Introduction 

If you’ve been keeping up with the news in the real estate world, it’s no secret that investing in commercial properties has been very profitable. In fact, some have called it “the new gold rush.” As with any investment opportunity, however, there are risks involved, including potential losses on your investment. So what if you could reduce those risks while still enjoying the potential for high returns? That’s what we’re going to explore in this article: how to get into real estate syndication and how it differs from conventional real estate investment methods. 

What is Real Estate Syndication? 

Syndication is a process through which an investor joins together with other investors in order to pool funds and purchase real estate. Syndication is typically used to buy a single piece of property or multiple properties, but it can also be used as part of an asset allocation strategy. An investor who is interested in entering the market may choose to syndicate because he or she does not have enough capital on hand or because he or she feels comfortable investing only when there are several people involved in the deal. 

The real estate syndication process 

The real estate syndication process is more involved than you might think. This is not a one-size-fits-all solution that can be thrown together in a few days. Instead, it requires an in-depth understanding of the market and how to best position your project for success. 

If you’re interested in pursuing a real estate syndication, it’s important to understand that this isn’t something that happens overnight or even over the course of several months. The process takes time—sometimes years—and typically involves multiple rounds of negotiation before any deals are finalized. That’s why it’s important to get started as early as possible if you want your property to be ready when the market hits its stride again! 

Specific Activities of a Real Estate Syndicator 

In order to develop a syndication, you must first determine your role in the business. You should decide whether you want to be an investor, developer, or both. Then, put together a plan for the project that includes: 

  • A detailed description of the property and its location 
  • Plans for financing (how much money will you need?) 
  • Marketing strategies (who are your buyers? How do they like to buy?) 
  • A legal structure for your company (Private vs Public) 

Once you have all of these things prepared and organized, it’s time to start developing! In addition to putting together these documents above as well as others listed below, there are many different activities involved in developing real estate: 

Real Estate Syndicator Compensation 

Compensation to real estate syndicators is typically based on one or more of the following: 

  • Amount raised. The more money you can raise, the more compensation you will receive. 
  • Amount invested. If you bring in a large amount of capital, you will be compensated for your efforts accordingly. 
  • The number of investors involved in the deal(s). The larger your group, the greater your rewards should be – both immediately and over time through future deals with those same partners and investors (if applicable). 
  • Amount returned to investors at maturity/exit point(s). This is especially true if there has been an increase in value during that period of time versus when they initially invested in your project! 

It would be nice if we could all get together and invest in real estate, but there are legal and practical hurdles that have to be overcome. 

It would be nice if we could all get together and invest in real estate, but there are legal and practical hurdles that have to be overcome. 

The first step is to make sure the investment fits the investor’s risk profile. This may mean investing only a small amount of money in your first project. Then, you would earn experience and confidence by investing more money in subsequent projects. 

If you are an accredited investor (i.e., someone who has over $1 million dollars’ worth of assets), then you’ll need to find an experienced person or company who can help with real estate syndications — one that specializes in this area of law — so that your individual interests are protected from liability due to the complexities involved with large-scale real estate transactions such as these. 

Conclusion 

Real estate syndication is a powerful tool that can help developers raise capital quickly while reducing the cost of financing. With so many people wanting to get into real estate investment, it’s no surprise that this model has taken off so much in recent years. 

If you’d like to get involved in African Real Estate Syndication contact [email protected] for more information!