Learn More about Real Estate Syndication
If you are an investor here are answers to frequently asked questions
Are you a commercial real estate professional?
As a local real estate broker you often get the opportunity to list a property that you know is an attractive investment. If you are lucky, there may be interest from multiple buyers, each of whom may be represented by different brokers. There will be multiple walks through, a lot of questions, dickering, and back and forth. One, two or three deals may fall through. You may not close for months and the seller is not likely to get the full asking price.
You’ve probably seen real estate crowdfunding sites. Dozens, if not hundreds of listings competing with each other for the investors that the brokers hope will buy in. We do it better.
We will find investors for you that only see your property, no confusion, no choices. We help you to form a company to purchase the property and prepare an attractive marketing package. We then help you by contacting, capturing and closing these investors who will fund the down payment. You will receive all the commission on the listing and ongoing management fees. You get resale commission and a portion of the profits when the property is eventually resold. We provide everything that you will need.
We will help you by providing the necessary and compliant paperwork for you to offer your clients and prospects the opportunity to participate in the ownership of the property. This will allow you to raise the funds that you need for the down payment and other up-front expenses. We will post the offer on a turnkey investment platform that will describe the property, qualify the investors, provide a place for delivery of all of the documents, escrow their funds and finally close the offering in keeping with Federal and state laws. No other properties will be listed on the page to compete for investors. We will help you to close quickly. We will use our database of accredited investors in the zip codes close to the location and beyond. Many commercial real estate deals involve investors far from the property they buy because it is hard to find deep pockets in your community
A Flowchart of the Syndication Process
Some commonly asked questions and answers.
What do I have to do?
Send us some basic information about the property and let’s find out. Below is the link to our questionnaire to make it easy. On the last page are the questions you can complete and email back to us. Occupied properties with predictable revenue and expenses are best.
Since you and your investors are providing the down payment, you will need to arrange for the remaining mortgage financing. You simply do what you would normally do to market a property: prepare the marketing materials, advise your current clients and prospects of the sale. You can download our questionnaire, complete it and email it back to see if your property qualifies.
So what are you doing for me?
We help you set up a new LLC to purchase the property. You will be the managing member, that’s called a sponsor. We will help you raise the money for the down payment and up-front expenses from investors in your community or beyond. You will not have to share commissions with a buyer’s broker, do walkthroughs, answer endless questions or wait while people make up their mind and gather a big down payment. You will be selling the property for the full price and can expect to close in short order. Our approach is designed to allow investors that wish to purchase a smaller investment an opportunity they would not otherwise have. We will have lots of investors excited at the prospect of owning income producing properties in your community. We will collect their funds, get them to you in time for closing on the property purchase and maintain the required on-going investor management and communications required. We do everything that is not what you do best.
What do I need to get started?
We need to know how many of your existing friends and customers are qualified to invest and how much before the campaign starts. Crowdfunding ventures that begin their campaign with 30% of what is needed to be pledged on the first day have a 90% success rate. We will need a deposit for expenses preparing the offer. This approach, as with any capital formation approach, requires some up-front costs and expenses. We have partnered with effective providers for the platform and marketing services to keep costs down. The upfront money will be returned to you when the offering closes. No matter how you sell this property there will be costs to get started. How much is it worth to not share the commission with the buyer’s broker, earn continuing management fees and know that you will earn more money when the property is sold again? From what we’ve seen you will pay less with us.
Here are answers to frequently asked questions by brokers