PASSIVE INVESTING
If you are a passive investor looking at investing in real estate syndication deals then you’ve come to the right place!
Real estate syndication deals can be a great way for passive investors to diversify their investment portfolio with reliable and consistent cash-flow streams and equity build up over time that is not correlated with the stock market.
Among many other benefits, investors also get to take advantage of significant tax breaks which make this type of investment even more lucrative!
The sole purpose of this page is to provide valuable resources and information needed to make informed decisions when passively investing in real estate syndication deals.
Through hundreds of investor conversations the information below was created to help educate investors on the most import aspects of passive investing in large syndicated deals.
This page is designed to help you understand more about real estate syndication and the many benefits that come by passively investing in them. I’ve also provided an overview of the top 3 recession-resilient assets classes (value-add multifamily, RV parks and manufactured home parks) that we invest in and believe provide the greatest opportunities for tax-efficient passive income and long term wealth building.
Real estate syndication is an effective way for a syndicator/sponsor and a group of investors to pool their financial and intellectual resources together to invest in properties and projects much bigger than they could afford or manage on their own. Over 90% of large multifamily purchases are made through syndication.
The parties at the forefront of a syndication deal include the sponsor (also referred to as the general partner, operator, or syndicator), the limited partners (or passive investors) and the property management team. There are plenty of other team members involved that make the deal work behind closed doors, including, but not limited to, a commercial broker, a team of attorneys, CPAs, and lenders.
SYNDICATOR
The sponsor/syndicator is the person who initiates the real estate syndication; they are responsible for identifying the market, underwriting the property, securing financing, overseeing the business plan/renovations and the daily activity of the property management company, ensuring strong investor relations, and managing the asset it general.
INVESTOR
The limited partner, or investor, is the individual (or group of individuals) that provides the equity to fund the deal. The role of investors in real estate syndication is very simple: they invest their money in a real estate project that is run and managed by the syndicator, and they earn a percentage of the project’s profits based on a predetermined and agreed upon rate that is split between all investors and the syndicator.
