THE SPARK INVESTMENT GROUP BLOG

The process of investing in a real estate syndication is very different from picking a stock or a mutual fund online. Furthermore, unlike typical investment properties, there are hold times, barriers to entry, and a whole set of expectations that you need to know about prior to committing to a deal. 

As a smart investor, you’ve got to know exactly why you’re choosing a particular investment in addition to the required credentials, the process, what’s involved, and how long you should expect to wait until payout. Guess what? You’re in luck!

The most important thing we focus on in a real estate syndication is capital preservation. In other words, we focus on how NOT to LOSE money. That’s our number one priority, as boring as that might sound.

Imagine spotting an old bookshelf sitting out on the curb. You pull over to check it out, and since it’s in good shape, you proceed to lug it home and give it a fresh coat of paint.

A few years later, you sell the shelf to someone else who claims to have the perfect spot for it.

You took something that had been overlooked, committed some sweat equity, and breathed new life into it. This is the essence of value-add, and it’s a commonly used strategy in real estate investing.

When you first begin to consider real estate syndication as an investment option, it can feel lonely, intimidating, or even like you’re going in blindfolded.

I personally experienced fears around investing in a real estate investment property I’d never seen, concern about how I’d get my money back, and doubt around the inability to log into an bank or stock 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 to move forward and make my first syndication investment and create a passive income stream.

Imagine with me, that your workday began with the usual routine, but halfway through your morning, you received the news you’d been laid off.

For many Americans, that means zero income starting tomorrow morning.

If you’ve ever experienced owning single-family or multifamily homes, you know that these investments require time and energy. Investing in residential real estate can be challenging because, typically, you as the investor wear many hats throughout the seemingly never-ending process. There are five key attributes to real estate syndications that make them a hard investment to pass up.

It used to be that you went to college, got a good job with a pension, and rode that wave until the day you retired. Things aren’t like that anymore and we’re 100% individually responsible for...