Investing in commercial properties can help you achieve that stability. These investments are called syndications. In simple terms, a syndication is a collaborative investment in which multiple investors pool money to acquire commercial assets under the management of an experienced operator. These properties can be apartments, warehouses, retail strip centers, medical offices, and others. Here’s the key: These prop- erties generate income that is shared among the investors, plus investors benefit from the property’s appreciation in value. BENEFITS OF SYNDICATIONS Syndications provide three major benefits: PASSIVE INCOME AND FINAN- CIAL FREEDOM. One of the most sig- nificant advantages of investing in syndications is passive income. Un- like sales, which demand your con- stant attention, syndications allow you to earn passively. It’s somewhat like a stock or a bond. You receive quarterly or monthly distributions without being involved in day-to-day management. These distributions can supplement your commission, helping you better predict your in- come and weather slow seasons. Plus, the property is building equity and increasing in value while you re- ceive passive cash flow. NO. 1 NO. 2 TIME FREEDOM AND CONTROL. You sell a home and earn a commission. It’s a one-for-one exchange. You need a tool that allows you to invest once and earn
on repeat. Why? Your most valuable resource in the world is finite: time. It’s not necessary to go out and buy single-family rentals on your own (I tried that). As an investor in a commercial property, you are free to focus on what you do best: being an agent. NO. 3 A WEALTH-BUILDING STRAT- EGY AND FOREVER INCOME. As an agent, you probably don’t have an employer-sponsored retirement plan. Although your commissions provide significant one-time payouts, retirement planning may not be an immediate priority. Investing in com- mercial syndications (with the guid- ance of your trusted financial advisor) can fit into a well-balanced retirement plan. You can’t control inflation, markets, or the govern - ment. But you can give yourself the opportunity to earn income even af- ter you’ve stopped selling. Don’t rely on a stash of cash. Supplement your savings with passive earnings. GETTING STARTED WITH SYNDICATIONS The syndication world is huge. There are loads of operators in every major market. Where to start? Before you take the plunge, begin with these three steps: NO. 1 DO YOUR OWN RESEARCH. Educate yourself about commercial real estate syndications. There are plenty of podcasts, books, and articles to help you grasp the fundamentals. NO. 2 TALK TO SOMEONE QUALIFIED. Talk with your CPA or
trusted financial advisor to understand the implications. Be aware that not every CPA or financial advisor will fully understand syndications. They may dismiss commercial real estate as an “alternative investment.” Keep in mind that the total value of the commercial real estate market in the U.S. is roughly $21 trillion, and the equity market capitalization of the New York Stock Exchange is about $24 trillion. It’s not as “alternative” as Wall Street wants you to believe. FIND A SYNDICATOR YOU TRUST. Look for an operator who understands your background and has a successful track record. You’ll be able to schedule a time to talk with a team member who should ask questions about your financial goals and present an overview of their business. Investing in commercial real NO. 3 estate can transform your life due to the passive income it produces. Commercial real estate investments just might be the key you need to unlock your golden handcuffs. You don’t need to sacrifice your high income to regain control over your schedule. You can have both. •
Neil Timmins is a real estate syndicator, broker, and educator. He generates passive income opportunities through industrial real estate in “Cash Flow
Country,” the Midwest. After spending years invest- ing in houses and $300 million in transactions, he graduated to investing in commercial real estate. Now he educates others on how to do the same. Neil hosts the podcast “Passive Real Estate Invest- ing with Mavericks.” His first book “Unicorn Hunting for Real Estate Investment Companies: The Com- plete Hiring Funnel” was released in 2021.
50 | think realty magazine :: november – december 2023
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