Next Level Assets syndicates real estate investments. In a syndication, investors pool their funds to acquire and operate a property, and share profits with the syndicator who finds, closes, and manages the property. This enables investors to diversify, reduce the risk & time-intensity of real estate investing, and participate in higher upside deals they could not find, vet, afford, or manage on their own. Typically, the investors receive a minimum yield before the syndicator receives a share of the profits – this gives the syndicator a greater incentive to ensure your investment success than perhaps any other professional in the real estate industry.

Some of syndication’s benefits include:

  • Partner With An Expert On Same Side Of The Table
    • Different than buying from someone on the other side
    • Operator makes money only after investors do
    • Operator has skin in the game and high success incentives
  • Expanded Opportunity Universe
    • Larger, higher-quality assets with scale efficiencies
      Commercial, multifamily, resort, land – not just SFR
    • Easier to invest far from where you live
    • Better financing options, 100% non-recourse to investors
  • Diversification
    • Smaller $/deal for each investor enables doing more deals
    • Enables geographic, asset class, and economic driver diversification
    • Requires a tiny fraction of the time to find, land, and run your own deal
  • Experts Do All The Work
    • Better network for better deal values: discounts, off-market
    • Better management: top-notch team of professionals @ scale
    • Less headaches: experts handle hard issues while you sleep
    • All deal info and due diligence is spoon-fed to you, not hidden
  • Risk Reduction
    • Diversification among more asset classes/locations/deals
    • More expertise & experts for due diligence ensures good buys
    • More expertise & experts to manage prevents blow-ups
    • Operator assumes all legal risks, not investors
    • You can never be forced to lose more than your investment
    • Unlike brokers, sellers, and others, syndicators are your partners

So, what are the downsides/risks?

  • Less control over management and exit timing: do you trust your experts?
  • Investors give up some of the profits: do the higher profits @ less risk offset it?
  • Promoter risks: is operator honest, expert, committed, and incentivized?
  • Project risks: is there a complete, detailed plan, risk assessment, and due dilly?
  • Deal terms: is the syndicator taking big front fees, or putting you first?

If you hold multiple real estate investments in the same asset class/geography and need diversification, or if finding attractive opportunities takes too much time from your career, or if you are a first-time investor looking to score and learn at much less risk than taking that big leap yourself, you should strongly consider syndication as an attractive investment alternative.

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