Most people think real estate investment is simply buying a property using personal equity or mortgages and becoming a landlord. However, there are other, more sophisticated ways to invest in real estate – and one popular option is real estate syndication.

Let’s take a closer look at real estate syndication and how you can get involved in Lexington real estate using a syndication strategy.

Real Estate Syndication and its Benefits

Real estate syndication is an investment strategy in which a group of investors pool their resources and buy larger properties or portfolios together. A professional team then manages the property, and the profits are distributed among the investors.

According to Zillow statistics, median home values in Lexington, KY, increase by 15.9% every year, making it a stable option for investment. According to publicly available data:

• The median home value in Lexington is $266,334

• The average rent for an 865 sq. foot apartment in Lexington is $1,068

• Luxury home values in Lexington range from $2,000,000 to 11,000,000. 

Some of the common benefits include:

• Increased profit

• Increased buying power

• Spreading out the risk associated with the property

• Tax benefits

• Management by a professional team that handles all the day-to-day operations

How Does a Real Estate Syndication Work in Lexington?

1. Find a group of potential investors who are interested in Lexington real estate. Consult with a local real estate agent who may be able to guide you towards the right people.

2. Once you’ve found a few potential properties that all investors agree upon, it’s essential to do your due diligence to ensure that they’re a good fit for your syndicate.

3. Choose a property management company that you trust to manage the property. Expertise.com screened 67 property management companies in Lexington in March 2022 and recommended 12 of them. 

4. Create a syndication agreement that outlines the roles and responsibilities of each party involved in the syndicate. A lawyer will review this agreement to ensure that it’s legal and binding.

5. Rent out your property.

6. Receive a distribution of the profits regularly. 

Learn More About Lexington Real Estate Syndication Investment

If you're looking for an investment opportunity in Lexington, and want to get in on real estate syndication, give us a call at 859-797-4007. We'll be happy to answer any questions you have and help you get started!