Start your own property investment syndicate

Start a Syndicate

This video explains the benefits of starting your own small private property investment syndicate. Property syndicates are typically groups of 2 to 5 like-minded friends, and or, family members, who use a property investment as a vehicle to achieve their shared financial goals. Syndication offers smaller property investors, with limited available capital, the opportunity to invest in commercial, rural and residential properties, that would otherwise be out of reach financially.

Ok, you might ask, “why would I bother trying to figure out how to start a property investment syndicate? I wouldn’t have a clue how to begin”. Well, though this may at first seem a complicated undertaking, it’s actually a lot easier than you might imagine, and there are a number of excellent reasons why co-owning property with others is something worth considering, if you dream of owning property, and securing a better financial future.

1. It can make you money.

2. It can save you money.

3. It saves you time.

4. It manages your risk.

5. It makes you feel good

Ask yourself, How much is getting into the real estate market quickly, worth to you? It’s a well known fact that real estate investment is one of the best ways to build wealth.With this in mind, I’d like to demonstrate that forming a small property syndicate to purchase real estate is a very smart move, by working through a simple hypothetical example. Let’s assume that you find a modest but attractive house, that has capital growth potential, and is on the market for $450k.

This property is in an area, that your research tells you, will grow in value by 10% over the next year, and earn 8% in the year after. But on your own, you would not be able to raise the required loan, nor could you comfortably afford the payments over those next 2 years. However, if you decide to talk to a few people you know, with the aim of setting up a property collective, let’s say with 2 other friends, you may find that, by pooling your resources and borrowing potential, you can buy that property now, as a group.

Going by your research, at the end of Year 1 this property will be worth $495k, and at the end of Year 2 it’s value would have grown to $534,600. Your investment group would make a capital gain of $84,600. As your group has 3 members, over this period you are each $28,200 better off, than if you had done nothing and waited. Your decision to do something has earned you and your colleagues $1,175 per month, in total.

And these calculations only consider capital growth. They don’t factor in either the cash flow benefit of having rental income to help pay your servicing costs, or the tax benefits of investment property ownership. And for each of you, the risk was smaller. The Tenant in Common Exchange, which is known as ticX for short, is an online platform set up to support property investment syndicates, and help people get a start in real estate earlier.

TicX offers clear guidance on how to set up a private real estate syndicate, & sets out the steps to create a secure legal relationship, and, most importantly, offers liquidity for your share, through it’s trading exchange, where you can on-sell your property shares.

So, consider forming your own property syndicate, for a more prosperous future, and discover the Tenant in Common Exchange.