Are real estate syndications dead? Some multifamily syndicators are making capital calls and hiding information from investors who anxiously wait (and pray) for their money to be returned. A lot is going wrong, so should you pause investing in real estate syndications for now, or should you write them off entirely? Brian Burke, who saw it coming and sold almost everything before prices fell, is on today to give us his answer.

Joining him is a fellow syndication investor and BiggerPockets CEO, Scott Trench, who’s had his fair share of syndication headaches over the past few years. We’re going back in time, talking about what exactly went wrong for multifamily syndications, why we saw a rise in untrustworthy/inexperienced syndicators entering the market, and why multifamily specifically is taking the majority of the headwinds.

We’re also sharing the numbers on the almost unbelievable amount of multifamily investors who have short-term loans coming due, all at a time when interest rates are still high and values are close to (if not at) the bottom. We’ll even talk about our own failed deals and whether or not we’d continue investing in syndications.

In This Episode We Cover

Real estate syndications, general partners, and limited partners explained

Why the multifamily real estate market is a “traffic collision” in 2024

Areas of the country with the highest/lowest risk for real estate syndications

The astonishing amount of distressed investors with short-term loans coming due

Our own failed investments and whether we’d still invest in syndications

When multifamily real estate investments could finally rebound and become investable again

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Find Investor-Friendly Lenders

See Dave and Scott at BPCON2024 in Cancun!

Dave's BiggerPockets Profile

Scott's BiggerPockets Profile

Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why

PassivePockets

Brian's BiggerPockets Profile

Grab Brian's Book, “The Hands-Off Investor”

Jump to topic:

00:00 Intro 

01:38 Real Estate Syndications Explained

11:11 Things Have Changed 

19:07 Multifamily is a “Traffic Collision”

24:29 WHERE to Invest

29:20 Underwater Syndications

38:23 Are Syndications Dead?

Check out more resources from this show on BiggerPockets.com and  https://www.biggerpockets.com/blog/on-the-market-256

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