FAQ
A real estate syndication is a partnership between several investors to tackle a real estate project. The investors combine their capital and resources to purchase a property that they wouldn’t be able to purchase individually. In short, real estate syndication is just a fancy way of saying “real estate partnership.”
Historically, there is less risk and better returns with real estate investments than with stocks and bonds, decreasing homeownership, increasing overall population, and an increase in renters and decrease in apartment vacancy rates.
We provide a Schedule K-1 tax form at the beginning of the year. As for tax benefits, consult with your accountant for specifics. Generally, depreciation will be greater than the distributions paid out that year, which will result in a paper loss. In many cases, this paper loss can be used to offset other investments or even personal income during tax time.
Typically, distributions will be paid on a quarterly basis.
No. We do not guarantee any returns. As with any investment there is risk in real estate.
This depends on each specific project. Typically it will be less than 10 years.
You can invest if your funds are in a self-directed account such as a Self-Directed Individual Retirement Account (SDIRA). Be sure to consult with your accountant.
We will notify all investors on our private email list at the same time when we have a new opportunity. At that point, commitments are at a first come, first serve basis.
When conservatively underwriting a deal, we will include an operating budget and contingency budget to cover unexpected dips in occupancy, as well as higher than projected renovation and operating expenses, and lower than expected rent premiums.
To mitigate risks, we buy for cash flow, secure long-term debt, and have adequate cash reserves.
Generally, the asset is owned by an LLC set up by the general partnership, and the investors buy shares of the LLC.
The asset will be managed by a property management company that has a proven track record.
Our team is responsible for finding deals, reviewing and qualifying deals, making and negotiating offers, coordinating with professional property inspectors, finding the best financing options, coordinating with attorneys to create the LLC and partnership agreements, traveling to the subject property’s market to perform due diligence and market research, hiring and overseeing the property management company, and performing additional asset management duties, including lender conversations, overseeing the business plan, and ongoing investor communication.
The investor’s sole responsibility is funding the deal.
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