How to Become a Real Estate Syndicator

Last Updated: 

June 14, 2024

If you've ever considered a career in real estate as a legal mind, then you may have seen the information out there about syndication attorneys. Real estate securities attorneys are often involved in syndications when it comes to buying private property.

Helping small businesses to buy property could also be your new job, but understanding how to become a real estate syndication is important. Below, we've listed some of the steps that you need to take on your way there.

Key Takeaways on Become a Real Estate Syndicator

  1. Choosing an Asset Class: Real estate syndication attorneys must select a specific asset class and undergo relevant training to gain expertise.
  2. Understanding Syndication: Syndication involves pooling money from passive investors to buy real estate, covering expenses like down payments, closing costs, and capital improvements.
  3. Raising Capital: Typical capital raise for a value-add property is about one-third of the purchase price, which requires strategic planning and knowledge of securities laws.
  4. Building Your Brand: Establish a unique brand name that reflects your personality and business model, ensuring it is not already in use.
  5. Developing a Business Model: Create a comprehensive business plan that details your selected asset class, investment strategies, and financial projections to attract and inform investors.
  6. Legal Knowledge: Familiarise yourself with specific securities laws that govern the pooling of capital for private investors to ensure compliance.
  7. Continuous Learning: Engage in ongoing training through podcasts, boot camps, webinars, and home study courses to stay updated and improve your skills.
Want to Close Bigger Deals?

Choose an Asset Class

Real estate syndication attorneys have to choose an asset class and get training within it. If you're not sure what asset class to pick, then get trained in different asset classes so that you have a broader knowledge. Podcasts, live boot camps, webinars, and home study courses can all help you to pick the asset class that feels right for you. Once you've done that, you can get further training from better and more advanced courses.

Learn What It Means to Syndicate

The basic premise of syndication is pooling money from passive investors to buy real estate. Often this comes from a team of business people who are buying private real estate and using it for commercial purposes. You'll need to raise funds for the property down payment, the closing costs, the capital improvements and the legal fees. There are also the operating capital and reserves and the pre closing expenses to consider. Typical capital raise for a value add property is 1/3 of the purchase price, so you can imagine it's quite steep. You can syndicate or you can do joint ventures, but joint ventures often require that all investors stay actively involved in generating their own profit. There are also specific securities laws that apply to Pauling Capital for private investors, and that's something you should look into.

Consider Your Brand

If you're becoming a real estate syndicator, you need to build your own brand and choose a name that fits your personality along with your business model. Always do a Google search to see whether or not your brand name ideas have been taken already, so that you're not trying to register a brand name that's already been done. Your brand name will be used to form a company and this company will represent you potentially in multiple deals.

Consider Your Business Model.

This is going to identify your selected asset class, where you're looking, and how you're going to do it to make it profitable. Your investors want to know where the money is coming from and how it's being spent. You can put all of this in writing into a business plan and get some help with writing that as well. 

Conclusion

Real estate syndication doesn't have to be so difficult - it just takes training and practice to get there. You can start your own business as a syndication attorney and turn the tide for the future you want to build and the future of others.

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