In preparation to become a real estate investor, the most essential step to take is establishing your investment goals.
What do you want investing to do for your life? Are you in pursuit of passive income to match your salary? Are you investing to build a retirement account?
These questions, in addition to how much money and time you plan to invest in real estate matters exponentially in terms of deciding which types of real estate deals are best for you.
As an investor in a real estate syndication, for example, you give up some overall control of the investment and pool your money together with a group of investors in a large piece of otherwise un-affordable property, like a 300-unit apartment complex. While you enjoy relief from the typical responsibilities and time-commitment land-lording requires, you rely on the deal structure of the real estate syndication to dictate how the returns are distributed.
So, when exploring syndication deals in real estate, what do you look for? Where do you start? How do you know which deal structure is best?
This article will walk you through the key component of syndications - the deal structure - which is how the returns will be split between you (and the other passive investors) and the general partners (the syndication team).
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