Episode•September 14, 2023•18 min

How to Get Higher Returns with Real Estate Syndication | Ep. 263

Are you looking to get more from your investments? Real estate syndication may be the way! Tiffany Grant and Stephanie Walter discuss the ins and outs of this lucrative investing opportunity. Learn how the JOBS Act of 2012 changed syndication in a big way, plus discover what qualifications you need to be an accredited investor. Plus get insider tips from Stephanie on researching a location before investing, and learn all about her new book "Shattering Money Myths". Discover why real estate syndication can provide higher returns than REITs - listen now! To enter the book giveaway visit: https://moneytalkwitht.com/giveaways/ About Our Guest Stephanie Walter is a legacy cash flow specialist, capital raiser, syndicator, real estate investor and the CEO of ERBE Wealth. Prior to founding her investment group, Stephanie followed her dream of being an entrepreneur and started her own insurance agency. It was one of the largest, most highly awarded agencies in Colorado. She recently retired and sold her insurance agency of 16 years by following the key principles she now teaches professionals to use. Over years of working with her investors, Stephanie discovered that the very wealthy view and use money differently than the rest of us; they actively have their money working for them -- sometimes at several places at the same time! Stephanie realized these strategies can be used by anyone, not just the rich. Her passion is teaching people to “unlearn” what most of us have been wired to think about money and re-educating people on attaining wealth that can be passed onto the next generation. My goal is to connect my select group of investors with investment opportunities that I’ve found and vetted to be extremely desirable. And at the end of the day, I’m really looking to help my investors reach their financial goals. Connect With Stephanie Visit her website: https://erbewealth.com Facebook: ERBE Wealth Connect With Tiffany Visit our website: https://moneytalkwitht.com Facebook: Money Talk With Tiff Twitter (X): @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant YouTube: Money Talk With Tiff This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

Apple Podcasts Spotify YouTube Overcast Amazon Music

Key Takeaways

1
Real estate syndication allows investors to pool resources for larger properties with professional management and higher returns (15-20% annually) than REITs.
Investors act as limited partners with no management responsibilities
Professional teams handle due diligence, underwriting, and operations
Monthly reporting and distributions are provided to investors
2
The JOBS Act of 2012 dramatically changed syndication by enabling crowdfunding and opening deals to the general public.
Pre-2012: Only available through prior relationships (friends/family)
Post-2012: Syndicators can market to accredited investors broadly
This democratized access previously limited to wealthy networks
3
Accredited investor status (typically $1M net worth or $200K/$300K income) is required for most 506C syndications.
506B offerings may allow non-accredited investors
506B deals can still offer similar 15-20% returns
Due diligence is essential regardless of structure
4
Location research is critical: evaluate demographics, industry diversity, population growth, and infrastructure plans before investing.
Contact city Economic Development Departments for upcoming developments
Use Wikipedia and public data for demographics and growth projections
Avoid markets dependent on a single industry
5
Wealthy individuals treat money as an active employee focused on utilization rather than passive accumulation.
Focus on tangible assets like real estate and businesses
Minimize fees (e.g., in 401(k)s) to potentially save years of work
Maintain control over investments rather than relying on market swings

Intro

Tiffany Grant explores real estate syndication as an alternative investment strategy with Stephanie Walter, who shares how the JOBS Act transformed access and why syndication can outperform traditional options.
Stephanie Walter is CEO of ERBE Wealth, a legacy cash flow specialist, capital raiser, and syndicator. She previously built and sold a successful insurance agency in Colorado by applying the wealth principles she now teaches.

ERBE Wealth ERBE Wealth Facebook

– What Is Real Estate Syndication?

Stephanie defines syndication as a group investment in larger real estate assets managed by professionals, with investors as limited partners receiving monthly distributions and returns typically between 15-20% annually.

Usually the returns are much better than anything like a REIT... between 15 and 20 percent a year.
– Stephanie Walter

– How the JOBS Act Changed Everything

Prior to 2012, syndication required a documented prior relationship, limiting it to wealthy circles. The JOBS Act enabled crowdfunding, allowing syndicators to market to the general public and accredited investors broadly.

It released us to go out and talk to the general public... about this type of investing.
– Stephanie Walter

– Accredited Investor Requirements

Most syndications use 506C offerings requiring accredited investors ($1M net worth or $200K individual/$300K joint income). 506B deals may allow non-accredited investors but still require due diligence.

– Risks and Market Considerations

COVID highlighted location risks—some markets suffered when tenants couldn't pay rent. Florida multifamily held up better due to state policies. Track records, market expertise, and industry diversity are essential.

It's really important to have a group of people that can show you their track record of success.
– Stephanie Walter

– How to Research Markets

Use Wikipedia for demographics and growth data. Call city Economic Development Departments to learn about new companies, infrastructure, and parks. Diversified industries and projected population growth are key signals.

– Shattering Money Myths

Stephanie's book explains how wealthy people view money as an employee focused on utilization—investing in tangible assets with control—rather than passive accumulation in high-fee vehicles like 401(k)s.

92% of people that have a 401k think they're not being charged any fees. And quite often these fees are really significant.
– Stephanie Walter

Books Mentioned

Shattering Money Myths by Stephanie Walter

Resources

Topics

real estate syndicationaccredited investorJOBS Act 2012passive investingmultifamily real estatemarket researchwealth mindsetalternative investmentscapital raisingfinancial education