A real estate syndication is a collective investment strategy in which multiple investors pool their financial resources and expertise to acquire, develop, or manage real estate properties that would typically be too large or costly for any single investor to undertake alone. The main goal of a real estate syndication is to leverage the combined capital and knowledge of the investors to pursue larger and potentially more profitable real estate ventures.

In most large multifamily investment opportunities, the property is owned by a “Company Name” entity for which that property is the only asset, which reduces liability. Investors are a direct shareholder in this business entity, meaning they are a part owner of the LLC that owns the property. This allows for a direct flow-through of cash flow, tax benefits, and upon sale of the asset, allows investors to participate in the equity growth during the hold period.

A variety of opportunities will be available to both accredited and sophisticated investors. However, qualifications are deal dependent. To stay up to date on current opportunities, join our Investor Club. After you join, we’ll connect to learn more about you and your investing goals. Once we have connected, we can begin to share future investment opportunities with you.

To qualify as an accredited investor, an individual must meet one of the following requirements:

• • 1. Have an individual income of over $200,000 per year, or a joint income of $300,000 with a spouse, for each of the past two years, with a reasonable expectation to maintain the same income level in the future.
  • 2. Possess a net worth exceeding $1,000,000, either individually or jointly with a spouse, excluding the equity in their primary residence.

A sophisticated investor is an individual who, while not necessarily meeting the specific financial criteria of an accredited investor, possesses a sufficient understanding and experience in financial and business matters. This knowledge allows them to evaluate the merits, risks, and suitability of a prospective real estate investment.

A general partner is typically responsible for the day-to-day management, decision-making, and operations of a real estate syndication. They bring expertise, secure the property, obtain financing, and manage the investment throughout its lifecycle. GPs usually assume most of the legal and financial risks associated with the project.

Limited partners are passive investors who contribute capital to the syndication but do not participate in the daily management or decision-making processes. Their liability is limited to the amount of their investment. LPs primarily seek a return on their investment without the responsibilities of property management.

Minimums vary from deal to deal but generally are set at $50K with preference given to investors with more to invest.

Investor distributions vary from deal to deal but most syndications make quarterly distributions. Funds are distributed via direct deposit.

As a limited partner, you will benefit from your portion of the investment’s deductions for property taxes, loan interest, depreciation, etc. At times, we will also use a cost segregation strategy to accelerate depreciation. The tax loss can then be used to offset other income depending upon your individual tax situation. At the time of sale, the partnership gains are treated as long-term capital gains. For a comprehensive understanding of how investing in a real estate syndication may affect your taxes and to ensure the most beneficial tax outcomes, we strongly advise consulting with a qualified tax professional tailored to your specific circumstances. 

Yes, you can invest in a real estate syndication using a retirement account by utilizing a Self-Directed IRA (SDIRA). To do this, you’ll need to open an SDIRA with a custodian such as such as American IRA, Directed IRA, or Vantage IRA that allows real estate investments. Once your account is set up and funded – either through a rollover from an existing retirement account or through new contributions – you can select a real estate syndication to invest in. Your custodian will help facilitate the investment by ensuring that all transactions are completed in the name of your SDIRA.

Our investor relation’s team will provide monthly or quarterly email updates on the investment’s progress including renovation status/pictures, rents received, and distribution amount for the period. You will also receive a K-1 statement each year for your tax filing.

You can get started by joining our Investor Club. From there we will schedule a call to discuss your investing goals and where you are currently at on your financial journey.