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456: The Harsh Reality Real Estate Syndicators (and Investors) Face in 2024

BiggerPockets Money Podcast

English - October 06, 2023 06:00 - 57 minutes - ★★★★★ - 2.8K ratings
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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
BiggerPockets Forums
Finance Review Guest Onboarding
Join BiggerPockets for FREE
Scott's Instagram
Mindy on BiggerPockets
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
Podcast Talent Search!
Money Moment
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
 
Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email us: [email protected]
 
Learn more about your ad choices. Visit megaphone.fm/adchoices

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

BiggerPockets Forums

Finance Review Guest Onboarding

Join BiggerPockets for FREE

Scott's Instagram

Mindy on BiggerPockets

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

Podcast Talent Search!

Money Moment

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

 

Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email us: [email protected]

 

Learn more about your ad choices. Visit megaphone.fm/adchoices