24 +0000

In reply to David @ Filled With Money.

Hey David, typically people invest in syndications because they believe the return is actually gonna be higher than SP500. If they are taking on more risk, they expect more return. For my fake deal (and keep in mind again all syndication structures have different payout schedules, etc), but for the deal i wrote about you’d get a 7.2% annual dividend *plus* double your capital in growth. So average annualized return would be like 20%+. I agree with you – if the return was equal, there’s no reason to take on the extra risk.

By: David @ Filled With Money

David @ Filled With Money — Tue, 27 Apr 2021 00:15:03 +0000

I know there are reputable syndication websites that offer real estate syndication opportunities that the average investor might not have access to. However, every time I think about it, why not just put the money into the S&P 500? I get the diversification but a 7.2% annual return is still a 7.2% annual return whether you get it in RE or S&P 500.

Have to wrap my head around it sometime. Maybe one day I’ll invest in a Real Estate syndicated deal!

By: The Millennial Money Woman

The Millennial Money Woman — Mon, 26 Apr 2021 10:16:44 +0000

Happy Monday Joel!

Thanks for sharing this article – I thought it was pretty cool to walk through your example. Honestly, you make such a good point when you say that it’s important to invest with like-minded people. You have to build a winning team around yourself, so make sure you network beforehand and know who you will be dealing with before financially committing.

Cheers!

Fiona