Real Estate Syndication


Investing in Real Estate Syndication with Saint Investment

Real estate syndication has recently gained popularity among accredited investors who realize they can often significantly improve returns and diversification by investing together with a skilled operator on larger projects. Working with best-in-class sponsors, it is now possible for investors to access institutional-quality real estate investment deals anywhere in the country. Saint Investment Group is your inroad to the real estate syndication world of investments.

What is Real Estate Syndication?

Syndication is similar to the difference between stocks and mutual funds. In single property syndication, much like stock in a single company, all investor risk hinges on a single investment. On the other hand, like a mutual fund, a real estate syndication fund allows investors to buy a share of multiple properties, which spreads their risk around for better stability, more diversification, and a higher likelihood of quality returns on the property syndication fund.

In a real estate syndication, multiple investors combine their capital to buy, build, and often renovate a commercial property. With a real estate syndication fund, multiple commercial properties are included in a portfolio that syndicate investors buy into.

A fund like those offered by Saint Investment Group provides more robust capital preservation and lower volatility than investing in a single property. More importantly, we’re seasoned experts at managing a collection of properties within real estate funds, freeing your time and energy. The types of syndication real estate include multiple commercial properties, such as offices, retail space, industrial buildings, and even student housing on college campuses.

Real Estate Syndication Origins

Real estate syndication isn’t a new form of investment—it’s been around for centuries, just not with the use of the internet as a way to learn about them and get involved. Until now, real estate syndication has been mainly operating out of the limelight, especially after the Securities Act of 1933 began regulating them. Before that Act was passed, syndicate organizers, also known as sponsors, could advertise and sell their syndication real estate to anyone.

The regulation structures set forth by the Securities Act of 1933 allowed for new ways for investors to work together. This Act drove syndication real estate sponsors to often build private networks of investor relationships. Often, these networks included individuals who were successful in their communities, along with successful professionals such as doctors and lawyers. These real estate syndications were built on quality personal relationships.

Perhaps the most famous example of how property syndication provides more options for purchasing real estate is the syndication investment group that bought the Empire State Building in the early 1960s. Around 3,300 shares of ownership at $10,000 per share gave the syndication the $33 million it needed to purchase all 102 stories of the highly desirable Manhattan property. Each investor had access to a significantly larger opportunity than they would have had on their own, and the benefits were massive.

commercial real estate investment

The Transition To Online Real Estate Syndication

A massive opportunity for accredited investors opened up in 2012 when the JOBS Act was passed. In this Act, the SEC was directed to begin allowing syndications to engage in public solicitation more openly, with the requirement each investor is accredited. This rule change is often cited as the true beginning of the real estate crowdfunding industry, making it far easier for investors to gain access to real estate investment opportunities they’d otherwise never know about.

By leveraging new technologies online and connecting people better than ever before, platforms for real estate crowdfunding have grown, providing investors with excellent access to quality real estate assets. There’s also the ability to build in more transparency, with strong reporting and easy-to-access financials. This offers real estate investors a smarter, better informed, and more secure option for real estate investing than in the past.

The true beauty of real estate syndication is the ability to spread risk over a much larger pool of investors while considerably increasing the potential deal size. Online platforms for real estate investment are raising the bar for the level of property investors can buy into.

Another benefit of online real estate syndication is the possibility of investing in deals anywhere across the country, regardless of where the investor lives. This is a major opportunity for those investors who happen to live in more rural areas or areas with little real estate investment options locally. Some areas of the country are experiencing multiple times the growth of other areas, making some markets a significantly smarter and more secure investment than others. Investing in a quality syndication affords much greater access for investors.

What Difference Does Online Syndication Make For Investors?

Managing syndication real estate online enables operators to instantly update reports with key performance metrics that provide deep insight into every deal and even key decisions. Transparency and reporting through online platforms are lightyears beyond previous syndication investment methods, enabling greater efficiency and scale. Leading platforms include highly optimized workflows, from the property acquisition to advanced reporting, to collecting rents more efficiently.

Stable, Strong Returns On Commercial Real Estate Syndication

When you’re seeking diversification that offers more stability along with strong returns, commercial real estate syndication funds are one of the smartest options available to accredited investors. Saint Investment Group can get you started with a solid foundation in commercial real estate fund investing. Reach out to a member of our team today to learn how you can get involved in the commercial real estate market. Saint Investment Group is here to provide the portfolio diversification you’ve been seeking.