Differences between Managed Syndicates and Real Estate Crowdfunding

In the last article we saw what a Syndication is. A Syndicate is essentially a bunch of people pooling resources which include time, money, effort and expertise towards a real estate project. The challenges in a Syndicate are really the lack of strong legal structures and professional expertise which sees a lot of adhoc syndicates develop problems.

A Managed Syndicate addresses some of the biggest issues which an adhoc Syndicate suffers from. First, a professional manager and property team picks the right opportunity and offerings are typically made under the back of a strong legal structures. These opportunities are typically but not limited to Commercial real estate. Examples include Petrol station dealerships, shopping malls, warehouses etc. The money is pooled from many investors and then the professional team puts the funds to use on the specific project for which the funds were raised for.

Quite a few Managed Syndicates have delivered strong returns due to their focused and professional management teams. However the big issue with Managed Syndicates is that their typical minimum investment is 100K AUD and above (preferably much above). This pretty much locks out all the smaller investors. So a managed syndicate is a great way to invest, if you can access it (read are rich enough).

That's where a crowdfunding platform like estatebaron.com comes in. It has all the benefits of a Managed Syndicate which includes professional management and choice of investment but the minimum starts from as low as $2000. Think of the era when cars were expensive and were only the playthings of the rich. Then Henry Ford and his Model T came along and suddenly cars became affordable and within the reach of the common man.

That's what we at estatebaron.com are doing. We are making the best real estate development opportunities which were solely reserved for the bigshots now available to the common man. We are making the world a little bit more ... equal.