Investing in Commercial Real Estate Through a Syndication

The definition of a commercial syndicate is “two or more people or concerns pooling their resources to acquire commercial investment property”. These resources do not necessarily have to be money. They may include money, time, labor or any combination.

How do you find a commercial syndicate? By enlisting the aid of a successful commercial real estate professional. To assure competency, look for a professional who is a Certified Commercial Investment Member (CCIM) of the Commercial Investment Real Estate Institute. The CCIM designation is the PHD of commercial real estate. A CCIM designation means the agent has passed a series of graduate level courses and achieved success in their field by participating in a minimum of $30 million in commercial sales. To give you an idea of the importance of using a CCIM – Fewer than 6% of all real estate professionals achieve the CCIM designation.

Choosing the right person as a syndicator can mean the difference between success or failure of the House Flipping Investment Groups project. This checklist shows some of the questions you should ask when considering a syndication.

Is the agent active in syndications

Professional designations earned

Years in business

Types of completed projects

Attorney on staff or on the team

Number of partners in the proposed syndicate

Proposed contributions How To Include Furniture In Sale Of Home to the syndicate

Contribution expected from you

Will the syndicator be managing the property

Ongoing costs, if any

Expected return on investment (ROI)

Proposed exit strategy

You may not need to ask any of these questions, since a professional syndicator will present you with information about the investment property in the form of an offering memorandum or a sales circular. Complete information and an outlining of the details for participation in the syndicate are provided in this document.

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