Do Syndications Really Provide "Simple Passive Cashflow"?
Don't fall for the argument that syndications offer Simple Passive Cashflow. It is an illusion. They can be great but don't buy the hype.
Archive
A collection of 56 issues
A Few Bullish Signs for Multifamily Investing at the Start of 2024
After a tough period in multifamily syndication investing, we see a few bright green shoots as 2024 gets underway. Some very smart investors are gearing up for a buying spree, so maybe we should be, too? * David Rubenstein, billionaire founder of Carlyle Group and author of a great book on
Portfolio Assessment at End of 2023
The year 2023 has meant tough times for pretty much everyone investing in real estate. That's been true for multifamily real estate syndication investors along with just about everyone else. Maybe there's been more pain in office, for instance, but multifamily has not been immune. As
Another deal goes full cycle (Fall 2023)
We're in the midst of this downturn for multifamily syndications. Concerns about real estate are swirling in every direction. And then: we got some good news in our inbox this week. A deal we invested in not quite three years ago is selling for a profit. Before we
What questions should I ask a prospective syndicator?
The main purpose of this site is to help people who want to make investments in real estate syndications. In a series of posts, we've outlined what we look for in a syndicator. The five traits we look for are: trustworthy, experienced, conservative, communicative, and values-aligned. In each
How to lose money in real estate, part 2
Today's Wall Street Journal has a scary piece about Multifamily Real Estate: "A Real Estate Haven Turns Perilous With Roughly $1 Trillion Coming Due." If you missed it, the gist is summed up for small investors like this: A new crop of private real-estate firms, funded
How to lose money in real estate, part 1
If you are to believe the influencers and gurus on Tik Tok, then you know that real estate investing is completely passive, super-quick, and a path to extreme riches in the very near term. All you need is the guts to quit your job, fork over tens of thousands of
The number five trait in a syndicator: values-aligned
A final key trait for us: is the syndicator values-aligned? This is a fairly long-term relationship, after all...
The number four trait in a syndicator: communicative
In choosing a syndicator, select for a firm that says what they are going to do and then does just that--or more and better than they promise. That includes communicating with you, the limited partner in the deal.
The number three trait in a syndicator: conservative
The third key trait in any good syndicator: they underwrite deals conservatively. They don't just say they do; they actually do it.
The number two trait in a syndicator: experienced
The second trait we insist upon in a syndication partner is experience.
The number one trait in a syndicator: trustworthiness
There is one most essential element in a syndicator: trust. You can't do without it given the nature and size of syndication investments and the structure of the LP/GP relationship.
How do you choose a syndicator?
In a world of too little trustworthy information and too much hype, how do you choose a syndicator to entrust with your investment?
Large syndication foreclosures: what can we learn?
First of all, welcome to the new members who have signed up here at Syndirater! We are so excited to have a small-but-growing community of limited partners who are interested in bringing more transparency to the multifamily syndication space. We are so glad you are here. This week we are
Book Review: My Money Journey
Jonathan Clements' book offers 30 brief, compelling money stories from a range of different perspectives
Analyzing an offer to invest in Fundrise itself
Fundrise continues to enable its investors to invest in the company itself with a new offering for 2023
Not everything goes exactly according to plan...
Some good news, some bad news, a confusing capital call situation in early Q2 2023
What's the best multifamily syndication strategy today?
Is now a good time to put new money to work in real estate syndications--or wait on the sidelines?
Tax Time 2023 for Syndication Investors
Report on 2023 tax filings from private real estate syndicators.
Types of Returns from Syndications
We were pleased to receive a reader question about the types of options you have as an investor in a syndication. This investor is looking at the types of returns they can expect and when. They wonder what type of investment to choose within the world of syndications. As always,
How is our portfolio looking going into the year 2023?
Our portfolio of syndication investments currently includes assets in which we invested over the past four years. During that period, we have steadily invested in what we perceive to be high-quality assets with operators that we believe have a good track record, good values, communicate well, and generally are aligned
Is 2023 a buying opportunity or a time to stay on the sidelines for multifamily syndication investors?
Are we in a recession or headed into one? Will the Fed really keep raising rates all year? Will rents go down in 2023 instead of up? Will distressed sellers have to give up great properties at low prices? The list of unknowns for syndication investors is long and growing
How is Sustained Inflation Affecting Multifamily Real Estate Syndications?
We have been tracking the effects of sustained high inflation on our portfolio of multifamily real estate syndication holdings. We thought a quick update, in Fall 2022, might be of interest to some readers. We took a close look at the Q3 reports from about 10 of our holdings to
Fees: What You Are Paying Syndicators
As a limited partner, you get a lot of advantages: no hassles from the three Ts (tenants, toilets, termites), no handling of non-paying tenants (managing evictions), and just the upside of the cash flow and gains on disposition or refinancing. So what do the syndicators get? Answer: All that and
Does it make sense to have a separate bank account for one's syndication investments?
Another good reader question from our mail bag: how about bank accounts? Put another way, does it make sense to keep one's syndication investments separate from one's other finances? This is one with that old annoying answer of "it depends." One answer: for our
Patience and the Syndication Portfolio
You can't expect your syndication investments to work out exactly as the people promoting the deal tell you they will. You shouldn't expect it and may well be setting yourself up for disappointment if you do. In our experience, it makes sense to assume that the
Keeping it real: a capital call hits the inbox
If you have been reading this blog, you'll know that we have actively invested in dozens of real estate syndications. Our investments are mostly in multifamily apartment complexes but we have exposure to a few other asset classes as well, including self-storage, hotels, office, and parking. Our portfolio
Launching our first eCourse
At Syndirater, we've had a number of people ask "how can I get started in syndication investing?" We've enjoyed having first conversations with prospective limited partners and offering our ideas about how to get started. And that got us thinking... what kinds of offerings
What kind of entity should we use to invest in syndications?
We've got a pile of reader comments that we've been meaning to get to with blog posts. We got one about whether someone should consider "opening an LLC for this kind of investment." (Time for the usual boring reminder: we are not your lawyers.
All these terms: syndicator, sponsor, operator, promoter...
With whom are you doing business? This might seem like a simple question. But it can actually be confusing, especially at the beginning. There are lots of names for what can be more or less the same role. There are also some wrinkles that can describe the variations in the
What are the reasons NOT to invest in syndications?
If real estate syndications are so great, why isn't everyone piling into them? Let's be honest: it's a pretty small niche of the investing universe. So there must be good reasons why other people are not jumping in to syndications with both feet. Here
Is there ever a major loss of capital in a syndication investment?
In an earlier post, we covered the topic of what could go wrong with a syndication investment. We got a follow up question from a thoughtful reader: "yeah, OK, but can we lose all or most of our capital?" It's a very astute--and totally fair--question. The
Book Review: "The Cash Flow Investor"
A fresh look at syndication investing from Kevin Bupp with an emphasis on mobile home park syndications.
Book Review: "Why Doctors Don't Get Rich"
Dr. Tom Burns's Why Doctors Don't Get Rich--a review.
If you want a new car, buy real estate...
How to buy a car using real estate syndications.
What could go wrong in a syndication investment?
There are some really appealing things about investing in a syndication. As eager syndicators (or sponsors or operators or deal promoters etc.) will tell you over and over, you get to invest passively in an appealing asset class, you don't have to do much work, you get a
Book Review: "The Hands-Off Investor"
If you were to ask, "What's the one recent book I should read about investing in real estate syndications to get the basics before I start?," the list of possibilities would definitely include Brian Burke's The Hands-Off Investor: An Insider's Guide to
Book Review: "Backstage Guide to Real Estate"
I think it is safe to say that the most fun book we have read about real estate syndications is Matthew Picheny's "Backstage Guide to Real Estate: Produce Passive Income, Write Your Own Story, and Direct Your Dollars Toward Positive Change."
Do Syndications Typically Pay What They Promise?
When you make any kind of investment, you are no doubt expecting a return of your capital at some point as well as a return on your capital. Otherwise you would not take the time to invest it--you would just leave it in your checking or savings account.
Stocks and Bonds Falling in Lockstep... What about Syndications?
The Wall Street Journal is running a story today entitled: "Stocks and Bonds are Falling in Lockstep at Pace Unseen in Decades." The gist of the story is simple: investors have fewer places to turn for true diversification in the public markets than in the past.
Book Review: "Investing in Real Estate Private Equity"
Sean Cook may have written the most comprehensive book out there on investing in private real estate deals, such as syndications. The full title is: "Investing in Real Estate Partnerships, Funds, Joint Ventures, and Crowdfunding."
How do you get paid in a syndication?
You invested in a real estate syndication with the expectation that you would get paid. You wanted, for sure, to get your capital back--a return of capital. But you also expect that you would get paid for taking the risk of putting your money in a deal of this sort--a return on capital.
Some Podcasts We Listen To
The world of podcasts related to real estate syndications is just incredibly vast--and growing fast. You could literally spend all your working time listening to nothing but podcasts about real estate syndication.
Book Review: "Impact: Reshaping Capitalism to Drive Real Change"
Sir Ronald Cohen is one of the giants–if not the most giant of giants–who have championed the field of impact investing.
Book Review: "Investing for Good"
Do you imagine making investments that allow you someday to receive income while you sleep, do good for others, and do anything you feel like with your time?
Tax Time!
OK, so you're a syndication investor. What does that mean for your tax reporting? Mostly it has been good news for us as LPs. The tax benefits of investing in syndications have been tremendous. From regular depreciation to bonus depreciation (an advanced topic that we'll get
How to get started learning about real estate syndications
Let's imagine you have a loved one who is very smart, a savvy investor, and curious--and who expresses an interest when you first mention you've been investing in private real estate deals. Of course you could just bore her with all of your many insights about
What are Cap Rates and why do they matter to syndication investors?
You might wonder what kinds of metrics should guide your decision-making process as you consider one investment opportunity as compared to another. At Syndirater.com, we emphasize the track record of the syndicator / sponsor / operator (people tend to use these terms more or less interchangeably) you are working with. Those
Private Real Estate Syndications vs. Public REITS
You might be wondering: when I am considering investing in a private real estate syndication, what is the closest alternative? And how best can I compare my options? This question is right on the mark. The most obvious competition to a private syndication is to sink your money into a
Inflation: Is it a Good Thing or a Bad Thing for Syndication Investors?
You've seen the headlines: inflation has hit 7.5%. Debates rage about whether it is a long-term trend or just a temporary blip. You hear also that the Federal Reserve is going to raise rates--maybe once, maybe many times this year. What does this mean for syndication investors
What is a 1031 exchange and why should syndication investors care?
Investors often talk about a "1031 exchange." What does it refer to? And why should it matter to you as a syndication investor? The term "1031 exchange" refers to a section of the United States revenue code. It's often good to go right to
What to expect at the end of a syndication deal
You've done everything right: you decided to invest in a syndication, you planned out your area of investing (say, multi-family apartments in the Sunbelt of the United States), you researched and found a great syndicator, you invested $50,000 with them a few years ago, you collected monthly
What to expect once you are invested in a syndication deal
The most annoying answer is probably "it depends" but that's the truth in this case. It does depend on the kind of syndication deal you've invested in and the expectations that you've been given by the syndicator. But let's look
How can I get started in syndication investing?
This site is geared toward helping people all along the spectrum of syndication investing--from people just realizing that it exists (yes, a whole new world opens up in front of you...) to those who have been investing in syndications for decades (or generations; yes, the wealthy have been syndicating deals
Why does Syndirater exist?
We started this site for you, the investor, who wants more transparency in the marketplace for private syndication investments. When you go to choose a mutual fund, ETF, stock, bond, or just about any kind of investment, you can typically get a bunch of data about it before you make
What to expect when you make your first syndication investment
OK, you've done your homework. You have narrowed down the options for your next investment from the infinite down to multi-family, self storage, and mobile home syndications. You've landed on multi-family apartment syndications. You defined for yourself a set of investment criteria. You found a reputable