What is a Syndication?

So, if you caught my last post about Large Multifamily, I went over some of the basics of that particular asset class.

And if you recall, I left you with a little cliff hanger...

Talking about and understanding Large Multifamily is great! BUT, how does someone actually start getting into deals of that size? Does it take years of buying single family and small multifamily properties to finally have the "cajones" to pull the trigger on a large multifamily?

Yes, and no.
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Can someone like me, with only 2 years of investing experience, be part of a large multifamily deal?

The answer is 100% YES.

And it's done through a strategy and process called SYNDICATION.

What the heck is syndication?

Syndication is an effective way for investors to pool their financial and intellectual resources to invest in properties and projects much larger than they could afford or manage on their own. It typically involves a Sponsor and a group of investors.

Why am I so intrigued by syndication?

Because THIS is how someone like me gets into the large multifamily world. This is the perfect example of partnership, where multiple parties come together, each bringing their own value to a project, in order to close the deal, get it running, and hopefully spit out great financial returns.

When it comes to evaluating my next investment, I'm just going to say it...this is probably the front runner over single family, small multifamily, and note investing. I'm trying to THINK BIG and keep an ambitious mindset.

Key Takeaways

• Syndication is an effective way for multiple parties to come together and close on a deal they may not have been able to do so individually.
• Syndication also allows investors to get into large deals even if they don't have a ton of experience.
• THINK BIG and always keep an ambitious mindset. As that cheesy saying goes, "shoot for the moon, because even if you miss, you'll land in the stars."

-Tyler

My Fourth Property