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Real estate syndication has become a popular method for investors to pool their resources and invest in larger, higher-value commercial real estate deals they wouldn't have access to individually. Let's drill the actionable steps to get your first real estate syndication under contract: https://syndicationpro.com/blog/essential-steps-to-get-your-first-real-estate-syndication-under-contract
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HOW TO GET YOUR FIRST REAL ESTATE SYNDICATION UNDER CONTRACT syndicationpro.com
Getting your first real estate syndication under contract might seem daunting, but knowing the right steps to take in advance can make becoming a sponsor of real estate syndication projects an exciting and rewarding experience. Real estate syndication has become a popular method for investors to pool their resources and invest in larger, higher-value commercial real estate deals they wouldn't have access to individually. In this PPT, find the tips for streamlining your subscription documentation processes.
01 Real Estate Syndication Deals 101 • Real estate syndication deals always involve a sponsor responsible for identifying profitable properties, conducting a due diligence process, & reaching out to potential investors. • Accredited or non-accredited investors (depending on whether it's a 506(b) or a 506(c) deal), provide the majority of the capital required for the purchase and receive a percentage stake in return, along with a distribution of profits from cash flow and the sale of the syndication investment.
02 Your First Steps as a Real Estate Syndicator • When you find a potential investment property and present a reliable case for cash flow and profit, despite the risks involved, to prospective investors, they'll jump at your business plan. • The best deals aren't found on the open market. So, prioritize building relationships with brokers who are already dealing with real estate syndicators consistently.
03 Drafting Offering Documents for Real Estate Syndications • Once you have a group of interested passive investors , it's time to formalize the business plan by producing an executive summary, a subscription agreement, an operating agreement, and a limited partnership agreement for each passive investor. • Since deal sponsors aren't typically syndication attorneys, copywriters, or financial analysts, this can be the toughest part for the deal sponsor team. Luckily, expert syndication software like SponsorCloud.io is available to reduce the time you spend on admin work.
04 The Shortcut to Closing Real Estate Syndication Deals • Once you've raised capital and found the deal, you just need help with the formalities like documentation and tracking earnings/distributions. • SyndicationPro helps manage investor relations and offers features like online reporting, automated distributions, and investor communication tools. All of which makes it easier to keep your investors informed and engaged throughout the life of the investment.
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