“Real estate cannot be lost or stolen,
nor can it be carried away. Purchased with
common sense, paid for in full, and managed
with reasonable care, it is about the
safest investment in the world.”
-Franklin D. Roosevelt
Who’s Involved In Real Estate Syndications?
There are two key players in any real estate syndication investment: the syndicator(s) and the passive investors.
The Real Estate Syndicator
Real estate syndicators, also referred to as general partners (GPs), are responsible for structuring and operating the real estate syndication. Primary duties of the general partner(s) would consist of:
• Underwriting the deal.
• Completing thorough due diligence on the property.
• Arranging the financing.
• Negotiating with the seller.
• Building a business plan.
• Finding investors.
• Raising capital for the transaction.
• Working with the property management team.
• Asset management.
• Handling investor relations.
As you can see, a real estate syndicator handles everything from finding the property, arranging the transaction and operating the asset upon closing. The syndicator’s role is to execute the business plan and deliver strong returns to the passive investors in the real estate syndication.
The Passive Real Estate Investor
The passive investor’s role in the real estate syndication is to provide a portion of the capital needed to acquire the property. In exchange, passive investors receive ownership shares of the property.
By owning a piece of the real estate property, passive investors receive monthly (or quarterly) passive income distributions from the asset, as well as a return on their investment upon selling it — all while achieving equity pay down, appreciation and real estate tax benefits.
The Benefits Of Real Estate Syndications
There are various benefits of opting for a real estate syndication investment. Below are the ones I find most compelling.
• Passive Income: Investors can earn monthly or quarterly passive income distributions from their investments.
• Hassle-Free: Investors can invest in real estate without the hassles of managing tenants or toilets.
• Tax Benefits: By owning a piece of the real estate, tax benefits are passed down to investors through their K-1 tax filings.
• Appreciation: Like any piece of real estate, the value of the property should gradually increase over time, increasing the return on investment (ROI).
• Control: Unlike real estate investment trusts (REITs) or crowdfunding platforms, investors can choose which specific properties they want to invest in.
• Diversification: Investors can spread their capital across multiple real estate syndications
Interested in learning more about how you can get involved in Real Estate investments?
Simply fill out the form below.
We will share some projects that are a fit based on your qualifications and interests.
Interested in learning more about how you can get involved in
Real Estate investments?
Simply fill out the form below.
We will share some projects that are a fit based on your
qualifications and interests.