Back to News & Views

How to find the right real estate syndicator for you

August 1, 2022
Categories: Commercial, Investments, Residential

Property syndication has blown up in popularity. While that’s great for your confidence in this respectable and prosperous investment avenue, it unfortunately means there are many subpar investment companies vying for your capital. Here’s how to choose the right one for you.

Last week, we talked about the differences between investing in a property syndicate and investing alone. If the former floated your boat, then it now comes down to finding the right property syndicator for you.

Property syndication has blown up in popularity. While that’s great for your confidence in this respectable and prosperous investment avenue, it unfortunately means there are many subpar investment companies vying for your capital. Choose the right one by getting your clipboard out and investigating the company yourself. Here are a few things to consider before committing to a property syndicator:

Ensure they have a history of success

While it’s unlikely a syndicator would have zero experience in the property market, you’ll want to have an idea of what to expect when you hand over tens or hundreds of thousands of dollars for investment. What was their best result? What was their worst result? How did they add value to their investments?

Check their credentials

how to choose the best property syndication business

Just as you might eye-off a doctor’s certification on their office wall before listening to their diagnosis, you should ensure your prospective fund manager has the right licences in place. At the very least, they should have an AFSL (Australian Financial Services Licence), which proves they are compliant with the Australian Securities and Investments Commission’s strict standards. Learn more about AFSLs here.

Ask how often you’ll get paid

You’ll want returns distributed to you as often as possible (money in your pocket is always better than in someone else’s), so find out if you’ll receive distributions on a monthly, quarterly or even annual basis. Monthly is of course ideal and prized by most experienced syndicate participants.

What’s your gut feel?

Sometimes it’s best to go with your first opinions. So, meet with the fund manager, or at least jump on a phone call with them, before you commit to any investment. The character of those running a syndicate can sometimes be the final push to get you over the line to invest – or the warning you need to walk away.

Is communication a big part of their process?

Imagine placing a quarter of a million dollars with a syndicator and not hearing any updates in over a year. You’d have to wonder whether they’ve skipped town with your cash. Save the worries and ensure you’ll be updated regularly on the decisions and considerations pertaining to your investment. Communication is key when finding the right real estate syndicator.

Start the questions now

Get in touch with us to find out whether Properties & Pathways is a good fit for you. Or check out the rest of our website, where our past performance, current investments and company mandate are all housed under one roof.

Like what you see? Then book a meeting with our Director (Investor Relations) Guy Doggett. His schedule is below.

 


properties and pathwaysProperties & Pathways is a dynamic Australian property investment company. Our completed syndicates have provided investors an average annualised return of 25.91%. For more information on how you can invest alongside us, get in touch today.