Secrets of Successful Syndication

Tired of waiting for someone else to create a job for you or give you a raise?  Take control of your own future by discovering how to make big money doing big deals through real estate syndication.

Syndication is simply putting together a group of investors and use the combined resources to take advantage of more and bigger opportunities for everyone’s benefit.  And when you’ve fully deployed your own cash and credit, syndication is a great way to keep going.

Now is one of the greatest times we’ve seen to become a real estate syndicator. Distressed properties and notes are abundant.  Assets can be purchased for pennies on the dollar.  Best of all, you’re not preying upon the unfortunate.  You’re helping clean up a big mess and playing a vital role in revitalizing the economy.

With all the liquidity being pumped into the economy, there’s still time to take advantage of low interest rates.  Longer term, many economists expect inflation – which means rising asset values (equity!), rising rents and rising interest rates.  But inflation hasn’t hit real estate yet, so there’s a window of opportunity to snap up deals.

We could go on and on about why the next 2-3 years look to be among the best ever to be a buyer.  But that’s not the point of this article and we’ve discussed it many times on the broadcast.

The real point is that syndication is a great opportunity for sharp, hardworking people to become real estate entrepreneurs. In his new book, The Sleeping Giant, best selling author and Robert Kiyosaki Rich Dad Advisor Ken McElroy says a new American Dream is upon us: the age of the entrepreneur.  Gone are the days of working four decades for the same company and retiring on a comfortable pension.  And the last time we looked, Social Security isn’t looking very secure.  So you need a good paying job now AND a way to build up wealth over the the long term.

If you’re unemployed, under-employed or concerned about the future of your job or company, then you might want to give serious consideration to starting your own business. And while there are many different businesses to choose from, in most all cases you’ll need to organize capital to get started.  For the average Joe, that means using up his life’s savings, home equity and all his available credit card lines – literally betting the farm on the success of the business.  That’s one way to go.

On the other hand, wouldn’t it be better if you were or raise some private investor money where neither you nor any of your investors are ruined if things don’t go as planned?  Shared risk and shared reward.  That’s all a syndication is.

Of course, that begs the question: what kind of a business?

Obviously, we like real estate – and for many reasons.  First, it’s everywhere and not overly complicated – at least compared to starting a bio-tech firm or a software company.  That makes it possible for you to get up to speed and run the business effectively pretty quickly.  But it’s also a business that your investors should be able to understand and get excited about without needing Ph.D.’s.

Most people can see there are bargains galore in real estate right now, but because the dollars are big they can’t take advantage of them…by themselves.  They don’t have enough money, time, knowledge or connections.  That’s why so many people buy mutual funds instead of picking their own stocks.  They are effectively hiring a fund manager to do the hard work of investing.

When you organize a real estate syndication, your investors are essentially hiring you to buy, manage and sell the investments  – just like a mutual fund manager.  Except instead of investing in stocks, you’re investing in real estate or notes.  Now before you freak out, remember that you’ve probably already bought or sold a property, rented a property, gotten a loan or otherwise been involved in some real estate transactions.  So you already have some experience.  And if you’re a real estate agent, loan officer, appraiser, contractor or someone who deals with the business of real estate on a daily basis, you’re way ahead of the curve.  Remember, most mutual fund managers don’t have to know how to run the companies they invest in, they just have to know how to recognize good business models and managers.

Of course, in the spirit of full disclosure, if syndication were THAT easy, then everyone would be doing it, right?  True.  However, we bet there are many very capable people out there who would be very successful syndicators, but it never occurred to them they could do it.  And like any manager, it’s a huge responsibility to be in charge of other people’s assets.  Yet, many people do a fine job for their employers every day, but  just don’t think of it as asset management.  Yet if you’re a manager of any kind, you’re responsible for someone else’s assets –  their money, their customers, their reputation, their property, their information – on a daily basis.  If you do a good job there, the odds are good you will be successful in real estate – which is quite possibly a lot less complicated than your current day job.

Still, it’s important to be properly trained. And the task of organizing an investment syndication is not one to be taken up lightly.  There are laws to follow and lots of details to be aware of.  Again, if it was brain dead easy, than everyone would be doing it.

So where can you go to learn the secrets of successful syndication? You can and should read books, take classes, and get around people who are doing it.  Much of which you can figure out on your own if you have the time and motivation.  But if the gap between where you are and where you want to be looks to big to jump on your own, we have something for you!

We’ve imposed upon our outstanding Investor Summit at Sea™ Faculty, which includes Robert Kiyosaki’s Rich Dad Advisor Ken McElroy, plus international real estate developer Beth Clifford and attorney Mauricio Rauld, to conduct an all day training called The Secrets of Successful Syndication Seminar on April 3rd in Fort Lauderdale, Florida (you’ve been looking for a great reason to visit beautiful South Florida, right?).

Discover what it takes to organize and operate a real estate syndication business, where you can go from zero to a full time income (even part time!) in six months or less.

For more information and to enroll on-line, click here now.

The Real Estate Guys™ Radio Show podcast provides education, information, training and resources to help investors make money with their real estate investing.

2/27/11: Fast Track to Full Time – Starting Part Time

Why wait for a job or beg for a raise, when you can take matters into your own hands and make it happen now?  Good question!

To find the answer, we tracked down a good friend who successfully made the leap from a modest salary to professional investor – and he did it fast.

In the studio for some fast talk on this hot topic:

  • Your fast talking host, Robert Helms
  • Your part time co-host, Russell Gray
  • Special Guest, former school teacher turned full time real estate developer and syndicator, David Campbell

In good times and bad, there are always people who want to make more money, be their own boss and enjoy the rewards of running their own business.  Many people start out simply investing in real estate, but quickly become enamored with the thrill of the deal and the big money, so they decide to go full time.

Since it can take a decade or more to build up enough passive rental income to equate to a full time job, it’s not uncommon for serious investors to go into the real estate or mortgage brokerage business as a way to get make a full time income while getting into the deal flow.   But to do well in brokerage, you often need to focus on a narrow geographic, demographic and product niche.  Plus, brokerage is highly competitive, requiring constant selling to be successful.  There’s nothing wrong with that, but some people find it harder work than it’s worth.

But there are other ways.  Some people buy, rehab and re-sell houses.  Others build from the ground up.  Still others trade in real estate backed notes.  Some people raise a bunch of money and act as fund manager, providing capital to others, and earning a management fee and profit sharing for their efforts.   If you’re new, that may sound very intimidating.  But in this episode, David Campbell shares not just what he did, but where he got the belief, help, encouragement, training and support he needed to supercharge his investing career and get on the fast track to big opportunity.  You’re going to like this one!

Listen now!
Don’t miss a show – subscribe to the free podcast!
Want More?  Sign up for The Real Estate Guys™ free newsletter!

The Real Estate Guys™ Radio Show
podcast provides education, information, training and resources to help investors make money with their real estate investments.

Hard Money National Conference – March 3rd, 2011

Join The Real Estate Guys™ in Las Vegas on March 3rd 2011 as we check out the Hard Money National Conference at the Mirage Hotel & Casino!

For 36 years running Leonard Rosen has been training real estate entrepreneurs how to get into the hard money business.  With all the turmoil in conventional money, this is one of the best times to be in the business of providing alternative funding.

Whether you’re a mortgage pro or a cubicle dweller looking to start your own business, there are lots of opportunities in hard money.

“Hard money” doesn’t mean the borrower is “hard up”!  It’s just a term used to describe private money versus institutional money.  Income investors are always looking for better yields, and when conventional money is hard to find or takes too long to get, private money often gets the job done.

We  agree with Joel Grey in Cabaret, who sang “Money makes the world go ’round”!  So we’re headed to Las Vegas to see what’s happening in the world of hard money.  While we’re there we’ll capture some interviews and some Backstage conversations.  Stay tuned!

Meanwhile, if you’re a serious investor, it behooves you to get “in the know” about how hard money works and how to make it work for you, both as an investor and an entrepreneur.  Besides, you were looking for an excuse to go to Las Vegas anyway, right?

To learn more about the event, go to pitbullconference.com.  Then come say hi to The Real Estate Guys™ !

2/20/11: The Coming Wave of Inflation – Profiting When the Levee Breaks

Central banks around the world have been pumping “liquidity” into their respective economies since 2008. In the USA, the Fed has gone through two rounds of “Quantitative Easing” (QE1 and QE2) and has been talking about a third.  Meanwhile, the government is piling up debt at a record pace.

What does it all mean?  And where is all this “liquidity” going?

Slogging through the headlines in our galoshes:

  • Your host and rainmaker, Robert Helms
  • Your co-host and chief drip, Russell Gray

Have you ever wondered where the Fed gets the money it uses to purchase government debt or toxic assets?  We’ve heard it said they have a magic checkbook – one whose checks NEVER bounce.  Hey! We want one of those!

So when the Fed buys stuff in the “open market”, where does the money go?  And once it enters the economy, how does it spread around?  Will any of it puddle up in real estate?

If you’ve been baffled by all of this, but can see gold, oil, gas, groceries, clothing and your Big Mac and Starbucks all going up, then you already have part of the answer.  Maybe those pundits who proclaim no inflation are really all wet?

Tune in to this episode as we explain how the added liquidity created by expansionary monetary policy dams up and then overflows through a series of levee breaks, eventually bringing a wave you can ride.  But you need to be on your board and paddling well before the dam flood comes.

Remember:  when asset values go up (denominated in dollars), equity happens. If you want it to happen to you, you have to get in while the tide is low, then be lifted by the rising waters.  So grab your rubber ducky and let’s get our feet wet.

Listen now!
Don’t miss a show – subscribe to the free podcast!
Want More?  Sign up for The Real Estate Guys™ free newsletter!

The Real Estate Guys™ Radio Show podcast provides education, information, training and resources to help investors make money with their real estate investments.

2/6/11: Ask The Guys – Who, What, Where, When, Why and How

There’s no such thing as a stupid question.

Well okay, there actually are some pretty stupid questions, but that’s why we take questions by email and not call in.  That way we can filter out the bad ones and just bring you the really good ones!  We really aren’t qualified to advise you on what color to do dye your hair or what style of nose ring to purchase.  But if you have a real estate related question, we’re your Guys!

In the studio to provide powerful pontifications in response to several of the great questions we receive each week:

  • Your host and hero, Robert Helms
  • His trusty sidekick, Russell Gray
  • Wise sage of all things real estate, The Godfather of Real Estate, Bob Helms

For this episode of Ask the Guys we reached into the email grab bag and pulled out some gems:

From a listener in Australia (who understandably thinks we’re amazing), who just bought two properties (good job!), and wants to know should he buy more – in his wife’s name with “negative gearing”.  Hmmmm…. you need to be careful about anything negative when your spouse is involved – and what type of gear you use with your wife…well, that’s really none of our business.

For our next question, Simon says he put in a deposit on a pre-construction property, but undisclosed costs have made him nervous.  Now Simon says he wants out of the deal and his deposit back.  But what does the contract say?

From Philadelphia, the city of brotherly love, Kevin and his siblings have inherited dad’s duplex and are debating what to do.  One sibling says keep it, the other two want out.  What’s a brother to do?

Rasean has aspirations to become a real estate syndicator (what a good idea!) and is trying to track down the bible of syndication, written by our friend Sam Freshman.  Hint: The Real Estate Guys™ have a Recommended Reading bookstore on our website under our RESOURCES tab.

And Martin, who lives in Smallville, wants to know if he should invest in his own backyard or seek super returns in Metropolis.  So we ducked into the nearest phone booth (hard to find these days!) and fired up our x-ray vision to look for the answer.

If YOU have a question for The Real Estate Guys™, just click on Ask the Guys to send us your query.  Then, Walter in the mail room will throw it in the mail bin, where we’ll dive in later to pluck questions for some future show.  Maybe we’ll pull yours out, so keep those cards and letters coming!

Listen now!
Don’t miss a show – subscribe to the free podcast!
Want More?  Sign up for The Real Estate Guys™ free newsletter!

The Real Estate Guys™ Radio Show podcast provides education, information, training and resources to help investors make money with their real estate investments.

1/30/11: Forecasting the Future – Real Estate Industry Predictions for 2011

Experts predict prices will either rise or decline.

It’s that time of year where we like to take a look at what all of the real estate pundits are predicting for the upcoming year.  Obviously, predicting the future is an inexact science….well, okay.  It’s actually not science at all.  More like alchemy.

But it’s always interesting to see what some of the more notable people think – and why.  It helps stimulate thought and holds the prognosticators accountable.  Then, this time next year, we can look back and see who got it right – and for the right reasons.

In the stainless steel radio DeLorean for a trip back to the future:

  • Your host, the Doc Brown of real estate, Robert Helms
  • Co-host, “Hello? McFly!”, Russell Gray
  • Father time himself, the Godfather of Real Estate, Bob Helms

Listen now!
Don’t miss a show – subscribe to the free podcast!
Want More?  Sign up for The Real Estate Guys™ free newsletter!

The Real Estate Guys™ Radio Show podcast provides education, information, training and resources to help investors make money with their real estate investments.