OPERATIONS: SYNDICATIONS
Designing Winning Investments for Top-Producing Real Estate Agents TO BE SUCCESSFUL INVESTING IN REAL ESTATE SYNDICATIONS REQUIRES NO SMALL AMOUNT OF SKILL AND SAVVINESS.
NEIL TIMMINS
E very top-producing real estate to answer one critical question: Am I going to spend the next 10-15 years of my life running to listing appointments, or am I going to finally start investing in real estate myself? If you haven’t hit that point in your career yet, take it from someone agent or broker gets to the point in their career where they are forced who has brokered more than 2,000 homes—you’ll get there. You know better than most people the kind of wealth that real estate can create. But for some reason, most of the real estate agent crowd falls a few steps short of ever investing themselves. If you’ve hit the point in your career where you know you don’t want to be herding sellers and buyers until you’re
70, but you have no desire to deal with delinquent tenants, broken toilets, or ornery city inspectors, what can you do? Let’s unpack how you can use real estate syndications to design your agent optional life—while you continue being a top producer. You can lay the foundation for a future of real estate ownership without the headaches of property management. WHAT ARE SYNDICATIONS? First, how can you own a part of a commercial property and earn income without being actively involved in tenant management or ownership duties? Syndications are a well-proven legal structure that give real estate agents the chance to be real estate investors in large commercial properties as “passive” owners.
Without getting into the weeds, a syndication is a group of investors that pool their money to jointly purchase large commercial properties like warehouses or apartments. There are two main parties involved: 1. Limited partners (who are passive) 2. General partner (who is active) Investments from the limited partners usually make up most of the equity (down payment) needed to purchase the commercial property. From finding the deal to lending, closing, tenant man- agement, and active management, the general partner takes care of everything. The limited partners do nothing active. They receive updates, earn distributions, and file their tax returns. This isn’t a perfect analogy, but being part of a syndication is like owning
64 | think realty magazine :: may - june 2024
Made with FlippingBook Online newsletter