Top 7 Fears of Real Estate Investors Today & How Syndication is the Answer
Be on your way to becoming financially independent as a real estate syndicator and have an enjoyable, recession-proof business that begins to work for you for the rest of your life... As a real estate investor, are you suffering from this massive, global economic meltdown, or are you actually taking advantage of this "Perfect Real Estate Storm" of opportunity?
You see, with unemployment rising, bank foreclosures skyrocketing and prices in most real estate markets falling more than half from their peak, many real estate investors believe that the market is dead. These investors are running around like a chicken without a head, desperately trying to close real estate deals as they struggle to manage their existing portfolios.
If you're one of them, then it's no wonder why most real estate investors today are packing their bags and leaving the market afraid! After all, in a recent survey polling residential real estate investors, it was discovered that real estate investors today have many reasons to be scared.
The Top 7 Fears of Real Estate Investors Today
1. Lack of Cash - Personal incomes are dropping. Unemployment is nearing record highs. Renters in most markets are defaulting. Credit card companies are cutting the amount of cash available even for those who have amazing credit scores and always pay back on time.
2. Lack of Confidence - Many investors are lacking confidence in their ability to get through the next three years of this huge downturn. For example, many investors are finding that it's taking months to close a property deal. If you're working real estate short sale strategies, because banks are so burdened with offloading inventory, you could wait six months just to receive a BPO (Broker's Price Opinion).
3. Loan Challenges - A friend of mine couldn't even refinance his house for a lower mortgage payment than what he's paying right now because the household income dropped since his wife's death. If he can't refinance his home for a lower payment, what do you think your chances of getting a loan are? What's more, banks have raised down payment requirements on residential and commercial properties to as much as 40%.
4. Can't Find Deals - The majority of housing and condo sales are foreclosures, as homeowners don't want to sell now and lose all the value that they put into the house.
5. Not Enough Buyers - Yes, incentives like the tax credit are beginning to enter the market. Yes, we are starting to see a reduction in new inventories. The key word is "starting." Yet in many markets, investors are finding a lack of buyers even at bargain prices!
6. Takes Too Much Time - Many old-hat real estate investors are spending their days and nights trying to close deals. Most of their time is spent late at night on their computers, or traveling around the country hopping from one airport to the next, in hopes of getting that six- or seven-figure real estate deal done, just to be disappointed again and again.
7. Lack of Knowledge - Old-hat real estate investing requires you to understand negotiation strategies, NLP mind tricks, what's-working-now techniques, real estate contracts, and how to adapt to opportunities in more than one marketplace, using more than one investing strategy.
Now, I can completely understand these fears of old-hat real estate investors. In fact, the probability is extremely high that investors operating in that fashion will be in the poor house by Christmas, unless they harness the power of real estate investing syndication.
How can real estate syndication solve your problems?
As National Business Credit Expert Thomas Kish says, "Real estate investing syndication drastically reduces the risk and barriers to entry for creating a business of your dreams that is typically unknown to 99% of us."
What Real Estate Syndication Is and How It Will Help You
The idea of real estate syndication is pretty simple. I define it as matchmaking. It's the ultimate joint venture investment business.
You partner with investors who have money to invest in the real estate market, but do not have the expertise required for setting up and closing real estate deals. The money lenders want to limit their exposure with a stronger assurance of profits, and lend money to syndicators or private investors who secure their interest against prime investment real estate. This enables the syndicator to do a number of deals by leveraging multiple investment partners, rather than using their own credit or cash to try and do a single deal.
Now you, as the real estate syndicator, put the deal together and receive a significant share of the profits (between 20% and 50%) without having to invest your own money. Using your real estate knowledge and business skills, you drive the entire real estate investing syndication business model forward.
By operating this way you can:
* Become a major player in the market without risking any of your own capital
* Build a formidable reputation
* Do more deals by leveraging this concept
* Create a fortune for yourself without using your own money
In other words, when you transform your real estate investing business into a syndicator, you create a win/win/win for everyone involved.
How Real Estate Investing Syndication Has Helped Others Grow a Six-Figure Real Estate Investing Business with Little Time and Effort
* Using these techniques, with only 10 hours of time invested into a deal, Jay Redding syndicated his first commercial real estate property in Indiana earned $250,000 of cash and equity profits.
* Following this methodology within 5 weeks, Certified Financial Planner, Michelle Agar syndicated her first group of 5 investment properties in Edmonton, Alberta, earning her $269,000 in profits.
* Re-inventing himself as a real estate syndicator, with just 10 hours of effort, Robert Beagle closed his first real estate deal and made over $61,000 in profits on a property he had never seen!
Once you grasp the concepts, you will be on your way to becoming financially independent as a real estate syndicator and you will have an enjoyable, recession-proof business that begins to work for you for the rest of your life.
What does syndication do?