The Advantage of Syndication in Real Estate Investing

The Advantage of Syndication in Real Estate Investing

I was an individual investor for years. When I stumbled across real estate as an investment vehicle and alternative to stocks, I wanted to jump right in and started with the most logical and simplest strategy: buying and holding single-family homes. I followed many who were doing it and achieving cash flow and financial freedom and I wanted to do the same.

After only two single family homes, I did the math.
I would need to get to 40+ single family homes in order to meet my cash flow goals. That is a lot of purchase and sale agreements and roofs to manage! I know that it worked for many, but this simply was not the right fit for me. There had to be something else.

I came across the concept of syndication.
Syndication is nothing more than pooling funds with other investors to acquire a large asset. That could be a business or property, such as real estate. I was particularly attracted to this model for a two reasons: scalability and sharing wealth with others.

Scalability: Rather than spend the next twenty years buying 40 individual homes, I could syndicate a 40-unit apartment complex within the next two years. Realizing I could easily 10x my goals, I was very interested.

Sharing the wealth: If you look back at history, most notable entrepreneurs and investors created wealth not only for themselves but for other investors. Warren Buffet, Steve Jobs, J.P. Morgan, the list goes on. Wealth creation for many is just a bi-product of setting sights higher towards a world-changing vision.

Here is an inspirational example.
During this holiday season I occasionally saw the Amazon van come through my neighborhood up to 3 times in one day. I asked myself, why do they need to send so many vans, and not one big van? I quickly realized that in order to serve customers in two days, multiple vans and routes are needed. I instantly thought about the capital needed to run such an operation. Wow, that must take a lot of money to make it work.

Then I realized, a team of people alongside Jeff Bezos worked to raise lots of capital to support this gigantic mission of serving the world with virtually any sort of product and service in record time! One person’s funds could never pull that off. It took a syndicate.

In real estate, some of the best deals are the bigger ones that require more funds to acquire. Fit hose who can raise this capital for larger projects are rewarded along with their investors.

Robinson Capital has a two-part mission: that is to provide communities with great and safe living and serve investors with great real estate wealth-building vehicles. We do this by syndicating multi-family assets. Doing so allows our our investors to achieve passive income, diversify their portfolios and grow their wealth through real estate.


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Rodney Robinson II
[email protected]