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Thread: real estate syndication

  1. #1
    Senior Member
    Join Date
    Jan 2021
    Posts
    163

    Default real estate syndication

    I have been considering adding ~20% real estate to my asset allocation. Right now I am essentially 100% index funds (have a small amount in vanguard REIT). The reason for the shift is for diversification (I say shift but I would not sell assets to make the change just alter where I place future funds). However, I have no interest in direct ownership (I have a busy practice and don't want to be managing a property).
    I was hoping to get the community's thoughts on syndication funds both in general and if anyone has specific recommendations (or avoids).
    I like the idea of a fund because it is not a single property which (hopefully) reduces the risks and I don't have to be evaluating multiple deals. I have also been thinking about the drawbacks:

    - Risk of fraud. I feel a bit nervous about sending off a big chunk of money to a private company. Obviously I would do my best due diligence but how do I really know the money is going where they claim it is. I put this at the top because it is the risk of losing all the money invested.

    - High minimums at many sites. My portfolio has gotten large enough that 20% allocation can meet the minimums at many sites but it does mean I would be putting all my money in their basket (at least to start).

    - Fees. These products have higher direct fees compared to an index fund.

    - Less liquidity. I am early career and don't anticipate needing liquidity but still a drawback.

  2. #2

    Default

    Hi, thanks for sharing this topic, it's interesting to learn more!

  3. #3

    Default

    As for me, there're risks in investing in real estate, but they aren't big. And it's very profitable. But I'd recommend you consider real estate syndication. Of course, there are more risks here than just investing money in investing, but the profit will be much greater and there will be less trouble. My brother is a real estate syndicator who told me about one passive investment in real estate that will be very useful for a beginner. So I recommend that you don't be afraid and try to invest part of the money in such an investment.

  4. #4

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    To avoid risks, you need to cooperate with trusted private companies. It is also important to conclude a contract with them in which the responsibilities of each party will be spelled out. To do this, you will need the help of a trusted lawyer. You can also find out about the company's reputation on the Internet. When I decided to order the redesign of the house, I turned to https://onstage-online.com/our-services because many people spoke positively about this company. I also used their services and did not regret it.
    Last edited by aidaallstott; 06-17-2022 at 06:14 PM.

  5. #5
    Junior Member
    Join Date
    Jan 2022
    Posts
    19

    Default

    The real estate market now looks quite attractive for investment. I myself am interested in Andorra homes for sale https://www.lesbullideres.com/, relatively recently found such an offer. It is a luxury property that you can buy now profitably. Take a look at the offer and share what you yourself think about it.

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