December 15, 2009

Real Estate Syndication: Does A New World Need a New Way?

The world has gotten sufficiently complicated, where many of the rules that have been written in the past need to be broken or disregarded so that we can move forward and break through the log jam.

This is true in the real estate syndication ampicillin 250 mg business, but it also applies to the operations of traditional businesses as well as the entities that fund them. Many syndicators feel competitive with one another, and therefore, they refuse to share information that could help both of them to move forward. This competitive spirit is not only misplaced, but it's slowing down the entrepreneurial promoters' ability to move forward.

Small syndicators are really not competitors with one another. Instead, small syndicators have to worry about their ability to compete against the larger players in that market who are gobbling up all of the properties and the deals that could otherwise be shared. The only way for small entrepreneurial syndicators to succeed is by working together to combine deals, to pool investors, and to share fees. Otherwise, trouble will be on the horizon for all of us.

This may seem somewhat counter-intuitive, but the only place where we compete is really in the acquisition of investors — and there are plenty of accredited investors to go around. We might seem to compete for properties, but there are plenty of properties all over the United States for us to cooperate on. And if we can figure out a way to share fees, then everything else will be easy.

One of the most important benefits that I promote at the Real Estate Deal Making Symposium and Syndication Seminar is the networking activities that take place between the participants. I promote this not only because I believe we can help one another intellectually, but also because I believe that doing deals together is the way to go.

Since there are four skills that are required to put together a syndication, and since most of us don't have (or at a minimum we don't specialize in) all four of these skill areas, we have to cooperate with others who do work in those areas and who do specialize in those skills.

Consider the following major skill categories and determine the one that you are strongest in. Then find others to fill in the gaps where you are lacking.

  1. Market Skills — Intense knowledge of the deals in the marketplace and being able to pick the right ones to syndicate.

  2. Capital Skills — Understanding and raising the money and how its structure will work for your deal.

  3. Property Management or Asset Management Skills — Looking after the real estate once you acquire it, with the ability to implement the business plan that is the basis for the investment in the project.

  4. Business Management — As the number of syndications increase, special skills will be required to deal with the attorneys, accountants, investors and other constituents interested in the investments that you have set up.

Don't take these four major skill areas lightly. Whether you are a promoter or an investor, you should make sure that your team has all of these skills in place.

If you believe that syndicating together is the way to go, then take advantage of the other syndicators who you know, and work with them. And if you don't know other syndicators, then get involved with us and our new organization (the National Association of Syndicators) because this business is a great business, but we have to do it a different way or it may not work out for any of us.

Join our new Facebook group http://tinyurl.com/yekewfz to learn more.

If you have an opinion or thought on this topic, please write a comment by entering your thoughts in the form below. Let us know what you think and if my thoughts resonate with yours. Our readers enjoy reading what others think. Send a link to this blog to one or more of your friends and get them to become one of our subscribers. This will help us to expand our circle of influence and allow us to share this and other great material with your friends.

We are in the real estate syndication business. We invest in properties and we offer seminars to assist others in acquiring the skills needed to syndicate properties. purchase diet pill This topic is very relevant for helping you in raising funds or investment capital for any real estate investment, whether it be for commercial property or another kind of investment property.

Thank you for being one of our loyal readers. We appreciate you and we are rooting for your success.

About Joel G. Block, President of Growth-Logic, Inc. Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenue and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker, advisor and faculty member of the iLearningGlobal community.

To bring Joel into your company, please visit http://www.joelblock.com or http://www.growth-logic.com. Also, be sure to check out our newest project: a blog to organize the blogs that cover entrepreneurship — http://www.entrepreneur-hub.com. And finally, for film makers: http://www.hollywood-dream.com/ and http://www.filmfundingblog.com — our newest projects.

Go Out And Stake Your Claim!

P.S. To discover how to gain capital to grow your real estate business exponentially
please click here ==> Harnessing the Power of Syndication


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Comments on Real Estate Syndication: Does A New World Need a New Way? »

December 16, 2009

Craig Higdon @ 8:15 pm

Let me amplify on this concept of sharing investors. We face the same misconception in syndicating debt (called fractionalizing trust deeds). However, investors are not always liquid at the same time! Thus, when you share your list with another syndicator, you both access more potential funders when you have a deal to fund.

If syndicator A has a deal to fund by Jan. 15th, some of his investors may not have funds available by the 30th. If syndicator B has investors who are liquid on the 15th, but has no deal to place in front of them, they will find another investment on their own. Why not network your lists and benfit each other? It may then be that Syndicator A's list has some liquidity on Jan. 30th when Syndicator B has a deal to fund, but Syndicator A is out there looking for a new property.

Working together (multiple syndicators makes it even better) vastly improves your chances of being able to access the capital that you need to fund good transactions.

April 22, 2010

marc tow @ 8:25 pm

not all syndicators are made alike some focus on load lifetstyle and dreams some focus on investor protection
this is why you don't share investors

November 23, 2010

Jason @ 6:42 am

Sensible tips on building a syndication! Your post is well-written and very insightful.

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