Why Syndications are the Key to Investing

The reality of the investing environment we're now in is that banks want a substantially larger down payment than they have in the past. It's not uncommon that a commercial mortgage will require 65% loan to value (LTV) or lower, requiring you to come up with 35% or more down payment.

This presents a challenge for many investors: do you invest in a cheaper property? Do you wait until you have enough for the down payment, potentially missing one of the best times in history to invest in commercial properties?

Investing as a group is the answer to obtaining larger, more desirable properties that yield higher returns without having to come up with the entire down payment on your own.

Group investing must be done intelligently, to avoid conflicts between investors with different needs, and to allow the expert team to utilize the highest and best use for each asset. In addition, specific legal rules from the Securities and Exchange Commission (SEC) must be followed when you invest as a group when the sponsor is responsible for the investment.

Setting up the syndication correctly is important for protecting each investor, and limiting their liability. It allows the risk of investing to be spread over multiple investors.

Investing in a syndication provides a means of investing in properties that would otherwise be unreachable, and it also provides a hassle-free, professionally managed method to own commercial real estate.

Synture Group practices Ethical and Legal investing. We understand the rules of the SEC and ensure that everything is fully disclosed. After all, we want to build a long term professional relationship with our investors, for the mutual benefit of all.