A short instructional YouTube video by Wayne (CREI Partners) explaining the step-by-step process for passive investors to participate in a real estate syndication: investors receive a deal alert, submit a non-binding soft reserve/soft commitment to hold a spot, allocations are handled first-come-first-serve, investors confirm spots, review and sign legal documents (PPM, operating agreement, subscription agreement), wire funds per PPM instructions, become limited partners, and then wait for closing. The video ends with calls to action to join CREI Partners’ Investors Club and engage with the channel.
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Foreign. Just start off by saying, I agree with you. The overview process of investing and making money by investing in real estate syndications sounds too easy. So once you decide that you want to invest in a syndication, what happens next? Hi, I'm Wayne with CREI Partners and in this video we're going to talk about the nitty gritty details, the actual process of investing in a real estate syndication. First, when a new investment opportunity opens up, a deal alert will be sent out. You, as a passive investor, would be notified that there is an open deal ready for investors. At that point, we start taking what we call a soft reserve or a soft commitment to gauge interest in the deal. We recommend that you work on getting all of your ducks in a row before that deal comes out. So you see a deal that you like, you're ready to jump on it. When you put in a soft reserve, you're basically saying, I would like to invest X amount into this deal. You're just throwing your name into the hat to say that you are interested in this investment. You're not committing to anything, you're not signing anything, you're not wiring your funds, you're literally getting in line. After you put in your soft reserve, it buys you time to go back and look at the investment summary and other information to help you decide if you want to invest in this deal or not. Then we will take a look at all the soft reserves based on first come, first serve basis and notify you if you have a spot in the deal. This point's up to you to decide whether or not you want to confirm your spot or pass on the deal. Once you confirm your spot in the deal, the next step is the legal docs. I know this is everybody's favorite part, but it's a very necessary, important step. Often this will be referred to as the PPM or the Private Placement Memorandum. It's a long legal document with a lot of legal language in it. You'll have the ppm, the operating agreement, and the subscription agreement that covers the fine print of how this deal will work, your role as the investor, the general partner's role, what the business plan is, and more. When you get the ppm, you're definitely going to want to read them carefully and make sure that you get all of your questions answered. After signing the ppm, the next step is to send in your funds. The most common way to do this is to wire your funds where you can find the instructions in the ppm. Once you've got your PPM in and you've got your funds in, you're done. Your active participation in the deal is done. You're not required to do anything else. You have solidified your spot in the deal. You are a limited partner investor in the deal. And and now the next step is to wait for the closing Drop a comment and tell me if you have invested in a syndication, what were some of the biggest obstacles you ran into when investing in a deal? And if you haven't yet invested in a syndication, what's holding you back? In the description below is a link to join the CREI Partners Investors Club where you'll learn more about real estate syndications and how they can help you achieve financial freedom. I'm telling you, the life you've always wanted is possible. Last but not least, help others find this video by giving it a thumbs up below. Want to hear more about syndications? Make sure you subscribe to my channel. Feel free to share with a friend while you're at it. I'm Wayne with CRI Partners. Thank you so much for joining.
