b'3. SELECT YOUR BUSINESS MODEL SUITABLE INVESTMENTSSuitable investments for syndication generally include investments in any property type or company assets that will yield a sufficient profit to offer a return on investors capital contributions. The returns may be gen-erated by cash flow during ownership and operation of the asset, from increased value of the asset generated from resale, or from registering the company and selling shares in the company to the public. In todays real estate market, cash flow is the biggest draw for investors, followed by potential equity on resale. For startup companies, investors are usually hoping for a share of profits generated by taking the company public, or from selling the company to a bigger company.Institutional loans are an important aspect of many investments. In-stitutional loans generally offer lower interest rates than the returns in-vestors are seeking. Using a lower-interest-rate institutional loan, even if only on a portion of the funds needed, will create higher earnings. This is called leverage. Traditional institutional lenders typically include banks and insurance companies.Individual investors in real estate transactions are generally looking for 5% to 10% returns from cash flow, plus an equity kicker at some future date, such as a refinance or sale of an asset. Investors in startup companies often try to gauge the ultimate selling price and are willing to wait for the big payout at the end.Private equity funds, family offices, pension funds, angel investors and venture capitalists are some other sources of equity for certain compa-nies. They will usually infuse a much larger share of the capital required or may take the place of an institutional lender. Such investors will typically want much higher returns than individual investors, and perhaps a management role or takeover rights. 21'