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How to Invest in Big Real Estate Deals Without Being Rich

08 Jun I By Jeffrey Holst

We promise “We’re not the Mafia!”

In this episode we talk about the often misunderstood topic of real estate syndication. We talk about how to invest in other peoples deals and how ordinary investors can own larger apartment complexes and other large commercial projects. We talk about the different ways to invest in other peoples deals, through lending, partnerships and limited or passive partnerships. We dig deeper in to limited partnerships and we talk about how they work and what you need to look for if you are considering investing in a syndication or limited partnership. We also cover the advantages and disadvantages of doing so including.

Advantages

i. Chance to get in to bigger deals

ii. Diversification

iii. Much more passive than most real estate investing—mail box money

iv. Often highly tax favorable—passive losses

v. Solid returns

Disadvantages

i. Less control

ii. Lack of Liquidity

iii. Deals rise and fall on the sponsors’ skills