055 | Syndication Consternation

Not every investment goes according to plan! Yes, every worthy investment comes with a certain level of risk. Not every investment will be a home run. Not every investment will hit projections. We've sung the praises of real estate syndications time and again, but they aren't as foolproof as we thought! It didn't help that the COVID cascade - excessive "printing" of currency leading to excessive rates of inflation - caused the adjustable-rate mortgages (which are very common in commercial/multifamily financing) on many of our syndications to shoot through the roof. The absurd rise in rates wasn't predicted by anyone, and it bit us in the ass. Although property values and our associated capital has appreciated, cash flow distributions have not hit the mark. Now, we still believe the syndication model is a solid path to financial freedom. But with anything, proceed with caution and always do your due diligence. Tune in to hear our lessons learned!