Syndication is simply a pooling of resources to invest in something as a group.

A real estate syndication allows passive investors (known as “Limited Partners” or “LPs”) to invest in a project that is larger than they would be able to purchase as individuals.

Passive investors don’t do any of the work to manage the project. Sponsors (also known as general partners or GPs) are responsible for the day-to-day operations of the property. End-to-end, the project will be run by our sponsors, who have decades of combined experience.

A passive investor invests his or her money, then sits back and earns returns. You reap the financial benefits of real estate investment without the time commitment and hard work. – no need to worry about tenants, termites, or toilets. All that is taken care of by our team, and we provide regular updates as the project is progressing.

Most projects plan for a 5-6 year hold, so you should plan to have your money in the investment for that amount of time. Cashflow returns will be received during this period, but your initial investment cannot be withdrawn.

However, we understand that five years is a long time, and life happens. If a major life event happens, we will do everything in our power to help you get out of the investment, including buying out your shares if necessary.

While exact percentages may vary from investment to investment, types of returns remain the same. The cash on cash return is paid out throughout the lifecycle of each investment. At the end of the project, you will also receive a portion of the proceeds from the sale of the asset.

The property will be a limited liability company owned by you, which comes with all the benefits like depreciation and cash flow, meaning that the property will be owned by a property LLC whose only asset is the property (reducing liability). Therefore, in essence, you own part of the company that owns the property through your shareholding in the Property LLC. By doing this, you can record cash flows and depreciation directly through the asset and realize long term capital gains upon sale.

Yes. It is not necessary for you to be an accredited investor, but accredited investors are welcome.

Even though multifamily properties are among the most risk-free investments you can make, every investment has a certain amount of risk involved. By buying below market value, we are able to increase income and reduce expenses while reducing risk. Most strategies are pretty straightforward, so success relies largely on the ability to execute them effectively. As part of our management, our team oversees the property manager, ensuring all is being done as planned.

A few types of commercial real estate such as apartment buildings and self-storage facilities operate independently from the stock market. As a matter of fact, they fare considerably better in recessions, as more and more people tend to downsize. Additionally, multifamily buildings are also safer investments than single family homes, since even if one tenant moves out, it won’t affect the others who will pay down the mortgage.

Every project is controlled to the greatest extent possible to minimize risk, and when anything unexpected occurs, we notify you immediately and work  to resolve issues as promptly as possible.

The safety of your investment is the #1 priority for us.

In a down market, we won’t want to sell. In this case, the goal would be to continue paying the preferred return until the market improves to achieve a higher sale price. A class B/C value add property typically holds up better in a recession because people need a place to stay and the rents are in line with the market / service economy demographic that is most often still employed during recessions as opposed to the class A renter earning +$100K, and are at greater risk of losing their jobs.

We structure most of our deals with a 7-8% preferred return. It means that the first 7-8% of a return (distributions from cash flow or capital events like refinancing proceeds or sales) will go entirely to the limited partners, and nothing to the general partners. Aside from the fact that there are no guarantees in any investment, this is the next best thing out there.

No. Property investments are by nature more long-term than stocks and bonds.

Wire transfers or checks can be sent directly into the fund’s subscription account. Funds are generally held in an escrow account in the LLC’s name until the property is closed. The GP team never takes possession of your money.

Yes. Any of those sources can work for investment capital.

Yes. You can click on the “webinar” button to sign up for our next live webinar and the replay.

It is important to note that the soft reserve simply holds a space for you in the deal and does not lock you in. There’s no penalty for backing out if you decide later that you’ve changed your mind. Nevertheless, you should know that if you want to increase your investment down the road there may not be room for that extra amount. When in doubt, reserve an amount now, review all materials, and adjust down later if necessary.