More property investors are considering Syndicate Investing which allows part ownership of larger investments – typically commercial or industrial.

This type of investing allows smaller investors to invest in larger properties that they would not normally be able to take part in.  But there are some important considerations – not the least of which is that you will be investing with others who you don’t know and may never meet.

Here are some points you should consider.

Is there an Information Memorandum and is the investment group licensed by ASIC.

What is the fund manager charging in terms of upfront fees, ongoing fees and management fees.

The income is obviously key, who are the tenants, how strong are they and what is the lease expiry profile of the tenancies. This is critical in determining the risk and ensuring no further calls for capital.

What is the exit, is the syndicate going to be a long term hold or a repositioning and sell. This is very important as investors need to know how long they are committing their capital for.

Make sure you check with your accountant because while syndicate investing has lots of upside there are some traps for new players.