Episode 42: What Is A Property Syndicate? – On The Edge Podcast

Today we’re talking with Property Syndicate Manager Andrew Cushman! Join us for this enlightening conversation on a method of investing that few people even consider, instead going with the classic forms of investment via stocks or real estate purchases.

1:00 – What is a property syndicate? How is this different from just buying some real estate and going from there? What is your role as the ‘leader’ of the syndicate?

4:50 – What are some of the key differences with closing on a $50 Million property? Is it different than closing on a ‘normal priced’ property? We get some pretty crazy answers and numbers here!

8:00 – How do you know that you’re under-contract for the right properties? These are huge investments, how are you sure that they aren’t going to go south?

13:00 – What’s the #1 disqualifies that you see on these large purchases?

28:30 – Why is the sponsor, or the ‘who’ so important? What does cash-flow have to do with a purchase or what the books look like. What role does management play in the value of a property?

34:00 – On the $50 Million property investment, what kind of jump in value did you see? Was there a jump at all? Did the rent increase at all? How do you actually get the added value in the property?

39:00 – What about the investors? What kind of interest or dividends do you see projected for your clients?

43:30 – What is the ‘black swan’ event that can cause returns to diminish on these property investments? What are the ramifications for large scale loss potentials? For example, this last year the federal government allowed people to not pay rent. Did this affect the way you operate your business? Is it actually be better to be part of a syndicate in this situation or just a single property owner?

51:50 – How many properties do you manage? Is this a situation where an investor can just provide the money and ‘set it and forget it?’ What work is required by the investors?

55:00 – Why is there hesitation in going into a property syndicate versus investing in the stock market? Do property syndicates have a bad reputation? Why is the stock market seemingly preferred when you do a bit of research?

1:03:30 – Have you ever lost money in your investments? What’s the worst syndicate you’ve been involved with?

1:08:14 – What is your plan for the next economy downturn? It will happen eventually, is property syndication sustainable through a downturn?

1:19:30 – What is the minimum for an investor to join your syndicate? How about minimum net worth or income to be considered for joining? What is a 506-B? What is a 506-C?

1:23:50 – What’s up with the Evergrande real estate problem with the Chinese Government? Does it have any reprocuctions here in the USA? What do you think will happen with that?

———— Quickly- I’m Scott Groves – Husband, Father, Loan Officer, Coach, Author, Podcaster, and Recent Blue Belt in Brazilian Jiu-Jitsu.

This podcast is paid for and brought to you by…. by me, Scott Groves 🙂 Because I think these kind of long form conversations are valuable, I pay for 100% of the production of this show out of my pocket. This channel is FAR from monetization and because of the subject matter, may never be monetized. I am a Mortgage Loan Officer & Loan Officer Coach in real life. It’s the money that I earn, from helping home-buyers and home-owners obtain home-loans, that pays for this show. If you, your friends, or your family are looking for a home loan from an honest Loan Officer, please contact me at [email protected] I can do the loan for you (our team is licensed in 8 states) – OR – I can refer you to an amazing loan officer in the state where you’re searching. ON WITH THE SHOW!!!

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