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

It can be intimidating to invest in your first real estate syndication. You may know there are hundreds of other investors following the same steps as you, yet you still feel like you’re on your own.

Learning the jargon, examining deals, and committing a significant portion of your assets can all raise concerns, but as you continue to learn, research, and have conversations about investing passively in real estate syndications, you’ll gradually gain confidence.

Doing research, asking questions (all of them), networking with other investors, evaluating prior deals, and taking as much time as you need to choose your first investment are just a few suggestions for overcoming these early fears.

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.

2. Ask ALL the Questions

While doing your research, you’ll inevitably run into a question you can’t find an answer to or something you don’t fully comprehend. This is where those online forums may come in handy here.

When you’re first starting out, no question is too silly, and people in online communities like BiggerPockets are extremely helpful. You can also browse through the questions others have asked, which may provide answers to questions you didn’t even know to ask.

Asking inquiries demonstrates that you’re interested and committed to conducting your own research. That’s the kind of investor we want to work with: self-assured investors who think critically throughout the project’s life cycle.

3. Connect

By definition, a real estate syndication is a group investment in real estate. There are dozens, if not hundreds, of other investors who are in the same boat as you!

Some are in your shoes (newbies), while others fondly recall those days and are eager to provide advice or steps on what they wish they had known back then.

Connect with new and experienced investors through internet forums, local networking events, and by asking sponsors to connect you with some of their current investors.

Creating a support network of like-minded investors will help you overcome your worries while also assisting you in locating future investment possibilities.

4. Review Previous Deals

Investment summaries can be overwhelming to a new investor since they contain a lot of real estate and investment jargon. The more investment summaries you view, though, the easier it will be to decipher through the jargon.

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 Time

New investment opportunities fill up quickly, giving the impression that you’ll lose out on the “greatest” deal and that opportunities are slipping away.

As a new investor, however, it’s critical to avoid panic and take as much time as you need to feel comfortable, informed, and confident. As a result, don’t put your money into the first flashy new deal you see.

Time is required for research, networking, and education. Allow yourself that time so that when the time comes to invest in your first real estate syndication, you’ll be confident and excited during every step of the process.

Recap

Investing in a real estate syndication is no easy or small feat. It’s completely acceptable to feel nervous, concerned, perplexed, skeptical, and even anxious about your first deal.

It’s important to keep in mind that even the most successful investors have been in your shoes before.

Walk, don’t sprint, through the steps above in preparation for your first investment into a real estate syndication. Savor each step, including the confusion and overwhelm you experience along the way because you are leveling up your life.

You’ll look back one day and be glad you did it.