- Become familiar with real estate and the process of syndication. The more you know, the better questions you will ask.
- Use your network. Ask your friends if they have had success investing in real estate. If so, find out who they work with or invest with. You can also join Facebook or LinkedIn groups. There is a group out there for everything, and you will learn where like-minded people congregate.
- Go to seminars. There you will meet the people, obtain the knowledge and create the leverage you will need to move forward. This uses less time leverage, but will drastically increase your knowledge, which increases your financial leverage.
- Find local meet-up groups in your area that focus on your interests. There are real estate meet-ups in almost every midsize city and above. Here you will meet potential sponsors and hear about local real estate.
- Act. Once you find an opportunity you like, or a sponsor who has an attractive project, make a small investment. This gives you access to the deal so that you can understand the process in real time. A small investment lowers the financial effect of a loss if things do not go right. You can always invest more as you become more educated.
By Tom Burns, MD
Official Member of Forbes Real Estate Council
