Bill is highly regarded in his circles of real estate. He's given a very concise commentary on some of the ways YOU can invest in real estate. Syndication with like minded investors or as one can do here in Palm Beach County, purchase tax certificates. Any way you look at it, if you want to invest small in real estate, you can.
Remember to contact me, Linda@tropicaldreamteam.com with all your real estate questions!
Happy House Hunting!
Dispelling the myth about real estate investing by Bill Roberts
How many times have you said "I just don't have enough money to invest in
real estate right now?" Well, its one thing to say that to someone else, but it is
an entirely different thing to say it to yourself.
Good property suitable for investment is expensive. Financing options are
limited. The necessary down payment can be enough to choke a horse. Is that
what is bothering you Bunkie?
Well, let's examine this. Good real estate investment property might be
expensive, but that doesn't mean that the traditional method of saving up
until you have a sufficient down payment, getting your credit score
maximized, searching for and finding the "right" property, negotiating a
"killer" deal, finding a lender that will make the loan, shepherding the "deal"
through escrow, and then managing the property in such a way as to
guarantee that it is a successful investment is the ONLY way to go about it.
As they say, there are many ways to skin a cat. Investing in real estate can
take many forms. It isn't all about traditional purchases. Some of the options
are: lease options; assignable options to buy; assignable purchase contracts;
tax deeds; tax certificates, Real Estate Investment Trusts (REITs); real estate
focused ETFs; and syndications.
All of these strategies allow you to invest in real estate without all the
strictures of the traditional purchase. Any one of them could be your answer,
but I would like to spotlight one of my favorites: syndications.
A syndication is basically a partnership with other people who share some of
your concerns. Maybe they can't qualify for the necessary loan, maybe they
don't want to do all the research necessary to find that perfect deal, maybe
they just don't have enough money to go it alone. Whatever their motivation
is, teaming up with them can give you what you want: a seat at the table.
A syndication is put together by someone called the syndicator. The
syndicator gets paid for what he does. That payment can take the form of
commissions on the purchase and sale of the property, an equity interest in
the syndication, management fees, and other remuneration as the
partnership deems necessary and appropriate. All these fees doesn't mean
its not a good deal for you. A deal is only good if it is good for all involved.
A Good Deal
The syndicator has the responsibility to make the deal attractive to his
A syndication will generally take the form of a limited liability company
(LLC). The LLC will find and purchase the property. It will manage or arrange
management of the investment. It takes all the risk. Your risk is limited to
your investment. You can come in with a small investment. Your losses are
limited, but your gains are not.
How do you find a suitable syndication to invest in? Well, its not easy. Most
syndications cannot advertise to the generally public. Generally speaking,
they can only offer the opportunity to invest by private memorandum shared
with people that they already know and with whom they have a business
Just like in Guys and Dolls, if you want in on the oldest established crap game
in New York, you need to know Nathan. If you want to participate in a real
estate syndication, you need to put yourself where the syndicator can find
you. The best way to go about this is to network. Join groups, go to meetings,
talk to your advisors, make it known that you want in the game.
Stay tuned. I'll discuss how you should hold title in your syndication in
another article. Its all about profits and taxes and how to handle this to your
best advantage. This is part of my series on Baby Boomer Retirement
PALM BEACH INLET