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Physician Real Estate

Pros and Cons of Real Estate Syndication for a Physician Investor


July 30, 2020

Harsha Moole, M.D., MBBS


Pros and Cons of Real Estate Syndication for a Physician Investor

 

“Success in real estate starts when you believe you are worthy of it.” – Michael Ferrara


What are the benefits of investing in real estate? Physicians as investors, are presented with numerous investment opportunities. It is a wise idea to understand the pros and cons of Real Estate Syndication for a physician investor. The previous blogs on the basics of Real Estate Syndication discussed the Real Estate Syndication definition and the Real Estate Syndication structure. It is important that you understand the basics of Real Estate Syndication deals before reading this article on the pros and cons of Real Estate Syndication for a physician investor. 

In this article, we will discuss the pros and cons of Real Estate Syndication for a physician investor getting into a syndication investment. We will answer a frequently asked question: ‘What are the benefits of investing in real estate?’


Pros and Cons of Real Estate Syndication for a Physician Investor | Invest for Cash Flow

  • Advantages of Investing in Real Estate

  • Disadvantages of Investing in Real Estate

    • Liquidity: Since there are other investors involved in the deal, you do not control the duration/term of your investment. Usual investment term of a commercial real estate project is 5 to 10 years. You usually get your money back when the property is eventually sold. If you need to exit before that, you need to have a clause included in the agreement that can allow someone else to buy your share. 
    • As with any investments, a commercial Real Estate Syndication investment is subject to be influenced by market fluctuations. You can try to minimize the risks by using smart investment strategies and market knowledge. 
    • You will not have much control over the day-to-day operations of the property. Majority of the day-to-day decisions will be taken by the real estate sponsor. It is not similar to owning a Single Family Rental property by yourself, where you make all the decisions. In syndication investments, important decisions are usually made by the real estate sponsor after consultation with the investors. Difference of opinions or deadlocks are usually resolved by a voting system agreed upon at the time of initial investment. 

 

Every line in this blog post deserves a separate article. Relevant points that require detailed explanation are provided with a hyperlink. Please continue to read through the hyperlinked articles to get more detailed and comprehensive understanding of the topic. 

After you understand the pros and cons of Real Estate Syndication, it is also important to learn about how syndication investments are compared with other forms of investments. In the next part of this series, you will learn about real estate returns – how much profits you can make by investing in syndication investments. 

 

You will find the rest of the topics regarding Real Estate Syndications for a physician investor here.

Here at PhysicianEstate, we welcome all physician entrepreneurs to learn about commercial real estate investments, rental property investments, and wealth generation. We encourage all physicians to eventually become real estate physician investors. We know a great deal about Who – What – Why – How. 

Stay in touch with us by signing up for our newsletter. The newsletter will keep you up to speed on the current real estate investments we are looking at, provide physicians with investment opportunities, and much more.  

 

Pros and Cons of Real Estate Syndication

Legal Disclaimer: This is not investment advice. I am not a legal and/or investment advisor. This is my personal blog, and all information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. These are my views, it is not a production of my employer, nor is it affiliated with any broker/dealer or registered investment advisor. While the information provided is believed to be accurate, it may include errors or inaccuracies. To the maximum extent permitted by law, PhysicianEstate disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. You should consult with an attorney or other professional to determine what may be best for your individual needs. Your use of the information on the website or materials linked from the Web is at your own risk.

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Authored by Harsha Moole, M.D., MBBS

Hey there! I hope you enjoyed reading this blog. PhysicianEstate is my brain child and passion project. I run this platform to empower entrepreneurially motivated physicians to make financially educated investment decisions and discuss asset protection strategies. Lots of important but free content here and here! If you have any questions or if you are interested in partnering with me, let’s connect! hmoole@physicianestate.com

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