REI Wealth Magazine Featuring Paul Finck | Page 90
BRUCE KELLOGG
Bruce Kellogg has
been a Realtor®
and investor for 38
years. He has
transacted about
800 properties in 12
California counties.
These include 14 units, 5+ apartments,
offices, mixeduse buildings, land, lots,
mobile homes, cabins, and churches.
Mr. Kellogg is a contributor and copy
editor for two national real estate wealth
building magazines: Realty411, and REI
Wealth Monthly. He is a recipient of an
The Syndicator’s “Flip”
Albert Nelson Marquis Lifetime
Achievement Award, listed in Who’s Who in America – 2019.
Enhanced Diligence requires that you research the
He is available for consulting with syndication, turnkey,
property’s history. To do this, contact the Customer
Service department at a major title company at the location jointventure, and other property purchasers and note
investors nationally, and other consulting assignments. Reach
of the property. Ask for “a Property Profile” that has
him at [email protected], or (408) 4890131.
transactions going back 10 years. Usually, this will be
provided at no cost. Look it over to see if the promoter
already owns the property that they are trying to syndicate.
If so, they are trying to do “a Syndicator’s Flip” as their
exit strategy from ownership of the property. Usually, they
will build in a nice profit for themselves upfront such that
the investors pay retail or above. Then, since the promoter
has their profit, they usually go on to neglect the
syndication. Is this common? Not so much. But it happens,
and you need to guard against it. Is it legal? Good
question! Don’t bother to find out!
Conclusion
Many syndication investors take the easy path by
reading the promoter’s Offering Circular, maybe seeking
an advisor’s opinion, then wiring funds or writing a check.
This is nowhere near enough! They need to go beyond
even “due diligence” to Enhanced Diligence. This article
equips investors to do that.
Good Luck!
NOTE: The author is available for Enhanced Diligence of
Syndications, Turnkeys, Joint Ventures, and other
investment acquisitions of most kinds. Compensation is
based on an hourly rate.
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