There are several factors you should consider before investing in a property syndication:

1. Location

One of the most important factors in a property syndication is the location of the building because it plays a role in attracting tenants. Investors must realise that they invest not only in the bricks and mortar of the building, but also in the leases that have been signed by the various tenants.

2. The tenant profile

This is very important and the mix of a property should complement the various businesses. All the relevant information that investors should have before making an investment into a syndication should be contained in a prospectus.

3. Viability assessment

Before investing, you should check whether the marketing company has assessed the viability of the building and its tenants. You should also find out who you are handing your money over to before the building is bought.

4. Receiving your share certificate

Generally, syndications hold their money in a trust account which is managed by a firm of attorneys. Once the building is transferred into the name of the syndication company, you should receive your share certificate.

5. The management of the building

After the property has been fully subscribed, the management of the building is an important factor to consider before investing. Some companies dump the management function into the laps of the shareholders. Most syndicates undertake the administration of the buildings, in conjunction with professional property managers.