What is real estate syndication?
Real estate syndication is a way for investors to pool their financial resources to invest in properties much bigger than they could afford or manage on their own. The goal is to generate passive income.
How are deals put together?
The person or company who put the deal together (the Sponsor) is responsible for recruiting investors and keeping them up to date with the performance of the investment once it’s closed.
Who can invest in a syndicated real estate deal?
In the past, only the rich and most connected individuals could participate in real estate syndications due to restrictions around accredited investors and knowledge that the deal even exists. That is until the advent of crowdfunded real estate platforms like addy. With the power of technology, we make investing in real estate more accessible via a very low investment minimum of one dollar.
What is a standard timeline when investing in a real estate syndication?
Timelines vary however they generally follow the following steps:
- Get a property under contract
- Conduct due diligence on the deal (30-90 days)
- Start the equity process with investors (4-8 weeks)
- Prepare the memorandum and send to investors (1-2 weeks)
- Investors sign and fund the deal (1-2 weeks)
- Close on the property (2-4 weeks)
How do you manage a syndicated real estate deal?
This can be a very cumbersome process but rather than painstakingly finding and vetting people through personal connections, you can leverage technology to solicit investors online. From packaging the deal to generating documents and collecting signatures, addy can help to operationalize much of the investor acquisition, verification workflow, ongoing communications and tracking of the real estate asset(s).