Frequently Asked Questions

Commercial real estate syndication is a process in which multiple investors pool their capital to purchase, develop, or manage a commercial real estate property. A sponsor or syndicator manages the investment on behalf of the investors and typically receives a share of the profits in exchange for their expertise and services.

In a commercial real estate syndication, a sponsor or syndicator identifies a commercial real estate investment opportunity and creates a legal entity, such as a limited liability company (LLC), for the purpose of purchasing the property. The sponsor then solicits investors to contribute capital to the entity in exchange for ownership shares, or units, in the entity. The sponsor manages the investment and the property on behalf of the investors and typically receives a share of the profits as compensation. Investors receive returns on their investment through rental income, property appreciation, and/or the eventual sale of the property.

Investing in commercial real estate syndication can have several benefits, including:

• Access to larger and potentially more lucrative investment opportunities than an individual investor might be able to afford or manage on their own.

• Diversification of investment portfolio, as investors can spread their capital across multiple commercial real estate properties and asset classes.

• Passive income from rental revenue generated by the property, which can provide a steady stream of cash flow to investors.

• Potential for capital appreciation as the property value increases over time.

• Professional management of the property by the sponsor, who has expertise in real estate investing and can handle day-to-day operations, maintenance, and tenant management.

• Tax benefits such as depreciation and deductions for expenses related to the investment property.

• Limited liability, as investors are not personally liable for the debts or liabilities of the legal entity that owns the property.

• Overall, commercial real estate syndication can provide investors with the opportunity to participate in larger real estate investments while also benefiting from professional management and potential financial gains.

The minimum capital required for any of Batal Real Estate syndication is $100,000 USD. All investors must be accredited investors. An accredited investor is an individual or entity that meets certain financial criteria set by the Securities and Exchange Commission (SEC) to participate in certain types of investments that are not registered with the SEC.

To be considered an accredited investor, an individual must have a net worth of at least $1 million, excluding their primary residence, or have had an annual income of at least $200,000 (or $300,000 for married couples) for the past two years with the expectation of earning a similar income in the current year.

Entities such as corporations, partnerships, trusts, and other organizations can also be considered accredited investors if they have total assets of at least $5 million or the entity's owners are accredited investors.

The purpose of the accreditation requirement is to ensure that investors in certain types of investments, such as private placements or venture capital funds, have a certain level of financial sophistication and can bear the risks associated with these investments.

The expected return on investment (ROI) for commercial real estate syndication can vary depending on several factors, including the type of property, location, market conditions, and the investment strategy of the sponsor.

Typically, commercial real estate syndications aim to provide investors with a total return of around 15% to 20% per year, which includes both cash flow from rental income and capital appreciation from the eventual sale of the property.

However, it is important to note that commercial real estate investments are inherently risky and returns are not guaranteed. Market conditions can change, and unexpected expenses or maintenance issues can impact the profitability of the investment. It is important for investors to thoroughly research the sponsor, the property, and the market conditions before investing and to consult with financial and legal professionals to understand the risks and potential returns of the investment.

Like any investment, commercial real estate syndication comes with risks. Some of the common risks involved in commercial real estate syndication are:

• Market Risk: Commercial real estate values can fluctuate due to changes in supply and demand, economic conditions, interest rates, and other factors.

• Operational Risk: There could be unexpected expenses, such as repairs or maintenance, that could impact the profitability of the investment.

• Tenant Risk: The property's cash flow and value depend on tenants paying rent on time, renewing leases, and not causing damage to the property.

• Sponsor Risk: The success of the investment depends on the sponsor's ability to manage the property, execute the business plan, and make appropriate decisions.

• Liquidity Risk: Commercial real estate investments are not as liquid as stocks or bonds, and it may take some time to sell the property and liquidate the investment.

• Regulatory Risk: There could be changes in zoning laws, tax laws, or other regulations that could impact the property's value or profitability.

It is important to understand and evaluate these risks before investing in commercial real estate syndication. Investors should conduct thorough due diligence on the sponsor, the property, and the market conditions before making an investment decision. They should also consult with financial and legal professionals to better understand the risks involved and the potential returns of the investment.

In commercial real estate syndication, a sponsor is the individual or company that puts together the investment opportunity and manages the property. The sponsor is responsible for finding the property, securing financing, forming the investment entity, managing the property, and eventually selling the property. They typically earn a percentage of the profits as compensation for their efforts and expertise.

On the other hand, a passive investor is an individual or entity that invests money in the syndication but does not actively manage the property. Passive investors provide the capital needed to acquire and operate the property, and they earn a return on their investment through the distribution of rental income and the eventual sale of the property. Passive investors generally have limited control over the property and rely on the sponsor to make decisions about the investment.

The key difference between a sponsor and a passive investor is the level of involvement in the investment. The sponsor is actively involved in the acquisition, management, and sale of the property, while passive investors provide the capital and rely on the sponsor to make informed decisions about the property.

The typical holding period for a commercial real estate syndication investment can vary depending on the investment strategy and the market conditions. However, the holding period is generally between 3 to 10 years.

Most commercial real estate syndication deals have a business plan that outlines the investment strategy and the expected holding period. The business plan may include value-add strategies, such as improving the property through renovations or increasing occupancy, with the goal of selling the property at a higher price after a few years.

The holding period is also influenced by market conditions, such as supply and demand, interest rates, and economic conditions. If the market conditions are favorable, the sponsor may choose to hold the property for a longer period to maximize the return on investment.

Ultimately, the holding period of a commercial real estate syndication investment depends on the investment objectives and the market conditions. It is important for investors to understand the expected holding period and the potential risks and returns associated with the investment before making an investment decision.

Commercial real estate syndication can be used to invest in various types of properties, depending on the investment strategy of the syndicate. However, some of the most common types of commercial properties that are typically targeted for syndication include:

• Office buildings: Syndicates may invest in office buildings in central business districts or suburban areas, which can provide stable rental income and long-term capital appreciation.

• Multifamily properties: Syndicates may invest in apartment complexes or multifamily properties that generate steady rental income and have the potential for value appreciation through renovations or increasing occupancy rates.

• Retail properties: Syndicates may invest in shopping centers, strip malls, or other retail properties that have high visibility and are located in densely populated areas.

• Industrial properties: Syndicates may invest in warehouses, distribution centers, or manufacturing facilities that provide steady rental income with long-term leases.

The choice of property type will depend on the investment strategy and market conditions. Syndicates may also invest in a mix of property types to diversify their portfolio and manage risk.

Commercial real estate syndication deals are structured in different ways depending on the investment strategy of the syndicate and the goals of the investors. However, most syndication deals typically involve the following structure:

• General Partner (GP): The GP is the entity responsible for sourcing, managing, and operating the property. They are typically the sponsor of the deal and are responsible for finding the property, performing due diligence, and executing the business plan.

• Limited Partners (LPs): The LPs are the investors who contribute capital to the syndicate. They have limited liability and are not involved in the day-to-day operations of the property.

• Operating Agreement: The operating agreement is the legal document that outlines the terms and conditions of the partnership between the GP and LPs. It includes details such as the distribution of profits, management fees, voting rights, and exit strategies.

• Equity and Debt: The GP and LPs typically contribute equity to the syndicate, while debt financing is used to finance the purchase or renovation of the property. The debt may be secured by the property or other collateral.

• Profit Sharing: The profits from the property are typically distributed to the LPs based on their ownership percentage. The GP may receive a management fee or incentive fee based on the performance of the property or the achievement of certain goals.

• Exit Strategy: The syndicate may have an exit strategy in place, such as selling the property after a certain period of time or refinancing the debt to return capital to the LPs. The profits from the sale or refinancing are distributed to the LPs based on their ownership percentage.

Overall, the structure of a commercial real estate syndication deal is designed to provide a way for investors to pool their resources and invest in larger, more lucrative properties than they could on their own. It also allows the GP to leverage their expertise and management skills to create value for all partners.

The syndicator, also known as the sponsor or general partner (GP), plays a key role in a commercial real estate syndication. The syndicator is responsible for sourcing the investment opportunity, raising capital from limited partners (LPs), managing the property and executing the business plan.

Here are some specific roles and responsibilities of the syndicator in a commercial real estate syndication:

• Sourcing the investment opportunity: The syndicator identifies a commercial property that meets the investment criteria of the syndicate. This involves analyzing market conditions, locating properties, performing due diligence and negotiating the purchase price.

• Raising capital: The syndicator raises capital from LPs to fund the acquisition and operation of the property. This involves creating a pitch deck, marketing the deal to potential investors, and structuring the investment offering.

• Managing the property: The syndicator is responsible for managing the property, including hiring property managers, overseeing construction and renovations, and ensuring the property is in compliance with regulations.

• Executing the business plan: The syndicator prepares a business plan that outlines the goals and strategies for the property. They are responsible for executing the plan and making decisions that will maximize returns for the LPs.

• Communicating with investors: The syndicator provides regular updates to the LPs, including financial reports, property performance, and any changes to the business plan.

• Exiting the investment: The syndicator is responsible for executing the exit strategy, which may involve selling or refinancing the property to return capital to the LPs.

Overall, the syndicator is the driving force behind the commercial real estate syndication, and their expertise and management skills are critical to the success of the investment.

Profits in commercial real estate syndication are typically distributed based on the ownership percentage of each limited partner (LP). The distribution of profits is outlined in the operating agreement that is part of the syndication deal. Here are the typical ways that profits are distributed in commercial real estate syndication:

• Preferred Return: A preferred return is a percentage of profits that is paid to LPs before the GP receives any profits. This is typically a fixed rate of return, such as 8%, and is calculated based on the LPs' initial investment.

• Promote: The GP may also receive a share of the profits, known as carried interest or a promote. This is typically a percentage of the profits above the preferred return, such as 35% of the excess return above the preferred. The GP receives this share of profits as an incentive for their management and performance of the property.

• Return of Capital: Once the preferred return has been paid to the LPs and the GP has received their share of profits, any remaining profits are distributed to the LPs based on their ownership percentage. This can include a return of capital, which is a distribution of a portion of the LPs initial investment.

• Capital Gains: If the property is sold or refinanced, any capital gains are distributed to the LPs based on their ownership percentage. This can include the return of additional capital, as well as a share of the profits from the sale or refinancing.

It's important to note that the exact distribution of profits can vary depending on the specific terms of the syndication deal, and each deal is unique. The operating agreement will outline the specific terms of the distribution of profits to ensure that all parties are clear on how profits will be distributed.

Investing in commercial real estate syndication can have several tax implications for both limited partners (LPs) and general partners (GPs). Here are some of the key tax implications to consider when investing in commercial real estate syndication:

• Depreciation: Commercial real estate syndications offer investors the opportunity to take advantage of depreciation deductions on the property. Depreciation is a tax deduction that allows investors to write off the cost of the property over a period of 27.5 years for residential properties and 39 years for commercial properties.

• Accelerated depreciation through Cost Segregation: Accelerated depreciation through cost segregation is a tax strategy used by commercial real estate owners to maximize their depreciation deductions and reduce their tax liability. Cost segregation is the process of identifying and segregating the various components of a commercial property, such as the building, fixtures, and equipment, and classifying them into shorter depreciation periods than the standard 27.5- or 39-year periods for residential and commercial properties, respectively. The goal of cost segregation is to accelerate the depreciation deductions for the shorter-lived assets, which can include items such as carpeting, lighting, and HVAC systems. By accelerating the depreciation deductions, commercial real estate owners can reduce their taxable income and lower their tax liability. This can result in significant tax savings for the owner.

• Pass-through taxation: Commercial real estate syndication is typically structured as a pass-through entity, such as a limited liability company (LLC). This means that the income, deductions, and losses from the syndication are passed through to the investors' personal tax returns. The investors are then responsible for paying taxes on their share of the profits.

• Capital gains tax: If the property is sold or refinanced, investors may incur capital gains taxes. Long-term capital gains (held for more than one year) are typically taxed at a lower rate than short-term capital gains (held for one year or less).

• State and local taxes: Investors may also be subject to state and local taxes on their share of the profits.

It's important to consult with a tax professional to fully understand the tax implications of investing in commercial real estate syndication and to develop a tax strategy that maximizes your investment returns.

Due diligence is a critical process in commercial real estate syndication that helps investors evaluate the potential risks and benefits of investing in a specific property or project. Here are the key steps involved in the due diligence process for commercial real estate syndication:

• Financial analysis: This involves reviewing the financial statements and projections for the property or project, including income and expense reports, cash flow projections, and return on investment (ROI) analysis. The goal is to assess the financial viability of the investment and determine whether the projected returns are in line with the investor's expectations.

• Market analysis: This involves evaluating the local market conditions, including supply and demand, vacancy rates, rental rates, and overall economic trends. The goal is to determine whether the property or project is well-positioned to capitalize on market opportunities and generate strong returns.

• Legal analysis: This involves reviewing the legal documents related to the property or project, including the purchase agreement, lease agreements, zoning and land use regulations, and environmental reports. The goal is to identify any potential legal issues or liabilities that could impact the investment.

• Physical inspection: This involves conducting a thorough inspection of the property or project, including the building structure, systems, and equipment. The goal is to identify any potential physical issues or maintenance needs that could impact the investment.

• Management analysis: This involves evaluating the experience and track record of the management team responsible for overseeing the property or project. The goal is to determine whether the team has the skills and experience necessary to successfully execute the investment strategy and generate strong returns.

• Risk assessment: This involves identifying and evaluating the potential risks associated with the investment, including market risks, legal risks, physical risks, and management risks. The goal is to determine whether the potential benefits of the investment outweigh the potential risks.

The due diligence process is a critical step in commercial real estate syndication, and it's important to work with experienced professionals who can help you navigate the process and make informed investment decisions.

Amer Batal is a seasoned real estate investor with over 11 years of investing experience that evolved his practice from individual real estate acquisitions to syndicated acquisitions by forming Batal Real Estate. As an individual investor, he was able to acquire $24 million in portfolio value through a blend of residential and multi class commercial real estate.

Amer graduated with a Bachelor of Science degree in electrical engineering from Oakland University in an unfavorable job market which forced him to become an entrepreneur. The blend of professional experience he gained while operating multiple businesses groomed him to invest into real estate. As he began building his tolerance threshold to larger deal sizes that required higher capitalization than what he can individually raise, he knew that in order to continue fueling the momentum of his deal flow, he had to go out to market and raise capital from investors. This is how Batal Real Estate was formed.

Amer has successfully managed notable deals in the residential sector, setting a record for the highest sold property in Shelby Township, MI at the time, to the medical sector with the North Novi Medical office building, to the family entertainment sector with Urban Air Sterling Heights and Commerce, and more. With his track record of successfully building a residential and commercial real estate portfolio, Mr. Batal brings proven expertise in extracting maximum value via strategic real estate targets. He does not simply buy and bloat assets. Each investment undergoes a stringent analysis to ensure the ability to generate free cash flow from day 1 after closing and enhance the overall equity value of the investment. Hands-on management is central to Mr. Batal’s disciplined and collaborative investment approach. His extensive underwriting process involves critical analysis on properties that share the fundamental attributes of great location, growing population density, a healthy tenant mix, potential value add with additional development on the same site, and great cash flow from day 1. Through buying right, his interest is aligned in achieving yours and his target yields with active management and focused appreciation on the real estate holdings.

An exit strategy is a plan that outlines how investors in a commercial real estate syndication will exit their investment and realize their returns. Here are some common exit strategies for commercial real estate syndication investments:

• Sale: This involves selling the property to a third party, either through a direct sale or an auction. The sale price should be high enough to cover the investors' initial investment, any outstanding debt, and any fees or expenses associated with the sale. The proceeds from the sale are then distributed to the investors based on their ownership percentage.

• Refinance: This involves refinancing the property to take advantage of favorable interest rates or to access additional equity. The refinanced funds can be used to pay off any outstanding debt or to distribute cash to the investors. The investors may also choose to hold onto the property for a longer period of time, generating ongoing cash flow and appreciation.

• Buyout: This involves one or more investors buying out the ownership interests of the other investors. The buyout price should be high enough to cover the investors' initial investment, any outstanding debt, and any fees or expenses associated with the buyout. The remaining investors then become the sole owners of the property.

• IPO: This involves taking the property public through an initial public offering (IPO). This is a less common exit strategy for commercial real estate syndication investments, but it can be a viable option for larger properties with significant market appeal.

The choice of exit strategy will depend on a variety of factors, including the investors' financial goals, market conditions, and the performance of the property. It's important to have a clear exit strategy in place from the outset of the investment, as this will help ensure that investors are able to realize their returns and meet their financial objectives.

Commercial real estate syndication involves several fees that investors should be aware of before investing. Here are some of the most common fees associated with commercial real estate syndication:

• Acquisition fee: This is a fee charged by the sponsor or syndicator for identifying and acquiring the property. The fee is typically a percentage of the purchase price and can range from 1% to 3% of the total investment.

• Asset management fee: This is a fee charged by the sponsor or syndicator for managing the property over the course of the investment. The fee is typically a percentage of the property's gross income and can range from 1% to 3% per year.

• Promote fee: This is a fee charged by the sponsor or syndicator if the investment achieves certain performance benchmarks (meets the preferred returns), such as exceeding a certain return on investment (ROI). The fee is typically a percentage of the excess return after the preferred return is met and can range from 20% to 35%.

• Financing fees: This is a fee charged by the lender for originating and underwriting the loan. The fee is typically a percentage of the loan amount and can range from 1% to 3% of the total loan.

• Legal fees: This is a fee charged by the attorney or law firm for providing legal advice and services related to the investment. The fee can vary depending on the complexity of the transaction and the scope of the legal services required.

• Due diligence fees: This is a fee charged by the third-party service providers, such as appraisers, inspectors, and environmental consultants, for conducting due diligence on the property. The fee can vary depending on the scope of the due diligence required.

It's important for investors to carefully review and understand the fees associated with commercial real estate syndication before investing. The fees can have a significant impact on the overall return on investment, so investors should consider the fees in relation to the potential benefits of the investment.

Yes, it is possible to invest in a commercial real estate syndication using a self-directed IRA or 401(k) plan. A self-directed IRA or 401(k) plan allows investors to invest in a wider range of assets, including real estate, private equity, and other alternative investments.

To invest in a commercial real estate syndication using a self-directed IRA or 401(k) plan, the investor must first establish a self-directed account with a custodian that offers this type of investment. The custodian will hold the assets in the account and process the investment transactions on behalf of the investor.

Investors should be aware that investing in commercial real estate syndications using a self-directed IRA or 401(k) plan can be complex and may involve additional fees and paperwork. It is important to work with a qualified custodian and to consult with a tax or financial advisor before making any investment decisions.

Investors should also be aware of the prohibited transaction rules set forth by the Internal Revenue Service (IRS) when investing with a self-directed IRA or 401(k) plan. Prohibited transactions can result in significant tax penalties and should be avoided.

A preferred return and a profit split are two different ways that investors in commercial real estate syndication can receive returns on their investment. Here's how they differ:

A preferred return, also known as a preferred equity, is a fixed return that is paid to investors before any profits are distributed to the sponsors or general partners of the syndication. The preferred return is typically expressed as a percentage of the investor's capital contribution and is usually annualized. For example, a preferred return of 8% per year means that the investor will receive an annual return of 8% on their investment before any profits are divided among the partners. If the syndication is unable to generate enough profits to pay the preferred return, the preferred return may accumulate and be paid in a future year.

A profit split, on the other hand, is a distribution of profits that is split between the investors and the sponsors or general partners of the syndication after the preferred return is met. The profit split is usually expressed as a percentage of the profits generated by the syndication, after deducting any expenses and preferred returns. For example, a profit split of 65/35 means that 65% of the profits will be paid to the investors and 35% will be retained by the sponsors or general partners.

The main difference between a preferred return and a profit split is that a preferred return provides a fixed return to investors regardless of the profitability of the syndication, while a profit split shares profits between the investors and the sponsors or general partners based on the profitability of the syndication. Both structures can be used in commercial real estate syndication, and the choice between them depends on the goals and preferences of the investors and sponsors.

Equity is a way to invest in a commercial real estate syndication. Here's how it works:

Equity investing involves buying ownership shares in a property or portfolio of properties. As an equity investor, you become a part-owner of the property and share in its profits and losses. Your return on investment is dependent on the performance of the property, and you may receive periodic distributions of cash flow, as well as a share of any profits when the property is sold. Equity investing typically carries a higher risk than debt investing, but also has the potential for higher returns.

In summary, equity investing involves buying a share of ownership in a property or portfolio of properties. Equity investing has a higher potential for returns, but also carries a higher risk.

It is possible to invest in commercial real estate syndication even if you are not an accredited investor, but it can be more challenging. Here are some options:

• Invest in a Regulation A+ offering: This type of offering allows non-accredited investors to invest in private companies, including real estate syndications, up to a certain amount. The maximum investment amount varies depending on the offering and can range from $5,000 to $50,000. Regulation A+ offerings have more regulatory requirements than other types of offerings, which can make them more expensive to set up.

• Invest in a Regulation Crowdfunding offering: This type of offering allows non-accredited investors to invest in private companies, including real estate syndications, up to a certain amount. The maximum investment amount is currently $5,000 per year. Regulation Crowdfunding offerings have fewer regulatory requirements than Regulation A+ offerings, which can make them less expensive to set up.

• Invest in a real estate investment trust (REIT): A REIT is a company that owns and manages income-producing real estate. REITs are publicly traded on stock exchanges, which means they are available to both accredited and non-accredited investors. REITs typically offer lower returns than private real estate syndications, but they also carry less risk.

• Invest in a real estate crowdfunding platform: There are several real estate crowdfunding platforms that allow non-accredited investors to invest in real estate syndications. These platforms typically have lower investment minimums than traditional real estate syndications, but they also offer lower returns.

It is important to note that investing in commercial real estate syndication carries risks, and it is important to do your due diligence and consult with a financial advisor before making any investment decisions.

Yes, you can invest in multiple commercial real estate syndication deals. In fact, it is often recommended to diversify your investments across different properties and sponsors to minimize risk and maximize returns.

When investing in multiple commercial real estate syndication deals, it is important to keep track of your investments and ensure that your overall portfolio is balanced and aligned with your investment goals and risk tolerance. You should also conduct thorough due diligence on each deal and sponsor to ensure they align with your investment strategy and are likely to provide a return on your investment.

Additionally, it is important to be aware of the potential tax implications of investing in multiple syndication deals. Each investment may have different tax consequences, and it is important to consult with a tax professional to understand how your investments can impact your tax liabilities and to ensure that you are in compliance with tax laws and regulations.

Overall, investing in multiple commercial real estate syndication deals can be a great way to diversify your investment portfolio and maximize returns. However, it is important to do your due diligence and consult with professionals to ensure that your investments align with your financial goals and risk tolerance.

There are several ways to find commercial real estate syndication opportunities:

• Real estate crowdfunding platforms: There are several real estate crowdfunding platforms that offer access to commercial real estate syndication deals. These platforms allow investors to view and invest in a variety of deals, often with lower investment minimums than traditional real estate syndications.

• Real estate investment clubs: Joining a real estate investment club can provide access to commercial real estate syndication opportunities. These clubs often bring together investors and sponsors, providing a forum for networking and deal sourcing.

• Real estate brokers: Commercial real estate brokers can be a valuable source of information and connections to commercial real estate syndication opportunities. Brokers often have access to off-market deals and can provide insight into the local commercial real estate market.

• Referrals: Word-of-mouth referrals from other investors or industry professionals can be a good way to learn about commercial real estate syndication opportunities. Networking with other investors and attending industry events can help to build these types of relationships.

• Sponsor websites: Many commercial real estate sponsors have their own websites where they showcase their current investment opportunities. You can research and review their track record to see if their investment strategy aligns with your goals.

It is important to conduct thorough due diligence on any commercial real estate syndication opportunity before investing. This includes reviewing the sponsor's track record, understanding the investment structure, and analyzing the underlying property's financials and market conditions.

Conducting your own due diligence on a commercial real estate syndication opportunity is an important step to ensure that the investment aligns with your goals and risk tolerance. Here are some key areas to focus on when conducting your own due diligence:

• Sponsor track record: Research the sponsor's track record, including their experience in the commercial real estate market, their investment strategy, and their past performance. Look for sponsors with a proven track record of success and a clear investment strategy that aligns with your goals.

• Property financials: Review the property's financial statements and projections, including its income, expenses, cash flow, and debt service. Analyze the property's historical financial performance and projections to ensure that the investment is likely to generate a return on your investment.

• Market analysis: Conduct a thorough analysis of the local market, including supply and demand dynamics, vacancy rates, rental rates, and other key market indicators. Understand the trends in the local market and how they may impact the property's performance.

• Investment structure: Review the investment structure, including the terms of the offering, the fees and expenses, and the expected return on investment. Understand the risks associated with the investment and ensure that the investment structure aligns with your goals and risk tolerance.

• Legal documentation: Review the legal documentation related to the investment, including the operating agreement, subscription agreement, and other relevant documents. Understand the legal structure of the investment and ensure that you are comfortable with the terms and conditions.

It is also important to consult with professionals, such as a real estate attorney or accountant, to ensure that you are in compliance with all relevant laws and regulations and that your investment aligns with your overall financial goals and risk tolerance.

Getting started investing in commercial real estate syndication involves several steps:

• Educate yourself: Before investing in commercial real estate syndication, it's important to educate yourself on the basics of real estate investing and the syndication process. You can read books, attend seminars, setup an interview with a sponsor, and take courses to learn more about the industry.

• Determine your investment goals: Determine your investment goals, including your desired return on investment, risk tolerance, and investment horizon. This will help you to identify the types of syndication opportunities that are right for you.

• Build your network: Build relationships with industry professionals, including real estate brokers, attorneys, and other investors. Attend networking events and join real estate investment groups to expand your network.

• Conduct due diligence: Conduct your own due diligence on potential syndication opportunities, including reviewing the sponsor's track record and the financials of the underlying property.

• Invest: Once you have identified a syndication opportunity that aligns with your investment goals and risk tolerance, fill out the subscription documents and invest in the syndication.

• Monitor your investment: Monitor the performance of your investment and stay up-to-date on the property's financials and any changes in the local market.

It's important to remember that investing in commercial real estate syndication involves risk, and you should only invest funds that you can afford to lose. It's also important to consult with professionals, such as a real estate attorney or accountant, before making any investment decisions.