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.

12/26/10: Getting Started in Real Estate Investing…for the First, Second or Third Time!

Donald Trump is probably the most famous “real estate guy” who made it big, lost it all, then made it all back bigger and better than before.  What took him down you ask?  In his book, The Art of the Comeback, the Donald says it was complacency and The Tax Reform Act of 1986.   Remember that one?  It was that wonderful piece of legislation that crashed the real estate market and wiped out the Savings & Loan industry.  Oops.

Our point?  Actually, there’s a few, such as how important it is to pay close attention (the opposite of complacency) to ANYTHING (including boring politics) that might affect the flow of money into any asset class – especially real estate.  That’s one reason why we’ve had so many economists on over the last several months.  Which brings us to the main point of this episode of The Real Estate Guys™ Radio Show, which is to address the question: What is the best way to move forward in this market based on all of the lessons of past markets?

Pulling the sleigh of broadcast excellence over the mountains and through the hills (and valleys) of the currently snow covered real estate landscape:

  • Robert, the red-nosed show host, Helms
  • Russell, the noseless co-host, Gray (brown was the only color left in the box and he didn’t want to wear it)

When navigating your own real estate investing sleigh through the foggy night of post-recession real estate, it’s very handy to have a shiny red nosed guide (beer consumption does serve a valuable investment purpose!).  There’s nothing like experience to light the way for those just starting out.  And with low prices, a growing population, low interest rates, more renters, and less new building, it sure looks like a GREAT time to get started – or for those who got lost in the last financial blizzard, re-started and pointed in the right direction.

Focusing on the right fundamentals is essential to long term success.  Legendary football coach Vince Lombardi is said to have begun each year’s training camp by addressing his team of professional athletes. Lombardi would hold up a football and state the obvious, “Gentleman, this is a football.”  In other words, start at the beginning and build your career on a solid foundation of fundamentals.

So whether you’re brand new or a seasoned vet looking to kick off the New Year on the right foot, listen in as we unwrap some of the lessons of markets passed and hang ornaments of wisdom on your real estate investing tree.  Lots of people paid a big price for all these valuable lessons, so even though you get them for next to nothing, don’t overlook their importance.

May the New Year bring you and yours health, wealth and happiness!

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

12/19/10: Winding Down the Year – Maximizing Your Properties, Deductions and Strategies

Let’s face it.  Running even a fledgling real estate empire is hard work.  The only paperwork that’s fun is cashing those rent checks!  Nonetheless, the end of the year is a great time to step back from all the wheeling and dealing and do some strategic planning for the New Year.

In The E-Myth Revisited (on our list of Recommended Reading), author Michael Gerber says you must invest time “working ON your business instead of IN it”.  In Before You Quit Your Job (hey! that’s also on the recommended list!), our good friend Rich Dad Poor Dad (yes, it’s on the list too) author Robert Kiyosaki explains the importance of SYSTEMS in his B-I (Business Owner / Investor) Triangle.  The point is that being organized and thinking strategically are critical components of success.

But where to start?  That’s the topic of this episode!

Behind the microphones, in the Equity Sleigh, winding down the year:

  • Your host, the Santa of Real Estate Wisdom, ho-ho-host Robert Helms
  • Santa’s Helper, co-ho-ho-host (or just “co-ho” for short), Russell Gray
  • Our own Santa look-alike, the Godfather of Real Estate, Bob Helms

Taking a page from Santa’s playbook, The Real Estate Guys are making a list and checking it twice.  But we’re not looking for who’s naughty or nice…well, actually naughty would be okay 😉  …our list has a bunch of things real estate investors should be thinking about this time of year.

When rushing to open your holiday gifts, wouldn’t it be nice to open up a great big tax deduction, reduced mortgage rate or increased cash flow?  Of course it would!  But sadly, no one is going to slide down your chimney and stuff your stocking with enhanced profits.  So, if you want to pad your bottom line, and keep your assets safe and warm, you’re going to have to wrap your own gifts.

So grab a pen and paper (or that brand new iPad you just opened) and get ready to take some notes.  When you’re done listening to this episode, you’ll have very own end of year checklist and a great start of a new holiday tradition!

Happy Holidays!

Listen now!
Don’t miss a show – subscribe to the free podcast!
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The Real Estate Guys™ Radio Show podcast provides education, information and training to help investors make money with their real estate investments.