Pages Navigation Menu

Grow Your Own, Be Sure

Eradicating Real Estate Investor Fears with Real Estate Syndication

Investing in the real estate market is no easy undertaking. Today, some real estate investors suffer from the current effects of the downturn of the worldwide economy. On the other hand, there are some real estate investors who are having a mighty fine time going with the flow and taking over the real estate market by storm.

Even so, with the current prices in most markets, bank foreclosures, and unemployment rates skyrocketing, a great majority of real estate investors have these fears that the real estate market is already dead. These investors seem to be running around doing their best to immediately close their deals with the many properties they have to deal with in their portfolios.

If you are one of them, for sure you are now preparing to be packing your bags and saying goodbye to the real estate market. In fact, recent surveys show that there are a number of reasons for real estate investors to be afraid of the current real estate market.

Here are some of the fears that real estate investors of today face.

• No cash: Unemployment rates are going up. Personal incomes are going down. Renters in majority of markets are defaulting. Credit card companies are now limiting their cash amount available for people with both bad credit scores and good credit scores.

• No confidence: With the current downturn of the economy, an increasing number of investors no longer have the confidence to get through the coming three years in the real estate market. For instance, a lot of investors have to wait several months before they can close a deal on a property. Some even have to wait for six months just so they can get a broker’s price opinion if they are working with short sale strategies.

• Loan challenges: Loan refinancing for a lower mortgage payment has now become close to impossible. What more if you are going to get a loan? Furthermore, a lot of banks have increased their required down payments on commercial and residential properties as much has 40%.

• No deals: Most condominiums and houses for sale are foreclosures. The reason being that home owners are no longer keen on selling now and then losing all the value they have spent on their houses.

• Not enough buyers: Despite bargain prices, tax credits, and new inventory reductions, investors still do not get enough buyers.

These are just some of the fears that a lot of real estate investors face, most especially the traditional ones. As a matter of fact, these investors will be suffering from poor houses in the coming holiday season if they will not utilize real estate syndication. Yes, you can eradicate these fears in real estate investing with real estate syndication.

Real estate syndication is easy to understand. It is akin to matchmaking. It is currently referred to as the ultimate joint venture in making real estate investments. Basically, you will partner with investors who have the money to invest in the real estate market but just do not have the knowledge to start and close any real estate deals. Most money lenders will not want to be exposed to stronger profit assurances. That is why they would rather lend their money to private investors or syndicators such as yourself who secure your interest against making prime real estate investments. As the syndicator, you can make a number of deals with different investment partners without having to use all your cash and credit to just do a single deal.