EP 138: How to Use Syndication Investments to Maximize Real Estate Cashflow

In this episode of Agents Building Cashflow, Randal dives into the world of real estate syndication, offering invaluable insights for agents looking to leverage their earnings into passive income through multifamily and commercial investments. Randal simplifies complex concepts like IRR, equity multiples, and the structure of syndications, using his expertise to explain how pooling capital works to acquire significant assets. 

This episode is packed with actionable advice aimed at agents aspiring to transform their commissions into substantial cash flow. If you've ever considered investing in large-scale properties but didn't know where to start, this episode is a must-listen! Tune in to decode the secrets of successful syndication investments and learn how to make your money work for you.

Key takeaways to listen to:

• How syndication allows investors to pool resources to purchase large properties like apartment buildings and commercial spaces.
• The roles of general and limited partners in a syndication.
• Access to bigger deals, professional asset management, and potentially higher returns that come from investing in syndications.
• How real estate agents can start investing in syndications.

Resources mentioned in this episode:

• RAM Capital Fund - https://www.ridgelineig.com/ram-capital-fund-i

If you’re interested in learning more about investment opportunities and multifamily funds, just contact Randal at podcast@agentsbuildingcashflow.com. 

To connect with Randal and learn more about passive investing, visit www.ridgelineig.com and follow our social media pages below!

• Ridgeline Investment Group on LinkedIn: https://www.linkedin.com/company/ridgelineig/ 
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• Send us an email: rm@ridgelineig.com

To connect with Randal and learn more about passive investing, visit www.ridgelineig.com and follow our social media pages below!

• LinkedIn: Ridgeline Investment Group
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• Subscribe to our YouTube channel: @agentsbuildingcashflow
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• Send us an email: podcast@agentsbuildingcashflow.com 

Transcript

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[00:00:00] Intro: If you're a real estate agent earning 200, 000 a year and you want to grow your passive income, this show is for you. Learn secrets other agents use and hear from experts in our field who will guide you on your journey to investing in assets like apartment communities so you can take your commissions and turn them into cashflow.

[00:00:20] Intro: Here's your host, Randall. Let's dive in. 

[00:00:22] Randal McLeaird: Hey, welcome back. It's good to have you on a Friday episode. I have taken off a couple weeks on Fridays and I'm glad to be back. And talk to you guys and have conversation with you on Friday. I just interviewed a couple of people today and it made me realize I need to go back and cover some topics that we've covered in the past, but maybe bring them forward and bring them fresh and liven them up a little bit.

[00:00:43] Randal McLeaird: I'm gonna hit these pretty quick. These Friday episodes are going to be five to 10 minutes long, and I'm going to make sure that it's just packed with a quick. Content on some of the things that we're talking about. So I just interviewed Victoria McGuire. She's a syndicator out in Florida market, but they buy all over the Southeast region and [00:01:00] they're crushing it.

[00:01:00] Randal McLeaird: They've raised 5 million in the first year going to three to five different deals. Three deals, I think. And so, her and I have a great conversation that's gonna come out in the next couple weeks. But what it made me think about, she rattled off a few acronyms, like I-R-R-A-A-R equity multiple, like all these things.

[00:01:16] Randal McLeaird: And so I think it'd be helpful to go through and start talking about some of these things. First thing I'm gonna talk about today is syndication. Just do a quick re recap on what syndications are so that you understand what it is when I'm talking about these things. A syndication, it really, what it is, it's a group of investors that are pulling their capital to acquire a single asset. And so we talk about a lot on the show because as Victoria and I discussed today, there is.

[00:01:40] Randal McLeaird: For some reason, as real estate professionals and agents, we in the residential world don't really know as a group on on mass what syndications are. It's not something that we are taught in real estate 101 class, right? And so this is used to buy large assets for the most part commercial assets.

[00:01:58] Randal McLeaird: A lot of people will [00:02:00] pull their capital together to go out and buy a 50 million, a hundred million dollar property. And it's syndication is one way to do it again. This is focused specifically for a single asset. So what happens is you have, let's say one, two, three main street. Let's call it a multifamily, like a bunch of rooftops here, and you have a general partnership team that found the deal. They're bringing the deal to the table and they are then going to go raise the money from limited partners. So all the money's coming in here and the general partners are going to run that deal. So the limited partners, they are investing some of the money. The general partners typically are putting money into the deal as well, and they're going to run it as the general partner.

[00:02:42] Randal McLeaird: Operate the deal, make sure that it's making money. They are the experts in the field, right? Experts at running the asset and the limited partners are investing. They don't have to do any of the work, but they get the benefit of the professional work being done by the general partners.

[00:02:58] Randal McLeaird: Okay. So why is this helpful and why [00:03:00] would you want to invest in a syndication? Typically, you're not going to have access to these types of deals if you're not focused on it full time. And so these guys, the general partners, like myself and operators in the field, they understand the asset.

[00:03:13] Randal McLeaird: They are the experts who go and find them, acquire them run them. And so you get to, Benefit from their expertise of buying those deals be very difficult. Otherwise for you to go out and do it on your own most of the time. Similarly you can take your 50 to 150, 250, 000, sometimes millions of dollars and put them into these deals.

[00:03:34] Randal McLeaird: Where the capital needed to do the deal, maybe 10, 000, 000 and you can take your 50, 000 and put it in and you're a piece of that larger deal. So you get some outsized returns and returns for your investment. So again, a lot of reasons why you should or could invest in these deals.

[00:03:50] Randal McLeaird: This is a quick recap on what syndications are. There are a ton of episodes that go back. We talk about syndications in depth and some things that you can ask the [00:04:00] operators of syndications if you're a limited partner or looking to become a limited partner in those deals like very first few episodes that we had in the show, you can go back and listen to some of those.

[00:04:08] Randal McLeaird: So for now, again, this is just a quick recap. If you have any questions, please reach out, feel free. It's podcast at agents building cashflow that will come to me. And I'm happy to answer any questions that you have on that. And we will catch you guys on the next episode. Did you know that 80 percent of the agents we speak with got into real estate in order to gain passive income so they could obtain financial freedom and become work optional?

[00:04:28] Randal McLeaird: If you want to stay up to date, the best way is to make sure you're subscribed. So if you haven't done that, go ahead and do it now. We'll catch you on the next episode.