Real Estate Syndication | The Basics 2020

Video Transcription

This is Alice
Alice has saved up $25,000 and is looking to invest to grow her wealth.
Alice first considers purchasing a single family home with a down payment of her $25,000 that she has saved
Alice is very hesitant towards this because many of her friends have told her the horrors of self managing.
Alice is very conflicted until she is introduced to Joey who tells her about joining a syndication
Joey tells Alice that syndication allows Alice to invest her $25,000
Combined with other investors capital like Joey
To invest in properties that are much bigger than they could afford or manage on their own.
Syndication allows Alice to buy something at a much higher value, faster, with less competition. Because it’s a much bigger asset, this means that Alice’s property will have a full time staff managing the property.
The amount Alice owns of the property will depend on the amount she invests.
Since Alice, Joey and all other investors own a piece of the business. Each investor is entitled to earn distributions, and depreciation from the asset! Alice and Joey can rest at night knowing they won’t have to deal with late night tenant issues, and property upkeep because their asset is large enough to support a dedicated team. Syndication is exactly what Alice needed to be able to grow her wealth for her and her family.