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As the partner for EstateSyndicate.com, the largest investment syndicate in the Midwest, I have seen many definitions of what syndicators are but none have defined it clearly in a short succinct explanation. So here you go.

A investment syndicate is a associationof people that have put together their assets for a common purpose.
Next we have to talk about what it is they put together. There are both monetary and human capital assets. So let’s assemble a hypothetical syndicate as an example.

In order to get deals done on a more massive scale we need a number of types of human capital. Here’s a list:

* Real Estate Professional – this is the person who has expertise in deals. He or she understands how to make transactions work. This real estate professional should know about types of deeds and financing options, short sales, foreclosure deals, trusts, how to flip contracts, how to set up a REIT or put together an LLC for real estate investing, options and how to do rent to own transactions. This is more than a real estate agent because this agent should have practical experience in doing deals not just selling properties.

* Money Supplier – This could be a mortgage broker or a hard money lender or a person that can put together a supply of advance a transaction. This person should have knowledge of underwriting, putting together loan documents, lender application forms and processes,and have a ready supply of money that is available in two or three days to do cash deals. A bank is not a money supplier – they take way too long.

* Marketer – This person has not only unique skills in promotion but also has the pieces in place in order to generate lists of buyers, sellers, investors, and money lenders. If your syndicate has a decent marketer in place your partnership will inevitably be successful because you will have a constant flow of buyers, sellers, and money lenders entering your fold. Most real estate agents don’t know how to market and that’s why they are hardly making any money. Realtors are notorious for “no marketing knowledge” and that’s why houses are sitting on the market so long. (the state of the economy matters very little.

* Lawyer – this professional is very useful on an “as needed” basis. Occasionally your syndicate will need unique contracts, partnership documents and legal advice about setting up investment entities. Your investment syndicate should have your own “boiler-plate” docs ready to go so a lawyer isn’t needed except on demand. You should have a prearranged relationship with this professional so they know they are your “go to” guy and treat you accordingly.

* Accountant – The ideal strategy of every endeavor is not the money coming in the door but rather how much of it you get to hold on to. Taxation and entity structure can make a big difference in the final outcome so an accountant can be an invaluable asset in the group. Find someone that is really competent in real estate taxation and entity structuring for tax advantages to insure your greatest return.
* Closer – If you plan on doing regular closings a closer can be worth their weight in gold to get all the ‘i’s dotted and the ‘t’s crossed and knows the laws and requirements to complete lending and title documents and most importantly how to legally distribute the money.

In this mix of experts the real estate professional is the person most likely to be the syndicator because he’s the one intimate with the whole undertaking most often.

There you have it – a full blown investment syndicate.