#174 Part 1: Real Estate Syndications in 10 Steps, ft. Peter Kim, MD
In this episode, Dr. Peter Kim dives into the world of real estate syndications. Tune in on the first episode of our two-part series to learn about making the correct deals and getting rewarded for your investment.
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Eckard Enterprises brings this episode to you.
Eckard Enterprises, LLC, is a family-owned and operated alternative investment and asset management firm, specializing in mineral rights and the U.S. energy industry. Eckard believes that owning tangible assets is one of the safest, long-term investment strategies available in today’s investment climate.
Episode Highlights
Now, let’s look at what we discussed in this episode:
- Understanding the structure
- Looking at risks and rewards
- Doing your due diligence
- Examining investment terms
- Review tax implications
- The Physician Real Estate & Entrepreneurship Conference (PIMDCON)
Here’s a breakdown of how this episode unfolds.
Episode Breakdown
Step 1: Understanding the structure
Peter discusses the essence of a real estate syndication, emphasizing its nature as being a group investment. He highlights the importance of understanding the hierarchy, one’s role, and the legal structure.
“Before investing in a syndication, make sure you understand the structure. Know who’s at the top, who are the leaders, who’s the sponsor. Know the company that you’re going to be investing with. And… how is this deal going to be legally structured and organized” — Peter Kim, MD.
Step 2: Looking at risks and rewards
Dr. Kim emphasized the importance of assessing both risks and rewards in syndication investments. He reminds us that as with all ventures, there’s a risk of losing capital, but there’s also potential for significant gains. He stresses the need to evaluate each deal, ensuring it aligns with one’s financial aspirations and risk tolerance.
“I’ll tell you when I first started investing, I used to just look at the rewards. For the most part, I would look at what the potential gains were. And oftentimes, I looked at two deals, and I would compare them to see and understand the potential gains.” — Peter Kim, MD.
Step 3: Doing your due diligence
Peter highlights the importance of doing your due diligence before investing. He advises focusing on the track record of the deal’s sponsor and understanding the property’s financial details. He adds that being part of courses like the Passive Real Estate Academy can help in terms of guidance and having a supportive community for investors.
“I understand how so many of you feel, by the way, that’s one reason we developed Passive Real Estate Academy. It was to help you build the confidence you need to help you make sure that you’re investing in good deals, while trying to avoid a lot of the mistakes.” — Peter Kim, MD.
Step 4: Examining investment terms
Dr. Peter Kim proceeds to the fourth step, checking the investment terms of a deal. This includes understanding the minimum investment, expected returns, and the plan for the property. It’s essential to know these details clearly as it’s your hard-earned money being invested.
“Have absolute clarity when it comes to these investment terms because that is your hard-earned money. You want to know where it’s going and why it’s gonna work out well for you.” — Peter Kim, MD.
Step 5: Review tax implications
Peter narrows in on the fifth and final step, tax benefits and their implications on real estate investments. He shares it can offer passive income and potential tax deductions like depreciation. These tax incentives can protect and enhance your cash flow but still remind us to consult a tax professional to maximize these benefits for your financial goals.
“One of the most powerful things about investing in real estate is taking advantage of all these tax incentives. They can help high-income professionals, like you and me, to shelter some of these gains… but still get cashflow at the end of the day.” — Peter Kim, MD.
Physician Real Estate & Entrepreneurship Conference (PIMDCON)
Dr. Peter Kim closes by inviting everyone to join the Physician Real Estate & Entrepreneurship Conference (PIMDCON) this September 21 – 23, 2023 in Los Angeles, CA. The event is for those who want to learn more about real estate, investing, finances, passive income, entrepreneurship, and more.
“With your virtual ticket. You’re going to have lifetime access to all session recordings post-event. Allowing you to rewatch some of your favorite sessions and continue to learn from our expert speakers. So don’t miss out on this incredible opportunity to gain valuable knowledge and insights. Network with other high-achieving professionals. And take your real estate investing and entrepreneurship game to the next level.” — Dr. Peter Kim
