5 Things Every New Investor Should Do Before Investing In Their First Real Estate Syndication

When you first begin to consider real estate syndication as an investment option, it

can feel lonely, intimidating, or even like you are going in blindfolded.

I personally experienced fears around investing in a property I had never seen, concern

about how I would get my money back, and doubt around the inability to log into an

account and see my money.

These fears were addressed head-on through research. Every article I read and

every conversation I had built my certainty until I began to feel confident toward

taking the plunge.

If you are considering your first syndication and feeling hesitant, I recommend doing

your research, connecting with other investors, reading through previous deals, and

taking your time.

Keep in mind these deals fill up fast. We missed out on several deals because we did not review the offering in a timely manner.

1. 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.

Books:

Rich Dad, Poor Dad by Robert Kiyosaki

The ABCs of Real Estate Investing by Ken Mcelroy

Podcasts:

BiggerPockets Podcast

Best Real Estate Investing Advice Ever with Joe Fairless

The Real Estate Syndication Show with Whitney Sewell

2. Ask Questions

Relevant Facebook groups and forums like BiggerPockets can help you learn what

questions you should be asking.

It is likely that other people have asked about your same concerns and, just by

reading through the forum’s questions and answers, you will gain clarity.

Remember there are no dumb questions and that you have the right to be diligent

about gathering answers to your concerns.

3. Connect with Other Investors

A successful investor needs a supportive community, and considering that

syndication is a group investment; you will want to get networking.

Any new investors will 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 like BiggerPockets, local networking

events, or by asking sponsors if they will connect you to their current investors.

4. Review Previous Deals

Finding comfort with financial projections, summary data, and investment lingo may

feel overwhelming.

As you review more investment summaries, you will start to understand the flow of the

deal packages, how each sponsor communicates, and exactly which investments

interest you.

5. 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.

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.

Considering Everything

If you take nothing else from this article, remember it is completely normal to feel

skeptical, anxious, and even timid when making your first syndication commitment.

The ability to act 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.