- 1 – Select an asset class.
- 2 – Obtain training in that area.
- 3 – Brand your company.
- 4 – Pick a business model.
- 5 – Get training on syndication.
- 6 – Build your database.
- 7 – Analyze deals and make offers.
- 8 – Get a property under contract.
What are the three phases of real estate syndication?
Syndicating a real estate deal is a big task, but it’s made much more approachable by distilling it down to the three fundamental phases: origination, operation, and liquidation.
How much does it cost to start a real estate syndication?
Most real estate syndicators charge investors 1-2.5% of the acquisition cost. So, if a property costs $500,000 but the investor only funded $100,000 in the capital, they would have to pay $2,000 in a 2% acquisition fee.
How much do real estate syndicators make?
Syndicators typically earn between 25% and 50% of distributable cash generated from operations, refinance or sale of a property, which may be paid as a direct split between the members and the syndicator (i.e., 65/35) or as a preferred return.