145 | Turnkey Real Estate Investing and How to Build a Team With Paula Pant

Overview

Paula Pant provides a comprehensive overview of deal syndication, comparing it to mutual funds in the stock market. She explains that while deal syndication might seem like a safe investment due to the bandwagon effect, it requires careful consideration of the fund manager's track record and the specific property involved 1. Jonathan Mendosa highlights the importance of understanding the real estate market from both a buyer's and seller's perspective, emphasizing the significance of well-crafted property listings 2.

On the surface, this might feel safe because there's safety in numbers. And look, if everybody else is doing it, then the bandwagon effect says that I'm making a good decision.

--- Paula Pant

Paula stresses that investing in deal syndication is not a shortcut to avoiding due diligence, as concentration risk remains a factor.

   

Due Diligence

Ensuring proper due diligence in deal syndications is crucial, as Paula Pant advises against relying solely on information from the selling company. Instead, she recommends hiring independent inspectors and contractors to assess properties, even if it incurs additional costs 3. Paula likens this process to choosing a fund manager for a mutual fund, where thorough research is essential to mitigate risks 1.

I would independently hire a licensed home inspector to go to that home and do an independent inspection.

--- Paula Pant

Jonathan Mendosa acknowledges that due diligence in deal syndication could be an extensive topic, suggesting it might warrant further exploration in future discussions.