456: The Harsh Reality Real Estate Syndicators (and Investors) Face in 2024
1Description
Many real estate syndications are facing absolute failure in 2023. But, even if you aren’t investing in any, this could be a learning experience like no other to help you build your wealth in the future. If you’ve never heard of a real estate syndication before, here’s a quick summary: a real estate syndication is where an “operator” raises money from a group of investors to buy a large commercial property, often an apartment complex, self-storage facility, or housing community. Over the past ten years, these investments have boasted massive profits, but everything is about to change.
Real estate syndications face obstacles like they never have before. Rising interest rates and vacancies, a backlog of evictions, plummeting prices, and inexperienced operators who have NEVER been in a down market. These failed deals could lead to opportunities for you to invest at a massive margin, but how do you know which deal is worth putting money into?
J Scott, world-famous investor, flipper, syndicator, and author, is on the show to explain exactly what to look for in a syndication, whether investing now is the right move to make, and what to know before investing in a syndication. The right syndication can make you hundreds of thousands in a completely hands-off, passive investment. The wrong syndication can tank your entire net worth. How do you know which is which? Tune in!
In This Episode We Cover
Syndication investing explained and whether putting money into this “passive” investment is worth it
The commercial real estate crash and why property values are plummeting
Massive economic headwinds syndicators face in 2023 and why many won’t survive
The danger of “floating rates” and why many syndicators could be forced to sell
Accredited vs. non-accredited investors and who should consider syndication investing
The most critical question you should ask ANY syndicator
And So Much More!
Links from the Show
BiggerPockets Money Facebook Group
Finance Review Guest Onboarding
Grab Scott’s Book, “Set for Life”
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Apply to Be a Guest on The Money Show
Grab the Best-Selling Real Estate Books by J Scott
Syndications: Everything You Need to Know BEFORE You Invest
The Biggest Crash Imaginable is Coming For Commercial Assets
REITs: How to Make Real Estate Money WITHOUT Owning Rentals w/Jussi Askola
Click here to check the full show notes: https://www.biggerpockets.com/blog/money-456
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