BiggerPockets Real Estate Podcast

Real Estate Syndications 101: What To Know BEFORE You Invest

Dec 25, 2024
Devon Kennard, a former pro football player turned syndication investor, shares his journey into the world of real estate syndications. He explains why he moved from single-family homes to passive investments and highlights key concepts like vetting operators and the benefits of syndications. Listeners learn about minimum investments, cash flow, potential profits, and red flags to watch out for. The conversation emphasizes the importance of communication with syndicators and transparency in building successful investment partnerships.
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ANECDOTE

Devon's Investing Journey

  • Devon Kennard started investing in single-family homes after his NFL rookie season.
  • He transitioned to syndications for faster scaling and more passive income.
INSIGHT

Syndications vs. Funds

  • A syndication involves general partners (GPs) who manage the deal and limited partners (LPs) who invest capital.
  • A fund is similar but raises capital for a general property type before specific deals are identified.
ADVICE

Syndication Advantages

  • Syndications offer easier scaling, more passive income, and diversification across asset classes and locations.
  • They also provide tax benefits like depreciation, similar to direct property ownership.
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