Does investing in real estate syndications feel like you are embarking on a blindfolded hike? It can be unfamiliar, intimidating, totally unfamiliar.

I personally experienced fears around investing in a property I’d never seen, concern about how I’d get my money back, and doubt around the inability to log into an account and see my money. Wouldn’t buying a rental property like a duplex just be easier?

Turns out, it absolutely wouldn’t be easier to buy a duplex.

These fears were addressed head-on through research. Every article I read and every conversation I had built my certainty until I began to feel confident toward taking the plunge.

Small action steps lead to big changes in confidence.

If you’re considering your first syndication and feeling hesitant, I recommend doing your research, connecting with other investors, reading through previous deals, and taking your time. 

Get Up to Speed and Do Your Research

Start with learning about real estate and syndications through books, podcasts, and other investors. You’ll grow your confidence quickly through self-education and research.

It can also be easy to get stalled out in this step Spinning in the endless cycle of learning without ever taking action. Give yourself a few weeks or a month to go through specific content and take an action step at the end.

We recommend:

Books:

• Rich Dad, Poor Dad by Robert Kiyosaki
• It’s a Whole New Business by Gene Trowbridge 
• Principles of Real Estate Syndication by Samuel Freshman  

Podcasts:

• Best Real Estate Investing Advice Ever with Joe Fairless
• The Real Wealth Show with Kathy Fettke
• The Investor Mindset with Steven Pesavento

Ask Questions

Good questions are often better than good answers. They can lead us down a path of inquiry and reveal what our biggest concerns may be. In the world of real estate investing, no question is too simple or small. Everyone started right where you are now and giving back through providing value permeates this culture.

Where to ask?

Relevant Facebook groups and forums like BiggerPockets can help you learn what questions you should be asking.

It’s likely that other people have asked about your same concerns and, just by reading through the forum’s questions and answers, you’ll gain clarity.

Big tip: Find someone who is happy to answer multiple questions, such as in a private message. It can be helpful to hear more about their strategy and goals so that their opinions and knowledge can be contextualized. 

Remember there are no dumb questions and that you have the right to be diligent about gathering answers to your concerns. 

Connect with Other Investors

Every successful investor needs a supportive community, just like any new sport or hobby, or skill you hope to master. Since syndication is a group investment, networking comes natural to other investors.

Any new investors will share similar anxieties, questions, confusion, and excitement. Experienced investors can provide invaluable firsthand accounts of their experience with various projects and sponsors. You’ll find a wealth of information from fellow passive real estate investors like you.

Find other investors through online forums like BiggerPockets, local networking events, or by asking sponsors if they’ll connect you to their current investors.

Review Previous Deals

Reviewing previous deals will help you gain confidence by allowing you time to fully understand the financial projections, summary data, and investment lingo. Otherwise, these elements can be overwhelming.

As you review more investment summaries, you’ll see that there is a general flow to the deal packages, how individual sponsors communicate, and exactly which investments interest you. 

Hot tip: Take your questions about an investment summary to your networking event and ask questions with other investors. Of course, you should be able to ask a sponsor directly, but it can be comforting to hear the thoughts of a fellow investor too.

Take Your Time

New investment opportunities fill up quickly. Taking your time now will prevent a panic response. Evaluating a deal with confidence (and yes, swiftly) will mean that you won’t second guess yourself later. 

Remember, there will always be another deal, another opportunity. 

Allow yourself time to complete the steps laid out here, so that when you make your investment choice, especially in your first syndication deal, you’re confident about every step and every decision.

Considering Everything

Of course, no one knows everything. However, if you take nothing else from this guide, remember it’s completely normal to feel skeptical, anxious, and even scared when making your first syndication commitment.

The ability to take action is what separates the successful from those who give up. When we face something that seems difficult and take small action steps to move through it, we often come out with transformation.

Your transformation could be a faster path to financial independence with less effort.

This is passive real estate investing through syndications.

Your first real estate syndication deal is a huge milestone in your investing journey, and, even though your head might be spinning now, this is a time to savor. Moving through something difficult and getting to the light on the other side makes for one of the sweetest moments in any area of your life.