What is a Real Estate Syndication?
A real estate syndication allows you to team up with other investors to purchase commercial real estate property or multi-tenant property. These investments are complex for individuals to obtain, but multiple investors can make a substantial sum. At HomeServices Real Estate Academy, we offer real estate classes in Lexington and Louisville, Kentucky. Discover more about real estate syndication and how you can be a part of it.
Can you Benefit from a Real Estate Syndication?
There are a lot of benefits of real estate syndication, starting with the fact that it opens the door to more opportunities because other people are investing alongside you, and protects you because you’re not the only investor.
As an investor, the benefits include:
- Earning passive income.
- Increasing tax returns.
- Diversifying your portfolio.
When done right, real estate syndication can lead to an excellent return on investment. You do very little since the property is managed and operated by outside sources.
As a real estate agent or broker, closing on a commercial or multi-tenant property can be a huge paycheck because your cut is still the same 3-4% in commission, but the sale of the property is much higher.
What are the Risks of a Real Estate Syndication?
Like any investment, real estate syndication involves risks, primarily market fluctuation.
As an investor, risks include:
- Your money is usually locked into the property, and you might not be able to exit early. In other words, any funds you use are out of reach for the duration of the investment.
- If you have a sponsorship group that mismanages the funds or the property, it could lose money.
- Even with an excellent sponsor, you could still lose money due to unforeseen events.
It’s essential to thoroughly research the sponsor and see what they’ve done in the past so you can have an idea of their success rate. Sometimes, sponsors will flip a property early, which can cost you money.
As a real estate agent or broker, you’ll also face risks. You could face a loss of reputation if things go wrong. You can also face violations of securities laws if things go wrong. Additionally, since pulling the deal together requires several investors, you could lose money or the deal if someone backs out.
HomeServices Real Estate Classes
HomeServices Real Estate Academy offers online and in-person classes that prepare you for a career as a real estate agent or real estate broker. Enroll in pre-licensure courses, brokerage agent courses, and continuing education topics that address a wide variety of topics that prepare you for the exams and your careers, including:
- Real estate law.
- Real estate investment.
- Real estate marketing.
- Property management.
- Land planning and zoning.
- Commercial real estate.
Contact Us for Real Estate Classes in Lexington and Louisville, KY
Take the first step toward a career in real estate when you enroll at HomeServices Real Estate Academy. Meet the requirements to take your licensure exam while learning from professionals with real-world experience.
If you have questions about enrollment, send us a message or call our Lexington office at (859) 317-4847. We proudly serve Lexington and Louisville, KY, and the surrounding areas. Contact us today!
