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5 Things Every New Investor Should Do Before Investing In Their First Real Estate Syndication



The first passive investment my husband and I made made our hearts raced with both excitement and anxiety.

We'd recently discovered apartment syndication and wiring that first $50k to an investment group we barely knew felt nerve-racking.


When you first begin to consider real estate syndication as an investment option, it can feel equally exciting, lonely (my colleagues didn't understand what I was doing or why I was excited about investing in apartments and I couldn't adequately explain the process), intimidating ("Are we sure we placed the money with the best group and solid deal?"), or even like you’re going in blindfolded.


We'd feasted on information leading up to our first passive investment and attended a conference on apartment syndication which helped calm all our feelings.


Research (reading articles, listening to podcasts) and conversations with other investors in-person and in focused online communities build our confidence to take the plunge.


If you’re considering your first syndication and feeling hesitant, do your research, connect with other investors, read through previous deals, and take your time (but not so much that you don't ever take action).

Do Your Research

The best way to build your investing confidence is through self-education and research. Listen to podcasts, read books, and find websites on real estate.

Books:

Rich Dad, Poor Dad by Robert Kiyosaki

Passive Investing Made Simple by Anthony Vicino & Dan Drueger (Anthony is a good friend and this book is awesome!)

How to Create Lifetime Cashflow Through Multifamily Properties by Rod Khleif (check out my recent presentation at his Denver bootcamp HERE)

Principles of Real Estate Syndication by Samuel Freshman

Podcasts:


Financial Freedom with Real Estate Investing with Michael Blank and Garrett Lynch (Once I discovered apartment syndication I devoured all of Blank's content.)


Best Real Estate Investing Advice Ever with Joe Fairless (check out my episode HERE)


The Real Wealth Show with Kathy Fettke


Ask Questions

Relevant Facebook groups and forums like BiggerPockets can help you learn what questions you should be asking.

It’s likely that other people have asked about your same concerns and, just by reading through the forum’s questions and answers, you’ll gain clarity. You'll also become familiar with common industry terminology.

Remember there are no dumb questions and that you have the right to be diligent about gathering answers to your concerns.

Connect with Other Investors

A successful investor needs a supportive community, and considering that syndication is a group investment, you’ll want to get networking.

Any new investors will share similar anxieties, questions, confusion, and excitement. Experienced investors can provide invaluable firsthand accounts of their experience with various projects and sponsors.

Find other investors through online forums like BiggerPockets, local networking events, or by asking sponsors if they’ll connect you to their current investors.

A couple very active Facebook groups I've appreciated are Blank's Apartment Investor Network and the Real Estate InvestHer Community. Both groups are very active with great conversations from experienced and novice investors.

Review Previous Deals

Finding comfort with financial projections, summary data, and investment lingo may feel overwhelming.

As you review more investment summaries, you’ll start to understand the flow of the deal packages, how each sponsor communicates, and exactly which investments interest you.

Three Keys Investments offers a variety of investment opportunities designed to support our diverse investor needs. Click below if you'd like to review and compare a Three Keys Investments value add deal to new development



Take Your Time

Each new investment opportunity fills up quickly. This can make new investors panic and start to believe they are missing the best deals. Remember, there will always be another opportunity but being prepared by understanding the process and knowing how to access your funds will help you reach your goals.

Allow yourself time to complete the steps laid out here, so that when you make your syndication choice, you are confident about every step.


Considering Everything

It’s completely normal to feel skeptical, anxious, and even timid when making your first syndication commitment.

The ability to take action is what separates the successful from those who give up.

Your first real estate syndication deal is a huge milestone in your investing journey, and, even though your head might be spinning now, this is a time to savor.

We're here to support you through education and conversation! Be sure to schedule a time to speak with us so that you can grow your confidence!