5 Things Every New Investor Should Do Before Investing In Their First Real Estate Syndication

Investing in your first real estate syndication can feel overwhelming and scary. You may logically know there are possibly hundreds of other investors taking the same steps, yet feel as if you’re walking this path alone.

Learning the lingo, reviewing deals, and committing a huge chunk of savings can bring up all kinds of fears, but as you continue to research, learn, and have conversations about investing passively in real estate syndications, you’ll naturally gain peace of mind.

​A few recommendations for working through these initial insecurities include doing research, asking questions (all of them), connecting with other investors, reviewing old deals, and taking all the time you need to choose your first deal. 

#1 - Research

The best way to fight back the fear gremlins is to get educated. Investing $50,000 or more is no joke, and you should build your investing confidence with books, podcasts, articles, and online communities.

Once you send off that capital, it’s done, and there’s nowhere to log in and “see it” like with your brokerage accounts. So, gaining insight and perspective from podcasts like BiggerPockets Podcast, Best Real Estate Investing Advice Ever, The Real Wealth Show, and Lifetime Cash Flow Through Real Estate will be of utmost help.

​Rich Dad, Poor Dad is one of the best books ever on investing and the power of real estate, and as they say, leaders are readers! The BiggerPockets Podcast also has a massive community of real estate investors, so take a dive into that rabbit hole if you dare. Plus, the Real Wealth Network is a great resource about growing markets around the country. 

#2 - Ask ALL the Questions

Inevitably, while doing your research, you’ll come across a question you can’t find an answer to or something you don’t quite understand. This is where some of those online forums may prove useful.

When you’re starting out, no question is dumb and people in communities like BiggerPockets love to be helpful. Plus, you can read through and see what others are asking, which may answer questions you didn’t even know to ask.

Asking questions shows you’re engaged and serious about doing your own due diligence. That’s the type of investor we want to partner with - confident investors who think critically throughout the life of the project.  See previous article on opics to discuss HERE!

#3 - Connect

A real estate syndication is, by definition, a group investment in real estate. There are tens, possibly hundreds, of other investors just like you!

Some are in your same shoes (newbies) and others remember those days fondly and are itching to share advice or steps as to what they wish they knew back then.

Connect with other investors, new and experienced, through online forums, local networking events, and by asking sponsors if they’ll put you in touch with some of their current investors.

​Creating a community of support from like-minded investors around yourself will help you walk through any fears AND assist you in finding future investment opportunities.

#4 - Review Previous Deals

Investment summaries contain loads of real estate and investment lingo and can be completely overwhelming to a new investor. However, the more investment summaries you see, the more easily you’ll be able to decode that lingo.

​For this reason, we suggest you look past the first few shiny, seemingly perfect deals you see and approach each one with an open mind. Compare details across deals, learn how each sponsor communicates, and make an informed decision. 

#5 - Take Your Time

New investment opportunities fill up in just a few days, which can give the illusion you might miss out on the “best” deal and that opportunities are passing you by.

However, as a new investor, it’s utterly important to avoid that panic and take all the time you need to feel comfortable, educated, and confident. For this reason, don’t sink your cash in the first shiny new deal you come across.

​Research, networking, and education all take time. Allow yourself that space, so when you do invest in your first real estate syndication, you’re confident and excited every step of the way.

​Recap 

Investing in a real estate syndication is no easy or small feat. And it’s completely normal to be fearful, worried, confused, skeptical, and even anxious about your first deal.

It’s important to remember that even the most successful investors were once in your shoes.

In preparation for selecting your first real estate syndication investment, walk, don’t run, through the steps above. Savor each step, and the confusion and overwhelm you experience along the way because you’re up-leveling your life.

​One day, you’ll look back and be so glad you did.