A real estate syndication is a group investment, yet it can feel like a lonely process at times. For security and privacy reasons, you may never meet or even know the names of the other investors, even though you’re pooling your money into the same asset alongside each other.
It’s likely you’re in touch with the syndication sponsor, or with a group like Timbermoss Capital, but you won’t get the team atmosphere you’ve come to know with other group activities.
So, you may find yourself wondering what the other investors are like, where they come from, and how they chose the same deal as you.
Today, let’s satisfy your curiosity by addressing a few questions you’ve probably always wanted to ask about the other investors:
Imagine spotting an old bookshelf sitting out on the curb. You pull over to check it out, and since it’s in good shape, you proceed to lug it home and give it a fresh coat of paint.
A few years later, you sell the shelf to someone else who claims to have the perfect spot for it.
You took something that had been overlooked, committed some sweat equity, and breathed new life into it. This is the essence of value-add, and it’s a commonly used strategy in real estate investing.
The Basics of Value-Add Real Estate