October 31, 2007

Taking Real Estate to the Next Level

I'm asked more frequently to talk about real estate related topics than any of the other areas where I help people to raise capital and structure their businesses. The area where I specialize in real estate is known as real estate syndication.

Syndication means putting many investors together into a pool and then a general manager or general partner invests that money into an asset on behalf of all of the partners who put money into the deal. The investing partners are generally silent partners and the manager has virtually complete control (within reason) of all the activities of the partnership.

As the foreclosure market heats up, more and more people are calling to ask how they can pull funds from investors so that they can get involved in the real estate syndication boom. There are many people who want to invest money into real estate. There are also plenty of people who are well informed about real estate who want to take those funds and assume the responsibility of being the promoter of a syndication that will buy the real estate.

The promoter typically receives fees for organizing the partnerships and the promoter receives fees on an ongoing basis for managing and taking care of it. The promoter also receives a percentage of the back end profits that are made on the deal. It's a great deal for the promoter and if the promoter does a great job at picking good properties, it's almost guaranteed that you'll make a lot of money. More money is made in real estate syndication than in almost any business that I've ever seen.

The funny thing about the foreclosure market that everybody wants to take advantage of is that we have just seen the beginning of it. One of the things that nobody talks about in the real estate foreclosure market is that many small businesses have been financed using home equity lines of credit as the primary financing structure for those businesses. The problem is that as the economy tightens up and as interest rates start to squeeze the borrowers, the owners of suffering businesses will no longer be able to make payments on their home equity lines of credit. This means that the business owner who is "vertically integrated" will suffer a domino effect — and once the business goes down, he or she will unfortunately probably lose their house too.

If organizing investors to buy real estate is something that is attractive to you, then call our office right away or e-mail us because we work with numerous investors and numerous promoters of real estate syndications to acquire properties at a discount and to structure deals that are favorable for all the parties. We can show you how to get into the real estate game in the most profitable way possible.

The real estate syndication business is not something that's known by many people because it requires more sophistication than just buying a property on your own. But it also affords tremendous more opportunity than any other possibility for two reasons. First, you're making money using other people's money and second, the more money you raise, the more real estate you can acquire.

You are welcome to call our office and talk to us about the opportunities in this market because there's a lot that we can show you about how to get into the real estate syndication environment.

About Joel G. Block

Well known in the business community, Joel Block is a best selling author, speaker, and business strategist. Frequently a principal in his transactions, Joel has raised tens of millions of equity dollars for his ventures, which have included real estate syndications and privately held businesses.

Joel’s career is highlighted by the launch of a financial publishing company which he grew nationwide and later sold to the Los Angeles Times. More recently, Joel works with scientists, engineers, technologists and others to help them optimize their entrepreneurial opportunities. Would you like to get a private phone consultation with Joel? Visit www.joelblock.com/capital for details.

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