Real estate is one of the most effective wealth-building vehicles and is an important component of a well-diversified portfolio. The real estate industry has given birth to 90% of the world’s millionaires, and it is arguably still one of the best investments you can make today.
There are many ways to delve into real estate and make a profit, so it really depends on your long-term goals. However, if building enduring wealth is what you seek, Syndication is the best way to kickstart your journey into wealth creation.
Although it can be an intimidating word, Syndication just means that a group of people come together to invest in an asset larger than one could invest in by themselves. Thanks to this process, investing in real estate becomes much easier and several people can benefit from the process.
To get started, we divided the process of passively investing in real estate into 5 easy steps that will put you on the right track to build your wealth
1. Make a decision. Write down your specific goal
Decide to passively invest in real estate. Be specific with the amount you want to invest and the date you plan to invest. Write it down.
For example:
“I will invest $100.000 into a passive real estate transaction by August 30th, 2021”
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2. Choose your asset class
As the name implies, there is a multitude of asset classes in which you can invest on. At Beilke Investments we believe multi-family properties and senior living facilities make the ideal investments, but there are also other options to consider such as self-storage, mobile home parks, office, retail, hospitality, etc.
Regardless of what you choose, selecting one asset class to focus on is key to get a solid start.
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3. Select your target markets
Understanding a geographic market area is a vital part of real estate investment strategy. Possessing trend awareness about demographics, job growth and wealth plays an important role in identifying the potential cost of housing increases.
Focus on one or several markets. To know what to do, there are some important factors you should consider:
- Population growth
- Job growth
- Income growth
- Landlord friendly
Acquiring multifamily properties in areas with increasing rent and demand can provide a nice boost to other value-enhancing methods, such as renovations. Here we’ve listed 10 cities with the highest rent growth according to the US Census covering the past 5 years.
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4. Meet syndicators
Meet syndicators from the asset class and markets you’ve chosen. You can meet syndicators in several ways, for example:
- Social media
- Real estate conferences
- Mentorships groups
- Free local meetups groups
Get to know syndicators by having coffee or lunch with them. Build a rapport and find people you can trust. This will boost your efforts greatly.
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5. Take action!
Use your spare time to educate yourself more on the subject, by reading books, listening to podcasts, attending meetups, etc.
Start reviewing offers from syndicators. Ask questions and keep working to find a deal that meets your criteria; once you do, enter action with boldness.
Ready to start building a legacy?
Remember that every investment has a degree of risk and that you should always be well informed and keeping up with trends
However, risk can be mitigated by experience, which is good news since it means you’ll get better the more you keep at it! but it is also the main reason why we prefer syndication as our go-to way to generate consistent cash flow.
Through syndication, you can leverage the experience of your would-be partners to better navigate the realm of passive investing and make smart business decisions.
Because of that, and also because we believe creating wealth is also about giving value to others, we’ve prepared a short guide to get started in real estate passive investing.
Download it now to learn more about syndication, the multifamily asset class, passive investing, and more!