Are real estate syndications dead? Some multifamily syndicators are making capital calls and hiding information from investors who anxiously wait (and pray) for their money to be returned. A lot is going wrong, so should you pause investing in real estate syndications for now, or should you write them off entirely? Brian Burke, who saw it coming and sold almost everything before prices fell, is on today to give us his answer.
Joining him is a fellow syndication investor and BiggerPockets CEO, Scott Trench, who’s had his fair share of syndication headaches over the past few years. We’re going back in time, talking about what exactly went wrong for multifamily syndications, why we saw a rise in untrustworthy/inexperienced syndicators entering the market, and why multifamily specifically is taking the majority of the headwinds.
We’re also sharing the numbers on the almost unbelievable amount of multifamily investors who have short-term loans coming due, all at a time when interest rates are still high and values are close to (if not at) the bottom. We’ll even talk about our own failed deals and whether or not we’d continue investing in syndications.
In This Episode We Cover
Real estate syndications, general partners, and limited partners explained
Why the multifamily real estate market is a “traffic collision” in 2024
Areas of the country with the highest/lowest risk for real estate syndications
The astonishing amount of distressed investors with short-term loans coming due
Our own failed investments and whether we’d still invest in syndications
When multifamily real estate investments could finally rebound and become investable again
And So Much More!
Links from the Show
Join the Future of Real Estate Investing with Fundrise
Join BiggerPockets for FREE
Find Investor-Friendly Lenders
See Dave and Scott at BPCON2024 in Cancun!
Dave's BiggerPockets Profile
Scott's BiggerPockets Profile
Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why
PassivePockets
Brian's BiggerPockets Profile
Grab Brian's Book, “The Hands-Off Investor”
Jump to topic:
00:00 Intro
01:38 Real Estate Syndications Explained
11:11 Things Have Changed
19:07 Multifamily is a “Traffic Collision”
24:29 WHERE to Invest
29:20 Underwater Syndications
38:23 Are Syndications Dead?
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-256
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