Real Estate Syndications – How To Tell If They Are Right For You

Real Estate Syndications -
How To Tell If They Are Right For You

So you’ve been devouring all the information possible and have become enamored with the power of passively investing in real estate syndications. How could you not?!

The ability to invest in real, physical assets without the hassle of being a landlord, getting a share of the majority returns, and reaping amazing tax benefits is pretty irresistible. Plus, the diversification opportunities with minimal legwork while making an impact on local communities just about seals the deal.

Even though these traits seem impossible to pass up, real estate syndications aren’t for everyone. Each investor is in a different stage of life, has a different level of risk tolerance, and maintains different goals.

Before investing in a real estate syndication, see if one or more of the below describes you and your current situation.

#1 You Have More Than $50K of “Play” Money

While there are some real estate investment platforms that will accept smaller investment amounts, most private real estate syndications begin at a minimum investment of $50,000.

You want to make sure you have the minimum investment of $50,000, plus your standard emergency fund, plus any other savings for your life’s aspirations. Think about it – a new car, fluffy retirement savings, this year’s vacation to Cabo, and college education funds, to list a few.

Of course, there are lots of contingencies in place in syndications, but they are an investment and as such, come with risks. And just as with any investment, if you aren’t prepared to lose your investment in its entirety and be okay financially, then syndications may not be your jam…yet. You may want to head back to the drawing board with some serious savings plans and re-visit real estate syndications down the road once you have any key needs covered..

On the other hand, if you have your potential cash-needing scenarios covered with savings, by all means, invest with confidence!

#2 You’re Okay Having Someone Else Take the Reins

If you’re short on time, but heavy on cash, and want someone else (a professional team) to manage the property while you reap the rewards, you’ve found the right investment.

Passive investing in real estate syndications is much less hands-on than your typical residential real estate rental property, in fact, you’ll probably never see the property in person and won’t be involved in any day-to-day decisions.

You don’t have to be in contact with the broker, monitor the property manager’s performance, or receive and decipher between contractors’ bids. Instead, you get a few emails, sign a legal doc or two, and carry on with your life while the checks show up. As a passive investor, you’re a passenger on a plane ride. So, sit back and have a cocktail.

#3 You’re Looking for a Long-Term Investment

Maybe you’ve done your research and know not to look for some get-rich-quick scheme, but rather, are interested in a steady longer-term approach to wealth. Unlike stocks or something you can flip in the two-year range, real estate syndications typically have a hold period for five or more years.

If you’re more of a “set it and forget it” type investor, and can plan for your investment capital to go earn you cash flow and appreciation for set periods of time, then passively investing in real estate syndications may be your new obsession.

#4 Sharing Returns In Exchange for Less Work is Attractive to You

Fix-and-flips and standard rental property approaches to investing allow 100% of the profits in your pocket. Mostly because they are smaller deals, require plenty of sweat-equity, and often have only one party (you) financing and managing the deal. But that also means you are liable for 100% of the expenses – be they in the form of time and/or money!

Multifamily real estate syndications are completely different as there could be tens or even hundreds of individuals involved – thus some profit sharing. Usually, the passive investors get the larger portion of a 70/30 or 80/20 split, with the general partners getting the smaller percentage and also enjoy what’s called a “preferred return”, meaning some amount of the initial returns go to the passive investors before the general partners’ returns kick in.

Group investments like this take a “team” or collaboration mentality versus a competitive mindset. The general partners have done the upfront work to find and secure a deal; are actively managing the property; making any decisions and management toward renovations; and handling marketing and financial reporting. So, it only makes sense that they are compensated for their efforts. If profit sharing and the concept of “a rising tide lifts all boats” makes sense to you, you’re in the right place.

#5 You Don’t Need the Money for a While

It’s possible you’re in a season of life where your kids’ vehicle purchases or college decisions are either several years in front of or behind you, that you’re in a home that doesn’t need a massive kitchen renovation, or just that you have spent some time planning well, establishing some financial surplus, and minding your expenses.

If this is the case, you also likely met the criteria in #1, and you are going to be okay having your money “locked-up” for a bit. You’ve worked hard to save, budget, and build a little nest egg, and you’re just looking for somewhere to park it for a few years with the possibility of earning some interest.

Having expenses covered for the foreseeable future is a fantastic feeling, and if this describes you…well, investing passively in a real estate syndication hopefully captures your interest even more after realizing how well-positioned you are for this type of investment opportunity.

Recap

You’ll absolutely love being able to invest your money in real estate without the hassles of being a landlord, all while having the chance to invest with different sponsors in different markets and different asset classes. And bonus – the tax benefits and returns from passive investing can surpass those from personal rental properties.

But, being a passive investor isn’t for everyone. So, if you…

Have more than $50k of “play” money
Are okay earning returns while NOT having an active role
Are good with a longer-term investment
Find collaboration and sharing big returns attractive
Are comfortable putting your cash to work for 5+ years

…then investing passively in real estate syndications likely could be the best fit for you.

The beauty of real estate investing is that it’s so incredibly diverse. Perhaps some of the above doesn’t describe you and you’d rather roll up your sleeves and do the work yourself. Or perhaps you’re looking for a more liquid or a shorter-term investment. That’s totally okay. Life is not “one size fits all”.

There are so many opportunities out there to invest in great projects and impact local communities. Commercial real estate syndications are just one avenue, but if you meet a few of the criteria above, you might have found your match.

And if that’s the case or you’d like to explore more, then make sure you’ve signed up for our Deaton Equity Partners Passive Income Investor’s Group and check out our Resources section as well as YouTube and social channels. We’re committed to bringing as much great passive income investing content to our community and give them the tools to fuel life’s adventures!

Until next time, we’ll see you on the path to Passive Income…for life!

Taxes – What You Need to Know

Taxes & Syndications

7 Eye-Opening Things Every Passive Real Estate Investor Should Know

If you’re like me, well at least the OLD me, one of the last things you think about when making a new investment is taxes. It’s so much easier to think about all the potential luxury vacations you’ll take and the new cars you’ll buy, than to think about the taxes you’ll be paying.

Well, I’m here to tell you that, when you start out investing in real estate, it’s actually okay that taxes aren’t on your mind. That’s because, unlike when you invest in stocks and mutual funds, investing in real estate tends to make your tax bill lower, not higher.

Yes, you read that right. Investing in real estate can often help lower the amount of taxes you owe, even while you’re making great returns on your investment.

But how is that possible, you ask?

Investing in real estate can often help lower the amount of taxes you owe, even while you’re making great returns on your investment

There’s actually a HUGE difference between the way the IRS views stock market gains and the way they view real estate gains. And that’s exactly what we’ll discuss in this article, specifically from the standpoint of a passive investor in a real estate syndication.

But First, a Disclaimer

Just so you know, I am not a tax professional, nor will I ever seek to become one (those people have really tough jobs). As such, the insights and perspectives provided in this article come from my experience only.

** Always consult with your CPA for more details, and specifics on your exact situation.

Okay, now that that’s out of the way, let’s dive in.

The 7 Things You Should Know about Taxes and Real Estate Investing

Alright, get ready to have your mind blown (as much as the topic of taxes can blow your mind anyway).

Here are seven key concepts I think every passive investor in a real estate syndication should know about taxes:

The tax code favors real estate investors.
As a passive investor, you get all the same tax benefits an active investor gets.
Depreciation is freaking powerful.
Cost segregation is depreciation on steroids.
Capital gains and depreciation recapture are things you should plan for.
1031 exchanges are amazing.
Some people seek real estate investments solely for the tax benefits (like ME!).

Let’s dig in…

#1 – The tax code favors real estate investors

You may have heard that more people become millionaires through investing in real estate than through any other path. Well believe it or not, the tax code plays a big role in that.

Governments around the world recognized the power of using the tax code to shape and guide social direction. If you want more corn, subsidize corn. Fewer smokers…tax tobacco. Carrots and sticks.

One of the primary social needs that the US government wants more of is quality, affordable housing for its inhabitants. And the primary tool they encourage that is through awesome tax benefits for housing providers. As such, the tax code is written to reward real estate investors for investing in real estate, maintaining those properties, and even making upgrades over time (which I’ll explain more about in a moment).

So as a real estate investor, you’re like the IRS’s golden child and they want to reward you for it.

Hey, there are worse things.

#2 – As a passive investor, you get all the same tax benefits an active investor gets

This is a big deal. This means that, even though you’re not actively fixing any toilets, plugging leaks or climbing on any roofs, you still get full tax benefits, whether you’re an active or passive investor.

This is because, as a passive investor in a real estate syndication, you invest in an entity (typically an LLC or LP) that owns the property, and the entire entity is what’s known as a disregarded entity in the eyes of the IRS (sometimes also called “pass-through entities”).

What that means is any of the tax benefits flow right through that entity, to the members of the entity, which is you – the investors.

Note: This is different for investing in REITs. With a REIT, you are investing in a company, not directly in the underlying real estate, and hence you don’t get the same tax benefits.

Common tax benefits from investing in real estate include being able to write off expenses related to the property (including things like repairs, utilities, payroll, and interest), and the biggest benefit – being able to write off the value of the property over time (this is known as depreciation).

Let’s focus in on this beautiful thing called depreciation.

#3 – Depreciation is f-ing powerful!

Depreciation is one of the most powerful wealth building tools in real estate. Period.

Depreciation is the concept that ‘things’ wear down over time. The usage of items, like floors and doors and buildings, leads to wear and tear over time and a “theoretical” loss of value.

Imagine going to the car dealer and buying that brand new Lambo you’ve always wanted. You sit in the sales manager’s office and agree on the bargain price of $199,000. Wanting to show him what a hot-shot investor you are, you whip out your checkbook, sign your John Hancock, and with the flair of an orchestra conductor you rip off that check and hand it over in exchange for the keys to your new mid-life-crisis-mobile. Well after firing up all 12 cylinders and stalling the engine a couple of times, those tires screech off the lot and onto the pot-hole filled street. And now that those tires have hit the street, your $199,000 purchase is worth about $145,000 on resale – and that’s before any wear-and-tear! Depreciation baby!!

So Why the Heck is Depreciation So Magical?

Let’s use a simpler example relative to the world of business; so, let’s imagine you just bought a new laptop. On day one, that laptop works great – fast, powerful and bright. Over time, however, the keyboard gets sticky, the processor slows down, and the battery barely lasts more than a few minutes. Eventually, the whole thing will go kaput and this technological marvel will be worth very little, if anything. This is the essence of depreciation.

Essentially this is the same as with a multifamily property. The IRS is acknowledging that, if the property is used day in and day out, and if you do nothing to improve the property, that over time, the property will succumb to natural wear and tear, and at a certain point in the future, the property will become uninhabitable (just like when that laptop eventually dies).

As you can imagine, every “thing”, or asset, has a different lifespan. You wouldn’t expect a laptop to last more than a few years. On the flip side, you would expect a house to still be standing several years, or even decades, later.

For residential real estate, the IRS allows you to write off the value of the property over 27.5 years.

Note: Only the property itself is eligible for depreciation benefits, not the land. The IRS is smart enough to realize that the land will still be there in 27.5 years and will still be worth the same, or more.

Here’s an example:

Let’s say you purchased a property for $1,000,000. We determine the land is worth $175,000, and the building is worth $825,000.

With the most basic form of depreciation, known as straight-line depreciation, you can write off an equal amount of that $825,000 every year for 27.5 years. That means that each year, you can write off $30,000 due to depreciation ($30,000 x 27.5 years = $825,000).

The reason that this is such a big deal is this. Imagine in that first year that you make $5,000 in cash-on-cash returns (i.e., cash flow) on that property. Well, instead of paying taxes on that $5,000, you get to keep it, tax-free.

Wait. What? Really?

Yes, really.*

*Disclaimer: This depends on your individual tax situation. Please consult your CPA.

That $30,000 in depreciation means that, on paper at least, you lost money, while in reality, you made $5,000.

Plus, as an additional benefit, properties acquired after September 27, 2017, are eligible for what’s called bonus depreciation, which allow owners to stack up the majority of the depreciation costs into the first year, which can really amp up the tax benefits.

This is why depreciation is f-ing powerful!

#4 – Cost segregation is depreciation on steroids

But wait, there’s more!

In the last example, we talked about something called straight-line depreciation, which allows you write off an equal amount of the value of the asset every year for 27.5 years.

But, for most of the real estate syndications we invest in, the hold time is around just five years. So if we were to deduct an equal amount every year for 27.5 years, we’d only get five years of those benefits. We’d be leaving the remaining 22.5 years of depreciation benefits on the table.

This is where cost segregation comes in.

Cost segregation acknowledges the fact that not every asset in the property is created equal. For example, that printer in the back office has a much shorter lifespan than the wood flooring, which has a shorter lifespan that the roof on top of the building.

In a cost segregation study, an engineer evaluates every element of a property and itemizes them, including things like electrical outlets, wiring, windows, carpeting, and fixtures.

Certain items can be depreciated on a shorter timeline – 5, 7, or 15 years – instead of over 27.5 years. This can drastically increase the depreciation benefits in those early years.

Here’s another example:

This is one based on a true story.

A few years ago, real estate syndication group purchased an apartment building in December of that year. That means that the investors only held that asset for one month of that calendar year.

However, due largely to cost segregation, the depreciation schedule was accelerated for many items that were part of the property, including things like landscaping, blinds and carpeting.

The K-1 that was sent out to investors the following spring showed that, if you had invested $100,000 in that real estate syndication, you showed a paper loss of $50,000.

That’s 50% of the original investment…just for owning the property for a single month during that tax year.

And, if you qualify as a real estate professional, that paper loss can apply to the rest of your taxes, including any taxes you owe based on your salary, side hustle, or other investment gains.*

*Again, this depends on your individual situation, so please consult your CPA.

BOOM! Game. Changer.

#5 – Capital gains and depreciation recapture are things you should plan for

You didn’t think that real estate investing would be 100% tax-free, did you?

Unfortunately, the IRS likes to be included in everything.

In real estate investing, the way they get their cut is through capital gains taxes when a real estate asset is sold, and sometimes, through depreciation recapture, depending on the sale price.

In a real estate syndication that holds a property for 5 years, you wouldn’t have to worry about capital gains taxes and depreciation recapture until the asset is sold in year 5.

The specific amount of capital gains and depreciation recapture depends on the length of the hold time, as well as your individual tax bracket.

Here are the brackets and percentages based on the new 2018 tax law:

$0 to $77,220: 0% capital gains tax
$77,221 to $479,000: 15% capital gains tax
More than $479,000: 20% capital gains tax

For more details and the most up-to-date laws and info, I recommend you discuss the specifics with your CPA.

#6 – 1031 exchanges are amazing

I mentioned above that when a real estate asset is sold, capital gains taxes (and often, depreciation recapture) are owed. However, as with many things in the tax code, there’s a way around this. That’s through a special arrangement called a 1031 exchange.

A 1031 exchange allows you to sell one investment property, and, as long as you reinvest within a set amount of time, swap that asset for another like-kind investment property.

Doing so means that, instead of having the profits paid out directly to you, you roll them into the next investment. As a result, you don’t owe any capital gains when the first property is sold.

Not every real estate syndication offers a 1031 exchange as an option. Often, the majority of the investors in a syndication have to agree to a 1031 exchange to make it a possibility, as there are certain reporting requirements and restrictions that come in to play.

Unfortunately, you cannot do a 1031 exchange on just your shares in the real estate syndication. The sponsors must decide to do a 1031 exchange on the whole shebang. It’s all or nothing.

Every sponsor is different and approaches 1031 exchanges differently. So if a 1031 exchange is something you’d be interested in, be sure to ask the sponsor about it directly.

#7 – Some people invest in real estate solely for the tax benefits

The tax benefits of investing in real estate are so powerful that some people (namely, wealthier investors) do so purely for the tax benefits. You see, by investing in real estate, they can take advantage of the significant write-offs, and then apply those to the other taxes they owe, thereby decreasing their overall tax bill.

This is how real estate tycoons can make millions of dollars but owe next to nothing in taxes.

It’s perfectly legal, and it’s a powerful wealth-building strategy. As mentioned earlier, the government uses the tax code to incentivize, and real estate investors and developers are helping the government achieve it targets. And, you don’t have to be wealthy to take advantage of the tax benefits of investing in real estate. The tax code makes the benefits of investing in real estate available to every real estate investor.

Recap

Like I mentioned at the start of this article, you don’t have to worry about taxes when investing in real estate, especially as a passive investor in a real estate syndication. In most cases, you’ll be able to make money via cash-on-cash returns, yet you won’t owe taxes on those returns due to benefits like depreciation.

To recap, here are the seven things I think every real estate investor should know about taxes:

The tax code favors real estate investors.
As a passive investor, you get all the tax benefits an active investor gets.
Depreciation is f-ing powerful.
Cost segregation is depreciation on steroids.
Capital gains and depreciation recapture are things you should plan for.
1031 exchanges are amazing.
Some people invest in real estate solely for the tax benefits.

As a passive investor, you don’t have to “do” anything to take advantage of the tax benefits that come with investing in real estate. That’s one of the benefits of being a passive investor. You don’t have to keep any receipts or itemize repairs. You just get that sweet form, the K-1, every year. Hand it over to your accountant, and that’s it! That’s why we love creating Passive Income…for life!

Be sure to sign up for the Deaton Equity Partners Passive Investor’s Group – it’s free and easy and you’ll get bonus content and access to amazing investment opportunities.

Dissecting the Investor Summary – How to Know a Deal Is Good

Dissecting Investor Summaries

What To Look For And
How To Tell When A Deal Is “Good”

Investment summaries.

I have yet to see one that leads with an intro “this isn’t a very good investment, but we still hope you’ll invest in it because we really like it.” They are all packaged up with slick graphics, colorful charts and punchy lingo. And in a world where our attention is perhaps the most valuable commodity and investment opportunities compete with one another, how could you expect anything less.

However, given that, how are investors supposed to separate the wheat from the chaff, as they say, to take away the essential points and make an informed decision?

And while each investment summary inherently unique (some are image heavy while others more like an economics textbook), they do all target to portray the same fundamental information; and that’s where we can apply focus to pull out those essential details to see and understand the real investment opportunity.

just how are investors supposed to separate the wheat from the chaff?

So if you decide to invest because the investment summary looks pretty, you are putting yourself at risk, especially if you haven’t done proper due diligence on the deal and the team.

Likewise, if you pass on a deal because the investment summary looks like Elon Musk’s tax returns from last year and the material causes your eyes to glaze over, you might be missing out on a great opportunity.

So what exactly should you look for? Good question.

Let’s take a look at a sample investment summary. I’ll walk you through the thought process I go through when I first review an investment summary, so you’ll know what to look for the next time one lands in your inbox.

**Please note: For simplicity’s sake in this example, I’m assuming the summary is a very brief document, rather than a full-blown investment summary, which could be dozens of pages long.

The Investment Summary At A Glance

Even though every investment summary is different, there are some basic elements that are common across all multifamily real estate syndication investment summaries:

Project name (often the name of the apartment complex)
Photos of the property and area
Overview of the submarket
Overview of the investment
Details of the business plan
Projected returns and exit strategies
Detailed numbers and analyses
Team biographies

In a one-page executive summary, you usually get a little bit of each of these elements. It’s a first date. If going forward, you definitely want to get the full investment summary and review all the details as well as ideally attend a webinar to have the opportunity to ask questions.

If this executive summary landed in my inbox, I’d start with a quick read-through.

In skimming this executive summary, here are the things that would jump out at me:

Off-market
Value-add
Reference to a track record
Strong submarket
Proven model
Equity multiple
Unit count

Off-Market

When an asset is acquired off-market, it means that the seller chose not to list the asset publicly. Maybe the seller didn’t want the tenants to know that the building was being sold (this is quite common). Maybe the seller needed to sell within a set timeline. Or maybe the seller already had a buyer in mind.

Regardless, off-market is almost always a good thing. This means the deal sponsor team did not have to compete with other potential buyers on price. Thus, there’s a good chance that the purchase price is low, or at least reasonably below the market value.

Value-Add

A value-add investment is exactly what it sounds like – an asset that presents an opportunity to add value in some way. Maybe the rents are significantly below market rates because the previous owner hasn’t raised rents in 10 years. Maybe the kitchens & fixtures are still from the ’80s and could use some updating. Maybe there’s an opportunity to add some brand-new additional units.

Whatever the case may be, value-add means more control is in the hands of the deal sponsor team. Rather than relying solely on market appreciation, there are things they can do to create additional equity, even if the market stagnates. This is known as forced appreciation.

One of the most common value-add scenarios is one in which the units need to be updated. Let’s say the apartments haven’t been updated in 10 years, and the current rents are $1,000 per month. Even if the team were to stay the course, that $1,000 per unit would still be able to cover the mortgage and fetch a modest profit.

But, who gets excited to make a “modest” profit?

Because there’s a chance to add value through improved living conditions, as well as increase the returns for investors, this is a true value-add. The team will go in, complete the renovations, then rent out the updated units for, let’s say, $1,200 per month.

When you add up the $200 per month increases across all 250 units, that creates so much value for all parties involved. When residents see the updated spaces, they’re often happy to pay slightly higher rents for a nicer home and they start to take more pride in their community. For the investors, they get to share in a tremendous amount of increased equity from those improvements.

Property values for commercial real estate are driven by income. That extra $200 across 250 units across 12 months amounts to an additional $600,000 in revenue! Not bad at all. And the kicker? That increased revenue multiplies the property value with a constant known as the cap rate. Cap rates fluctuate by market, but even if we use one that’s very conservate, like 10% (easy math 😊), the actual increased value in the property is $6,000,000! That’s the beauty of value-add.

Track Record

The next thing that catches my eye is, “Similar to Beta Apartments (acquired just last year and currently undergoing renovations)…” This tells me that this is not this team’s first rodeo. They’ve done this before and are currently in the trenches with another asset nearby.

I also see, in the Investment Highlights section, that they’ve started implementing their business plan at Beta Apartments and that they’re surpassing their original projections. This tells me that their business plan is working and that they would likely be able to continue to strengthen their track record through Omega Apartments.

Further, this tells me that they’ve likely built up a strong reputation in the area, amongst brokers, property managers, and other apartment owners. Otherwise, they wouldn’t have been awarded this off-market deal.

Strong Submarket

I don’t know about you, but if I’m going to invest in an apartment building, I want it to be in a growing and developing area.

The fact that this submarket is the “#1 fastest growing” within this fictional metropolitan area tells me that things are moving and shaking here. I would likely open a new browser tab and immediately google that metro area and that particular submarket, to learn more about them.

What am I looking for? Things like proximity to major employers in the area, shopping centers, decent schools, any news about developments in the area, what it looks like on Google street view, what nearby houses are selling for, and anything else I can find.

Much of this will be in the full investment summary, but it’s always a great idea to do a little independent research on your own as well. Trust, but verify…especially when we’re talking investment amounts like these.

Proven Model

Did you catch it? “Ten units have already been updated and are achieving rent premiums of $150.” Jackpot.

Why is this so important? This takes much of the guesswork and assumptions out of the value-add proposal. The previous owner already created the proof of concept. They updated a set amount of units, and they were able to get the higher rents.

This is great news. This means that all we have to do is go in and continue those renovations to achieve those same rental increases. To me, this signals much lower risk in a value-add opportunity.

Equity Multiple

There are certainly lots of numbers in any investment summary, and they can be overwhelming. Percentages, splits, projected returns, waterfalls…what do they all mean?

One metric I’ve come to rely on is the equity multiple. For me, the equity multiple is the real bottom line return that cuts through the other figures. In this case, the projected equity multiple is 2.1x. This means that during the life of this project, my money will be more than doubled.

That is, if you were to invest $100,000, you would come out of this project with $210,000.

This $210,000 would include your original $100,000 investment, as well as $110,000 of profits. This $110,000 would include the quarterly cash-on-cash returns you would be getting as long as the asset is held, as well as your portion of the profits from the sale of the asset.

Typically, I look for an equity multiple around 2x over 5 years, so this one passes my test.

Unit Count

I always like to know how many units I’m investing in. In this case, Omega Apartments consists of 250 units. This is a pretty decent size. This means that the team would be able to take advantage of economies of scale (i.e., increasing efficiencies by leveraging shared resources across the many units).

I will typically look at anything above 75 units. Ideally, to maximize economies of scale, I like to see over 100 units.

Next Steps…

Now that I’ve taken the initial look through the executive summary, my immediate next step would be to decide whether or not to request the full investment summary.

In this case, I would go ahead and request the full investment summary, as this opportunity ticks off most, if not all, of the things I look for in a multifamily investment opportunity – strong team, strong submarket, opportunity to add value and a >2x equity multiple.

In the meantime, I would do some more research on both the submarket and the deal sponsor team. I would definitely google Alpha Investments and read about the core people on their team, learn about other assets in their portfolio, and see if I can find any negative reviews or stories out there about the individuals or the team.

Be Ready to Move Quickly

Once you find an investment summary that meets your investment criteria, it’s critical that you move quickly. Why? Because these opportunities fill up on a first-come, first-served basis.

Chances are, if this investment opportunity met your criteria, it likely met others’ criteria as well. In that case, you’ll want to be ready to make a soft commitment to reserve your spot, then take that additional time to review the investment summary in detail.

Pro tip: There’s no penalty for backing out of an investment down the road, so it’s to your benefit to reserve early, to ensure you get a spot in the deal. If you wait around to be 110% sure, others will have jumped in front of you in line, and you may be left on the backup list.

Request a Full Investment Summary Sample

If you’re interested in seeing a sample of a full investment summary, or to gain access to the deals in our pipeline, consider signing up for the Deaton Equity Partners Passive Investor’s Group.

We are here to support you in your investment journey and will never pressure you to invest. Our goal is to help you gain the knowledge you need to invest with confidence (whether in our deals or someone else’s), so that together, we can change the world, one investment at a time.

Passive Income…for life!

Behind-the-Scenes: A Look at the Returns on 3 Multifamily Deals

Behind the Scenes

An Insider’s Look at the Returns on 3 Multifamily Deals

When it comes to investing, as with many of life’s major paths, it’s easy to look back and see the best choices, what should have been done, and what would have been a smart decision. Harnessing the ability to thoroughly understand your financial situation, identify actual financial goals, and commit to a plan of action are all easier said than done.

By looking at the past performance of three multifamily real estate investment projects, how much they returned to investors, and the impact they’ve had in their respective communities, it might help you understand what real estate syndications could add to your portfolio.

Keep in mind that, although these are based on actual projects and data, some identifying information has been adjusted to protect the privacy of the deals, partners, and investors.

Ready to dive in? Let’s go…!

looking at the past performance of three multifamily real estate investment projects…it might help you understand what real estate syndications could add to your portfolio

Case Study #1:

320-Unit Apartment Community

In May of 2016, a 320-unit apartment was acquired for $26.6 million. The class B apartment community was built in ‘83 and in a rapidly growing submarket of DFW (in Texas).

The business plan included on-site operations improvement and renovations for each unit for a full value-add deal. Upon acquisition, a professional property management team was placed. They maximized operational efficiencies and executed each phase of the business plan beautifully.

Within 18 months, the renovations were completed, and, since the market was favorable, the team sold the property for $35.2 million. This means by the time the property sold and everything was finalized, which actually took 22 months total, they’d exited the value-add real estate syndication with a profit of $8.6 million dollars.

What does this mean for investors?

Let’s pretend you’d invested $100,000 into this particular deal as a passive partner. You would have wound up with $170,000 in less than two years from your initial investment date. 70K profit in 22 months with zero work? Yes, please!

Case Study #2:

216-Unit Apartment Community

Our next example is also in DFW but only had 216 units and was built in ‘81. Although dated, it was a nice class B asset in a growing submarket of the metroplex.

One key difference between this example and the last one is that this apartment complex hadn’t been publicly listed. It was acquired off-market because of a partner/broker relationship established prior. They had a great track record and were able to make a quick, favorable deal without the challenge of competing against other potential buyers.

For $12.2 million the deal was done. The team rebranded and repositioned the property and invested several thousand per unit for renovations.

In just 18 months, the property sold for $18.25 million. They exited this particular real estate syndication deal with an over $6 million dollar profit.

If you were an investor in this deal with a $100,000 buy-in, you would have exited the deal with $200,000 just a year and a half later. I don’t know many places you can double your money that quickly.

Case Study #3:

200-Unit Apartment Community

Our third example is a more current project that was acquired off-market in December of 2017 for $16million. This 200-unit apartment community, also a class B asset, is in the DFW area like the others examined in this article.

Since it’s an ongoing deal, let’s dive a little deeper and study the progress.

May 2018 (6 months after purchase)

By then 38 units had been remodeled and new rental rates were $20 more than original projections. So, basically, the project was ahead of schedule – both renovations-wise and rental rate-wise, which is what you want to hear!

And $20 per unit might not sound like much, but when you talk about raising the rent per unit not only to a projected value, but $20 more than that??!! Well, it really adds up!

38 renovated units x $20 = $760 per month and $9,120 per year. At a conservative cap rate of 10%, this added $91,200 of unexpected, positive equity to the property.

Cha-ching!

Other projects completed within the first 6 months included an outdoor kitchen, a new dog park, rebranding with new signage, and construction of over 40 carports. That’s some serious progress!

December 2018

Renovations continued to run smoothly and new units were achieving rental premiums beyond projections. In fact, as a result of the increased rental rates, investors received an additional 2% in returns this month.

That means investors who put $100,000 in are receiving an extra $2,000 above and beyond the standard returns which have been about 0.67% or $667/month. Nice holiday bonus, right?

February 2019

This property and the team continued to outperform projections. In fact, within the first year, we experienced a 26.4% surplus which will allowed a refinance deal to go through at the end of the month.

That’s exciting news because, with these kinds of numbers, investors received 40% of their capital back while still maintaining the same cash-on-cash returns based on the original value invested.

What that means is the property is performing so well that the team is okay pulling some of the originally invested capital out of the project.

If you’d originally invested $100,000, not only would you have been receiving your $667 each month, plus the $2,000 bonus back in December, but now you’d have received a check for $40,000 of your original investment back with no change to your monthly returns.

Life. Changing.

August 2019

Renovations including eco-friendly toilets and showerheads were completed on 135 out of 200 units. Not only did the renovated units rent for an astounding $80 over projections, but we saved lots of cash on the overall utility costs for the property.

Future Outlook

All renovations necessary to complete the value-add process were scheduled for completions in just a few months. At that point, the team will either choose to sell or hold the asset until market conditions are most favorable.

Either way, this real estate syndication deal has been a huge success already, and residents and investors alike are both very happy.

Conclusion

The number one thing holding back potential investors is syndication education. These real estate syndications sound great and you see peers making great returns, but it can be super scary to invest your own $50,000 or $100,000.

Self-education toward understanding real estate syndications can be time-consuming and require a lot of energy upfront before you feel comfortable. The case studies here are all real projects that we and our partners have been a part of. None of the returns or the performance of the projects have been fabricated.

What can you do today, that your future self will thank you for? Investing in your financial education is one of the best ways to jump-start the progress toward your success two, five, or ten years from now. Look back at the deals mentioned here. Within 2-3 years the amount of income these investments have generated is absolutely impactful, to anyone’s life.

It’s why we absolutely love helping people generate Passive Income…for life!

In addition to the ideas just presented, you can amplify your journey with the following resources:

EXPLORE more about the power of passive real estate investments in our section of other blogs and videos.
SIGN UP for our newsletter for passive income-related content delivered right to your inbox
JOIN our Passive Income Investors Group to gain access to multifamily investment opportunities and more behind the scenes content

7 Steps to Investing in Your First Real Estate Syndication

7 Steps to Investing in Your First
Real Estate Syndication

For many of us, the process of buying a house is fairly familiar.

decide you want to buy a house
think about the neighborhood you want to be in
list out the features in your must-have versus nice-to-have columns
check with a lender to see how big a loan they’re willing to give you
consequently, move some things from your must-have to your nice-to-have column after you get your lender’s pre-approval letter
find an agent to tour properties until you find the home of your dreams
finally…put in that offer package that the seller would be crazy to turn down

[Insert your own variations and “fun” experiences here] 😊

While the timeline varies from deal to deal, the overall steps of investing in a real estate syndication are essentially the same

Similarly, other traditional types of real estate investing that involve buying a house and making some sort of profit on it, are also pretty easy to understand.

Fix-and-flip: buy a house, renovate it, sell it for a profit.
Buy and hold: buy a house, rent it out, get monthly rent checks.

Beyond that, the edges can start to become a little fuzzy, especially when you start talking about things like group investments (aka, syndications), in which you invest passively alongside several, sometimes hundreds of, other investors to purchase a large asset, like an apartment building.

In this post, I will walk you through that process at a very high level, from start to finish, so you have a clear understanding of all the steps involved in investing passively in your first real estate syndication.

While the timeline varies from deal to deal, the overall steps of investing in a real estate syndication are essentially the same:

Decide that you want to invest in real estate
Understand your investing goals
Find an investment opportunity that aligns with your goals
Reserve your spot in the deal
Review & sign the PPM document (private placement memorandum)
Send in your funds
Celebrate & look forward to receiving your passive income deposits!

The process behaves much like a funnel, with each step bringing more clarity on your goals, potential deals, and ultimately, that perfect deal.

Step #1 – Decide That You Want to Invest in Real Estate

This is your most important step in which you set your intention. After all, there are many other things you could invest in, from gold to coffee plantations to stocks and bonds.

This is a decision that I won’t be able to make for you. You’ll have to look at your overall portfolio, reflect on your goals, and decide whether investing in real estate can help you reach those goals.

What I can tell you, is a bit about how we got into real estate investing.

We began investing in residential real estate in 2016. We started with buying and selling rural, vacant land and upon selling it to others, we would owner finance the sale, thus building up a “passive” income stream.

Then a few years later, while we loved the idea of passive income, we didn’t want to take the time and effort to build a rental property portfolio; manage the properties; or go through the hassles of finding and buying the properties. We also really wanted to apply the lessons of other great real estate investors and leverage the huge tax savings that come with larger real estate assets.

Enter real estate syndications.

These investments presented the potential for greater returns than other investment types; could be totally passive; and brought us incredible tax savings. Since then, we’ve invested in over 1,000 multifamily units and have continued to build our cash flow, net worth and network while virtually eliminating our tax bill. Not too shabby!

Has every investment been a homerun? Absolutely not. But am I glad we made each and every investment that we did? Yes. 100% yes. Real estate has taught us about people, relationships & teams; leverage; tax benefits; passive income; and the power of giving back to the community. For us, real estate is a critical part of our lives and the cornerstone of our long-term strategy of building wealth for our family.

All that is to say, every person and every family is different, so you’ll need to do some research, thinking, and reflecting to decide if real estate investing is for you.

Step #2 – Understand Your Investing Goals

Once you decide that you want to invest in real estate, think about what you’re hoping to get out of it. Are you looking for a long-term or short-term investment? Are you hoping for a quick lump sum or a steady stream of passive income over time? How much do you have to invest, both in terms of money and in terms of time?

If you’re not afraid to roll up your sleeves and put in some sweat equity, or you want to control the process to choose your own tenants or cabinets or flooring, you might consider trying a fix-and-flip, or buying and holding a small rental property.

If, on the other hand, you want more of a set-it-and-forget-it type of investment, one that you can scale very quickly and that delivers nice, big tax benefits, then a real estate syndication might be a better fit. You can invest your money alongside other investors, then have an asset manager execute the strategy, manage the asset, and carry out the business plan to update the units and maximize impact and returns while you focus on other things and deposit your distribution checks.

Step #3 – Find an Investment Opportunity That Aligns with Your Goals

If, at this point, you’ve decided that a real estate syndication is the best fit for you, the next step is to find a syndication opportunity that works for you. Just as there are a variety of different real estate assets you can invest in personally, there are a variety of real estate syndication projects available as well, from ground-up construction to value-add assets, and even turnkey syndications.

To help investors learn about investment opportunities, deal sponsors typically provide some variation on the following materials:

Executive summary
Full investment summary
Investor webinar

These are the core materials that will give you a full 360-degree view of the asset, market, deal sponsor team, business plan, and the projected financials.

Personally, when I review these materials, I’m looking first and foremost at the team who’s running the project. I want to make sure they have a solid track record and that they’re good people. As you know, you can give a great project to a terrible team, and they’ll drive it into the ground. On the flip side, you can give a struggling project into a terrific team, and they’ll turn the whole thing around, delivering on the returns promised to investors.

Beyond the team, I look to see if the business plan makes sense, given the asset class, submarket, and where we are in the economic cycle. I do my own research on the market, looking at job growth, population growth, and other trends. I look at the minimum investment amount, projected hold time, and projected returns. I look to make sure that the team has multiple exit strategies in place in case their Plan A doesn’t pan out. I look for conservative underwriting. I prepare for, attend and/or review the investor webinar and ask tough questions.

Basically, I look for any reason NOT to invest in the deal.

If, after all my research and analysis the investment still looks good, I consider investing in the deal.

But again, this is my personal philosophy and methodology. As you review different investment summaries, you’ll come up with your own criteria of what you’re looking for. And the more you review, the better you’ll start to understand exactly what you’re looking for.

Step #4 – Reserve Your Spot in the Deal

One thing to note about real estate syndications is that the opportunity to invest in the deal is on a first-come, first-served basis.

This can be especially important for deals in hot markets with strong deal sponsors.

I’ve seen multi-million-dollar investment opportunities fill up in a number of hours.

That’s why it’s important to do your research ahead of time, to know how much money you want to invest, and what you’re looking for in an investment opportunity.

That way, when the opportunity opens up, you can jump on it with confidence.

Often, there will be an opportunity to put in what’s known as a “soft reserve” amount. This is a reservation that holds a spot for you in the deal while you take some time to review the investment materials. If you decide to back out or reduce your investment amount later, you can do so with no penalty.

The flip side is, if you don’t hold a place, but then later decide you want to invest, there may no longer be room for you in the deal, and you’ll have to join the backup list.

Not every deal offers a soft reserve, but when there is one, and I think I might be interested, I always put in a soft reserve to buy myself some more time to think about the deal, review the materials, and do my own research.

For deals with a soft reserve, this step and the previous step #3 might be flipped or more fluid, so I tend to review the executive summary, reserve my spot in the deal, then review the rest of the materials.

Step #5 – Review the PPM

Once you’ve decided to invest in a deal, the first “official” (aka, legal) step is the signing of the PPM (private placement memorandum).

This is a legal document (often quite lengthy) that goes into detail about the investment opportunity, the risks involved, and your role as an investor in the project.

The PPM is certainly not the most fun document to review, but it’s very important that you read through it so you fully understand all aspects of the investment opportunity – including the risks, subscription agreement, return structure, and operating agreement.

Step #6 – Send in Your Funds

Once you’ve completed the PPM, the next step will be to send in your funds (aka, the amount you’re investing into the deal).

Typically, you will have the option to either wire in your funds or to send in a check. I’ve used both methods before and have had no issues with either method.

Pro tip: Before wiring in your funds, be sure to double check the wiring information, and let the deal sponsor know to expect your funds so they can be on the lookout.

Step #7 – Celebrate & Get Ready to Receive Your Distributions!

You did it! By this point in the process, you’ve done your due diligence on the investment, reserved your spot in the deal, reviewed all the legal documents, and sent in your funds.

That means you’re done with all the “active” parts of your role as an investor. If we’re using the syndication-as-an-airplane-ride analogy, that means you’ve picked your destination, bought your ticket, checked your bags, reviewed the safety information, buckled your seat belt, and now you’re ready for a cocktail and a movie.

The next piece of communication you’ll likely receive is a note once the property has closed. Deal sponsors typically like to put lots of smiley emojis and exclamation points in these emails.

After that, expect monthly updates on the project, more detailed quarterly reports on the financials, quarterly cashflow distributions, and an annual K-1 Form for your tax returns.

Conclusion

So, there you have it. Hopefully, the process of investing in a real estate syndication is a bit clearer now, and…a little less intimidating.

Real estate syndications are more of a set-it-and-forget-it type of investment, so most of your active participation is up front. After you decide to invest in a syndication, you review the investor materials (executive summary, full investment summary, and investor webinar), reserve your spot in the deal, review and sign the PPM, and send in your funds.

The first time you do it, it might seem a bit confusing as to what to expect and what questions to ask. However, as you review and invest in more deals, the process will become very familiar. And after that? Well, we’re pretty darn confident you’ll be hooked on generating more Passive Income…for life!

And in addition to the ideas just presented, you can amplify your journey with the following resources:

EXPLORE more about the power of passive real estate investments in our section of other blogs and videos.
SIGN UP for our newsletter for passive income-related content delivered right to your inbox
JOIN our Passive Income Investors Group to gain access to multifamily investment opportunities and more behind the scenes content

Redefining Retirement

Retirement...Redefined

If You Could Retire Today…Would You?

Tune in to a little sports on the weekend, maybe one of the golf majors, and you’ll quickly be inundated with commercials showing you glamorous couples in love and enjoying their golden years. Ahh retirement. Promises of travel, relaxation, hobbies and all the ways you’ll love spending that nest egg down the road. Well, maybe way down the road. Plenty of time to get there, right? The 401k is doing ok. At least it was the last time you checked.

Maybe later next week you can set aside some time to review your investments and see what retirement looks like. It’s certainly not urgent. After all, retirement is decades down the road, so why think about it right now?

What we need to think about is getting that weekly report in tonight, or pulling together that information for the CPA, or hanging that new light fixture the wife wants installed. Or if there’s any time, maybe we think about mowing the yard. But…there probably won’t be any extra time.

Sound familiar?

Retirement is a daunting concept. It’s that massive stage of life looming out there. We don’t know where we’ll be or what we’ll be doing when we reach retirement, but we sure get shown lots of pictures of happy people playing golf and lounging by the beach and driving along the coast. So, maybe that’s what retirement is all about.

Maybe you feel a little guilt for not doing more to plan for retirement, yet it’s so far in the future, and such an overwhelming task, that it’s always something to put off till tomorrow, or the weekend, or next month. One of these days, you’ll have it all figured out, you’re sure of it. Maybe once you hit middle age, or once you at least pay off your kids’ college tuitions.

But stop right there. Nothing deserves the right to make you feel guilty about your life, not even your retirement.

So instead, let’s flip this whole thing on its head. Let’s reframe the entire concept of retirement.

Retirement 1.0

Traditionally, retirement has been a stage of life that comes near the end, once your kids are grown and out of the house, and once you’re too old to keep working. By that time, you’ll have poured over forty years of your life into a career. Your paychecks will likely have paid for your home, cars, some nice vacations and good educations for the kiddos.

Along the way, you’ve saved, let’s say, ten percent of your income every year, to put toward retirement planning.

By the time you reach retirement, you’re supposed to have saved enough to stop working and live off your savings for the rest of your life. How long will that be exactly?

What If You Run out of Money?

What happens if you inherited the longevity gene from your great aunt Mary, and you live to be over one hundred years old? That’s potentially another thirty-five years after retirement!

Even if you have enough to last through the end, that amount will likely be much smaller than the amount you started with when you entered retirement, because you’ll be spending your savings during that time. There will be very little, if any, additional income coming in during your retirement.

Rather than accumulate more money, the typical goal of retirement is simply to enjoy your life, while not running out of money.

But this is, in fact, one of the most common fears about retirement. People worry that they’ll run out of money before they run out of life. They’ll have to spend even more time working and earning and missing out on those rounds of golf with buddies.

And this fear makes total sense, when you think about retirement in the frame of this traditional model.

Rethinking Retirement 1.0

Let’s examine this from another angle. You know that cautionary tale about the squirrel who stores up acorns for winter? While his friends play all day, the squirrel works hard all spring, summer, and fall to store up enough acorns to last through the winter.

When winter comes, the squirrel can relax and enjoy the acorns he’s worked so hard to store up, while his friends, who didn’t think ahead, go hungry.

This is essentially the model of retirement we’ve all been taught. Save first, then spend.

But what if winter lasts longer than the squirrel had anticipated? Then the squirrel has to go back out to scrounge for food, even in the dead of winter.

What if, instead of spending all that time gathering acorns himself, the squirrel had devised ways for the acorns to accumulate automatically? (Don’t get caught up on the practicality of this hypothetical situation, just humor me for a minute.) Then, he could play with his friends during the best seasons of the year, have enough to last all winter, and potentially end the winter with more than he started.

This is the model of retirement I’d like to explore. Let’s call it Retirement 2.0.

Retirement 2.0
For a moment, let’s set aside the traditional model of retirement we’ve all been taught and reimagine retirement as it should be.

What if . . . we didn’t have to wait until the end of our lives for retirement?

What if . . . retirement could be something we could enjoy right now?

What if . . . we could be retired AND still continue working, but do what we love, not merely what we have to do?

What if . . . retirement wasn’t merely a stage of life but rather, a state of mind?

Now, this seems like a model of retirement that’s worth spending time on. This seems like a retirement that’s exciting, rather than daunting. This is a model of retirement I could get behind and enjoy spending time creating…instead that weekly report.

In order for this model of retirement to work, you have to imagine that you could find a way to generate income without you having to do anything (i.e., passive income). You find ways to put your money to work – working for you and your family.

This additional income would cover your living expenses, or perhaps even more, making it possible for you to quit your job and start a new adventure, or continue working your job, but with the mindset that you get to do it, rather than have to do it.

Retirement 2.0 is not a stage of life that comes at the end, a last hurrah. Rather, it’s an ongoing part of your life. Retirement 2.0 allows you to replace your active income (from working your job) with passive income (that you make even while you sleep), so that you get to live the life you’ve always wanted, while your kids are still young, while you’ve still got your health, and while you can really enjoy the essence of life.

And not only that, Retirement 2.0 allows you to create a cash-flowing engine for ongoing income and wealth accumulation, so that, regardless of what you do, you’re generating income for your family. That way, at the tail end of your life, you’re continuing to generate more income, rather than worrying about spending it all.

But, of course, Retirement 2.0 is not easy to achieve. It requires work, ingenuity, and courage. It requires you to think outside the box, to hustle, and to dare to create your own path.

Retirement 2.0 is certainly not for everyone.

But if you’re ready to take life by the horns and to make retirement an active part of your life, read on, to learn about how to make Retirement 2.0 a reality.

Achieving Retirement 2.0

Retirement 2.0 requires you to think outside the box, challenge the conventional wisdom you’ve been brought up with, and try new things in an effort to achieve financial freedom.

Start by working backwards from the amount of money you need to live each month.

This is your freedom number.

Your mission now is to discover ways to generate this amount of money passively each month. The keyword here is passive. You’re not looking for another job to replace your current one. That’s called a career change, not retirement.

What you’re looking for are ways to generate income while you sleep.

If you haven’t done this before, it can seem like a completely foreign concept. Generate income while I sleep? That sounds like something right out of a late-night infomercial.

But believe me, once you get the hang of it, it’ll open up a world of possibilities you never even knew existed.

There are countless ways to generate passive income. Some people write books, some people create online courses and businesses, …and some people invest in real estate.

It is, of course, the last of those that has brought us to where we are, and Deaton Equity Partners to where it is – helping others create Passive Income. For life!

Through investing in real estate, we generate income while we play!

Regardless of what we do that month – working overtime or hiking in the Rockies – that distribution check comes in regularly, like clockwork. My fish keep piling up, and I don’t even need my fishing pole anymore.

Each piece of real estate I’ve invested in generates income on my behalf and contributes to my freedom number.

As long as I hold the real estate, it continues to generate income. It’s money coming in each month, rather than money going out, which makes it possible for retirement to be part of my life now, rather than down the road.

To Retirement, and Beyond!

As I mentioned, there are many, many ways to generate passive income. It can be difficult to take that initial leap, to think outside the box, and to get started.

But once you do, that little passive income snowball will keep getting bigger and bigger, and soon, you’ll spend all your time on your retirement, and no time at all weekly reports.

If you’re interested in leveraging passive real estate investments on your journey to your Retirement 2.0, a great place to start is by joining the Deaton Equity Partners Passive Investor’s Group. We provide additional resources and investment opportunities to accelerate your retirement and get you living your best life now.

Here’s to retirement!

5 Things Every New Investor Should Do Before Investing In Their First Real Estate Syndication

5 Must-Do Actions

– For The New Investor –

When you first begin considering real estate syndication as an investment option, it can feel intimidating, overwhelming, or like that first day on the new job.

I personally experienced fears around investing in a real estate investment property I’d never seen; had concerns about how I’d get my money back; and fought with doubts around the inability to log into an account and even see my “money”.

I addressed my fears head-on through research and education. Every article I read, podcast episode I listened to and each conversation I had, built up my confidence until I felt ready for action.

If you’re considering your first real estate syndication and feeling hesitant, I recommend taking time and action to do research, connect with other real estate investors, read through previous deals, and build up your knowledge base. With education comes confidence!

In addition to our amazing content, here are a few of our favorite resources to help you on your journey…

Do Your Homework

The best way to build your real estate investing confidence is through self-education and research. Listen to podcasts, read books, and find websites on real estate.

Books:

Rich Dad, Poor Dad, by Robert Kiyosaki – without a doubt this classic was fundamental in our mindset shift to making our money work for us with cash-flowing assets. A must-read!!

Tax-Free Wealth, by Tom Wheelwright – Tom is Robert Kiyosaki’s CPA and has an incredible wealth of knowledge about how to maximize your investments with the ultimate goal of reducing or eliminating your tax liability.

ABC’s of Real Estate Investing, by Ken McElroy – more of a behind the scenes look at finding, acquiring and running syndications, Ken delivers a great overview of the multifamily syndication process from the active partner’s perspective.

YouTube Channels We Love:

Ken McElroy
Bigger Pockets
Graham Stephan

Podcasts:

BiggerPockets Podcast – seemingly endless episodes across a wide variety of topics

Best Real Estate Investing Advice Ever with Joe Fairless – an insane amount of content from one of the biggest in the business

The Real Estate Radio Guys – these guys have been focused on real estate investing for about 15 years and have some great content

Ask Questions

You can find amazing, relevant Facebook groups and also forums like BiggerPockets can help answer questions…and even help you learn what questions you should be asking!

It’s likely that other real estate investors have asked about your same concerns and, just by reading through the forum’s questions and answers, you’ll gain clarity.

Remember there are no dumb questions and that you have the right to be diligent about gathering answers to your concerns.

Connect with Other Real Estate Investors

It’s a common refrain to hear that real estate investing is a team sport. And every successful real estate investor needs a supportive community. Considering that a syndication is literally a group real estate investment, you’ll want to network with other like-minded investors.

New investors will share similar anxieties, questions, confusion, and excitement. Experienced real estate investors can provide invaluable firsthand accounts of their experience with various projects, including apartment complex investments, and sponsors.

Find other investors through online forums like BiggerPockets, local networking events, meetups, or by asking sponsors of other syndications if they’ll connect you to their current real estate investors.

Review Previous Real Estate Deals

Finding comfort with financial projections, summary data, and real estate investment lingo may feel overwhelming.

A great way to help understand the language and how investments play out is to review other investment summaries. You’ll start to understand the flow of the deal packages, how each sponsor communicates, and exactly which real estate investments interest you.

Take Your Time…But Be Ready!

Simply due to the nature of the process, multifamily syndications usually have a limited time between becoming an official, approved deal and closing the deal. As a result, each new real estate investment opportunity will fill up quickly. This can make new real estate investors anxious from the small window to decide and at the same time panic from fear they are missing the best deals.

Stay calm. Remember, there will always be another high-return investment opportunity.

Allow yourself time to complete the steps laid out here, so that when you make your real estate syndication choice, you are confident about the investment information provided.

Considering Everything…

If you take nothing else from this article, remember it’s completely normal to feel skeptical, anxious, and even timid when making your first real estate syndication commitment.

The ability to take action is what separates the successful from those who give up.

Your first real estate syndication deal is a huge milestone in your investing journey, and even though your head might be spinning now, this is a time to savor taking steps to control your future.

It is absolutely life-changing when you start generating Passive Income…for life!

In addition to the ideas just presented, you can amplify your journey with the following resources:

EXPLORE more about the power of passive real estate investments in our section of other blogs and videos.
SIGN UP for our newsletter for passive income-related content delivered right to your inbox
JOIN our Passive Income Investors Group to gain access to multifamily investment opportunities and more behind the scenes content

Value-Add Investment Strategy An In-Depth Look

The Value-Add Strategy

– An In-Depth Look –

Imagine driving down the street and spotting an old bookshelf sitting out on the curb. You pull over to check it out, and since it’s in pretty decent shape, you proceed to lug it home, clean it up and give it a fresh coat of paint.

A few years later, you sell the shelf to someone else who claims to have the perfect spot for it.

You took something that had been overlooked, committed some sweat equity, and breathed new life into it. This is the essence of a value-add investing strategy, and it’s a commonly used strategy in real estate investing.

The Basics of Value-Add Real Estate Investing

In the world of single-family homes, the process of buying a run-down property, remodeling it, and then selling it for a profit, is commonly referred to as “fix-and-flip”. Your ability to see a diamond in the rough along with your “sweat equity” is rewarded monetarily, and the new owner gets an updated, move-in ready home.

Value-add multifamily real estate deals follow a similar model, but on a big-time scale. Properties with hundreds of rental units get renovated over the course of a year or two instead of just one single-family home over several months.

A great value-add property may have peeling paint, outdated appliances, or overgrown landscaping, which all affect the curb appeal and the initial impression that a potential renter will have. Simple, cosmetic upgrades can attract more qualified renters and increase the income the property produces.

In value-add investments, improvements have two primary goals:

To improve the individual units, the overall property and the community (positively impact residents)
To increase the bottom line (and positively impact the investors)

Value-Add Examples

Common value-add renovations can include individual unit upgrades, such as:

Fresh paint
New cabinets
New countertops
New appliances
New flooring
Upgraded fixtures

In addition, adding value to exteriors and shared spaces often helps to increase the sense of community:

Fresh paint on building exteriors
New signage
Landscaping
Dog parks
Gyms
Pools
Clubhouse
Playgrounds
Covered parking
Shared spaces (BBQ pit, picnic area, etc.)

On top of all that, adding value can also take the form of increasing efficiencies:

Green initiatives, like water savings, to decrease utility costs
Shared cable and internet services
Reducing overhead and expenses

Coordinating a Multifamily Value-Add Strategy

The basic fix-and-flip of single-family homes is pretty familiar to most people, but when it comes to hundreds of units at once, the renovation schedule and execution of a complex business plan aren’t as intuitive. Questions arise around how to renovate the property while people are living there and how many units can be improved at a time.

When renovating a multifamily property, the vacant units usually proceed first – the low-hanging fruit. In a 100-unit complex, a 5% vacancy rate means there are five empty units, which is where renovations will begin. Oftentimes when acquiring a target property, the vacancy rates are much, much higher, like 10-20%, and a large portion of any renovations can happen more quickly.

Once those initial units are complete, those units can be leased at a more appropriate rental rate. Additionally, as each existing tenant’s lease comes due for renewal, they are offered the opportunity to move into a freshly renovated unit. Usually, tenants are more than happy with the upgraded space and happy to pay a little extra.

Once tenants vacate their old units, renovations on those units take place, and the process continues to repeat until most or all of the units have been updated.

During this process, some tenants do move away, and it’s important for projects to account for a temporary increase in vacancy rates due to turnover and new leases. However, the property also begins to attract more new residents due to the improved appeal.

Why We Love Investing in Value-Add Properties

When done well, value-add strategies benefit all parties involved. Through renovations, we provide tenants a more aesthetically pleasing property, with updated appliances and a more attractive community space. By doing so, the property becomes more valuable (a concept known as ‘forced appreciation’), allowing higher rental rates and increased equity, which makes investors happy too.

The property-beautification process and the fact that renovated property is more attractive to tenants is probably straightforward. But let’s dive into why value-add investing is a great strategy for investors.

First, A Look at “Yield” Investment Strategies

To fully appreciate value-add investments, we must first understand their counterparts, yield plays. In a yield play, investors buy a stabilized asset and just aim to maintain steady operations for potential future profits.

Yield play investments are where a currently-cash-flowing property that is in decent shape is purchased and held in hopes to sell it for profit, without doing much, if anything, to improve it. Yield play investors hold property in anticipation of potential market increases, but there’s always the chance of experiencing a flat or down market instead.

In a yield play, everything is dependent upon the market. And as such, the returns on the investment are typically much lower.

Now…Back to Value-Adds

Value-add plays and yield plays are opposites. In a value-add investment, significant work (i.e., renovations and/or improved operations) takes place to improve the revenue and profit of a property, and thereby increase its value. The implementation of such improvements carries a significant level of risk.

However, value-add investment deals also come with a ton of potential upside, since the investors hold all the cards (back to forced appreciation). Through physical actions that improve the property’s appeal and financials, its value increases exponentially. Value-add investors don’t just hold the asset hoping for market increases. They force appreciation by improving a business asset.

Through those property improvements, additional income is increased, thus also increasing the value of the asset and generating more equity in the deal (of note, commercial properties are valued based on how much income they generate, not on similar, nearby properties, like single-family homes), which allows investors much more control over the investment than in a yield play.

Of course, the best of both worlds is ideal. This is where an asset gets improved as the market increases simultaneously. Investors have control over the value-add renovation portion and the market growth adds appreciation.

Now, before you get all excited about the potential of this hybrid investment, there are risks associated with any value-add deal.

Examples of Risk in Value-Add Investments

In multifamily value-add investments, common risks include:

Not being able to achieve targeted rent growth
More tenants moving out than expected
Renovations running behind schedule
Renovation costs exceeding initial estimates (which can be a big deal when you’re renovating hundreds of units)

Risk Mitigation

When evaluating deals as potential investments, it is critical to find sponsors who have capital preservation at the forefront of the plan and who have a number of risk mitigation strategies in place. These may include:

Conservative underwriting (planning for rents less than maximum comps, padding the renovation budget, keeping a few improvement ideas in the back-pocket…)
A proven business model (e.g. some units have already been upgraded and are already achieving the projected rent increases)
An experienced team, particularly the project management team
Multiple exit strategies
The budget for renovations and capital expenditures is raised upfront, rather than through cash-flow

Value-add investments can be powerful vehicles of wealth, but, as mentioned, they also come with serious risks. This is why risk mitigation strategies are important – to protect investor capital at all costs.

Recap and Takeaways

No investment is risk-free. However, when something, despite its risks, provides great benefits to the community AND investors, it becomes quite attractive.

Properly leveraging investor capital in a value-add investment allows tremendous improvements in apartment communities, thereby creating cleaner, safer places to live and making resident families happier.

Because investors have control over how and when renovations are executed, rather than relying solely on market appreciation, they have more options when it comes to safeguarding capital and maximizing returns.

A real win-win-win! It’s a key driver in why we love creating Passive Income…for life!

Interested to learn more?

EXPLORE more about the power of passive real estate investments in our section of other blogs and videos.
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JOIN our Passive Income Investors Group to gain access to multifamily investment opportunities and more behind the scenes content

4 Reasons Why NOT to Invest in a Real Estate Syndication

4 Reasons Why NOT to Invest

– In a Real Estate Syndication –

If you’ve spent any time with us or visiting our website, you’re familiar with our perspective on real estate syndications.

WE THINK THEY ARE AWESOME!!!

We believe people should be interested and trying to invest in them, and we can’t wait to continue to share about them so that more people have the opportunity to learn about these types of passive investments. They have literally been life-changing for us.

However,

…we also know that real estate investments, for many people, are a BIG investment and are, as such, not the perfect choice for everyone.

So without further ado, here are our top four reasons why someone should NOT invest in real estate syndications (no drumroll required 😊)

1) You Can’t Take Your Money Out At Will

Entering into a real estate syndication deal means you agree to the terms of the investment and projected hold time. Other than a few exceptional cases, your investment capital (the money you invested) is illiquid (not easily withdrawn) for the duration of the deal until the asset is sold. Now each business plan is unique and it is expected that you will receive regular cash distributions, as well as possible equity payouts during the investment. Those returns however depend on the business investment operations and should not be counted upon.

So, if you’re passively investing in a real estate syndication deal and the hold time is 5 years, then you should plan to leave your money invested for the full 5 years, or possibly longer if market conditions change.

Other investments like stocks and mutual funds are much more flexible, and oftentimes you can decide to sell and have your money back within minutes. In contrast, real estate syndications do not allow you to make unplanned withdrawals at will.

Upon initiating or entering a real estate syndication deal, investors must sign the Private Placement Memorandum (PPM). This document spells out the hold time, liquidity, and other details of the investment. If there’s anything about the idea of investing at least $50,000 and not having access to it for 5 years that makes you uneasy, turn around now.

2) You Have To Invest A LOT of Money

The minimum investment on our real estate syndication deals is typically $50,000 (and sometimes $75,000), which is a LOT of money for most of us.

You could buy a car, pay for private school, or make major headway on a mortgage. There are many options on how such a large value of cash could be used. As you may have figured out though, we tend to believe wisely investing your money in cash-flowing assets is one of, if not the best way to grow your wealth over time and enjoy a wide degree of freedom!

Our advice? Don’t put $50,000 into a real estate syndication until you’re absolutely sure that THIS is how you want to use this money.

Want more of our advice? If you have $51,000 in your bank account, think long and hard before you invest $50,000 into a real estate syndication. If fact we meet with all of our potential investors upfront and this is exactly one of the reasons – to ensure they have the right knowledge about the in’s and out’s of multifamily syndication and assess whether it’s a good fit.

Since your investment won’t be available for several years, you’ll need to ensure you have enough saved in a separate emergency fund; have set aside other accessible savings for your short-term goals; and have access to cash to…well…cover life in general. Go with your gut on this one.

3) You Have to Learn A New Investment Method

Standard rental properties work much the same way as they do in the game of Monopoly. You stop by and assess a property, buy it, rent it out, and collect rent each month.

Investing passively in real estate syndications requires you to throw all of that out the window. Passive investors almost never set foot on the property, they don’t have a relationship with the lender or the management team, and they’ll never come into contact with tenants.

You will enter into the investment when the asset is already on its way to closing. Passive investing is called “passive investing” for a reason – because you’re not involved day-to-day and because you retain freedom of time throughout the process. Put your money to work for you and enjoy the fruits of someone else’s labor.

4) You Give Up Control

Another fundamental difference between passive investing and other investments is the level of control you have over the daily decisions made regarding the property, any renovations, and the tenants.

In personal real estate investments, you retain creative control over improvements, ensure (hopefully!) the screening of tenants, and determine the perfect time to sell the property.

Investing passively in real estate syndications removes all of these daily hassles and puts you in the passenger seat. This can be frustrating if you’ve previously enjoyed controlling every single aspect of an investment property. However, developing a level of trust in the sponsor team, in this case, is imperative.

If you don’t think you can handle allowing a team of industry professionals to make decisions for you, you might as well cross real estate syndications off your list now.

In Conclusion

Every syndicator and sponsorship team will shout from the rooftops about how great syndications are, and sure, they can be fabulous tools to grow wealth. But no investment vehicle is perfect and, certainly, no single investment style is perfect for everyone.

If any of the above top four reasons NOT to invest in a real estate syndication triggered you, maybe investing passively in real estate syndications isn’t your cup of tea. And that’s okay.

You should have (and do have) the power to choose what’s right for your situation, your family, and your financial goals; and you should absolutely exert that power to the fullest. Be honest with yourself and listen to your gut. You can also explore more and listen to the experience of other successful investors. It’s our goal to compile the best content on multifamily investing to help those that are interested, become ready.

Passive Income…for life!

And if you are interested in taking action, here are a few next steps down the path to financial freedom…

EXPLORE more about the power of passive real estate investments in our section of other blogs and videos.
SIGN UP for our newsletter for passive income-related content delivered right to your inbox
JOIN our Passive Income Investors Group to gain access to multifamily investment opportunities and more behind the scenes content

Real Estate Syndication Investing 101

What the #@%& is a Multifamily Syndication?

– And How Does It Work? –

Many real estate investors “get their feet wet” through some form of residential real estate. Whether those initial investments are flips, standard rental homes, or even duplexes, it can be a great way to start and has served many real estate investors very, very well. In the course of our journey, we’ve discovered and absolutely love the power of multifamily syndications. However, whenever we speak to many of our friends, family and colleagues, they may have only vaguely heard of multifamily syndications…or not at all – nothing but blank stares.

Actually, that’s pretty common. Until somewhat recently, SEC (Securities Exchange Commission) regulations did not allow for real estate syndication opportunities to be publicly advertised. This made it so that you had to be part of the “inner circle” (i.e., you had to know someone who was doing a deal) in order to invest in one. The intent of the regulation was, and is, to protect unsuspecting and ill-informed potential investors from getting involved in investments they don’t fully understand.

The SEC now however allows certain opportunities to be shared more broadly, with caveats, which opens the door for more people to learn about and invest in alternative investments, like multifamily syndications, which are actually quite common and well-structured.

But maybe you’re unfamiliar with multifamily syndications too, and are wondering things like:

What exactly is a real estate syndication?
How does a real estate syndication work?
Why would I invest in a syndication deal?
What would an example real estate syndication look like?
What are the risks and benefits?

Well, let’s take a look under the hood…

Multifamily Real Estate Syndications – WTH Are They!

Let’s start with the basics.

A multifamily property is, well…exactly as it sounds – a property that can house multiple families. They are like an apartment, 4-plex, or a grouping of housing units.
And a syndication simply means a group of people (or entities) that pool resources together.

So a multifamily real estate syndication is when a group of people pool their resources (funds, time and expertise) together to invest in a multifamily asset. Instead of buying a bunch of small properties, each individually, the group of people come together and buy a larger asset, and typically share in a larger return while de-risking the overall investment.

Let’s pretend you have $50,000 for investing, beyond other savings and retirement funds. You could invest it in an individual rental property, but that would also require time to find a property, evaluate the cost-benefit analysis, negotiate the contract, do the inspections, get the loan, find the tenants and then manage the property.

But it’s likely you don’t have the time or energy (or desire!) to deal with so many obligations. This is where most people assume real estate investing is too hard and too much work, so they stop there.

Real estate syndications are the alternative that allows you to still put your money into real estate without having to actively do the work of finding or managing the property yourself. Instead, you can invest that $50,000 into a real estate syndication as a passive investor. So you contribute $50,000, maybe a friend has another $50,000 to invest, someone else puts in $100,000, along with others until you’ve raised what’s needed to close on the property.

By pooling resources, the group now has enough to buy not just a single rental property, but something bigger, like an apartment building. And as a passive investor you don’t have to do any of the work managing the property. A lead syndicator or sponsor team does the upfront work and manages the investment (i.e. all the active work) and in return, they get a small share of the profits. Additionally, a professional property management company can be hired to run the day-to-day operations. And you, the passive investor, enjoy putting your money to work to generate nice, stable returns so that you can focus your time and energy on the things you really want to do.

When done right, real estate syndications are a win-win for everyone involved.

So How Does A Syndication Deal Work?

Ok, curiosity piqued, you’re interested in the “behind the scenes” details of a syndication to see how this all really shakes out.

First off, there are two main categories of investors who come together to form a real estate syndication:

the active investor(s), aka the general partners (GP’s), and
the passive investors, or the limited partner (LP’s)

The prior section described a team that would take care of all day-to-day management (so you don’t have to!) in exchange for a small share of the profits. That team is called the general partners (GPs). They are called the ‘active partners’ and do all the legwork of finding and vetting the property; creating the business plan; securing lender financing; putting up initial “at-risk” funds necessary to close; securing other investors for the down payment & equity; and managing the investment after closing and thereafter, until any subsequent sale. Essentially, they do the work that you would be doing as the owner and landlord of a rental property, but on a massive scale.

The limited partners (LPs) are the passive investors (others like you), who invest their money into the deal in exchange for a portion of the cash flow and/or a percentage of the asset. The limited partners have no active responsibilities in managing the asset.

A real estate syndication is designed to work best when general partners and limited partners join together and collaborate in this manner. The general partners find a great deal and put together an efficient team to execute on the intended business plan. And the limited partners invest their personal capital into the deal, which makes it possible to raise the down payment, acquire the property, and fund the renovations.

Together, the general partners and limited partners form an entity (usually an LLC), and that entity holds the underlying asset. This serves to protect the partners and investors from personal liability and formally organize the structure and responsibilities of each of the partners, along with expected compensation. Because the LLC is a pass-through entity, you also get to share in the tax benefits of direct ownership of a real estate asset.

Once the deal closes, the general partners work closely with the property management team to improve the property according to the business plan, with the intent of increasing business revenue and compounding the property’s overall value. During this time, the limited partner investors receive regular communications as to the performance of the investment and ongoing cash flow distribution checks (usually sent out quarterly).

Depending on the business plan and strategy (such as planned renovations, improved operations or simply maintaining smooth operations), there may be refinancing events and/or a planned sale of the property. A refinancing event is similar to a home equity refinancing to leverage increased value and/or better loan terms and generates a return of capital distribution to the investors. And the sale of a property is most often exercised to capitalize on improved property value, which also returns equity to the investors. When these events take place, even larger payouts are distributed among the partners. And in the case of the sale of an asset, the partnership is then dissolved and team members can work to find yet another great deal.

Why Should You Invest In A Syndication?

Okay, now that you understand the basics of how real estate syndications work, let’s talk about what’s in it for you, the passive investor. There are a number of reasons that passive investors decide to invest in real estate syndications.

Here are a few of the top reasons:

You want to invest in real estate but don’t have the time or interest in being a landlord
You want to invest in physical assets (as opposed to paper assets, like stocks), which is a great way to diversify and hedge against inflation
You want to invest in something that’s historically been more stable than the stock market
You want transparency in how your investment dollars are invested and any fees that may be charged
You want the tax benefits that come with investing in real estate
You want to receive regular cash flow
You want to invest with your retirement funds
You want your money to make a difference in local communities

A real estate syndication is a nearly perfect way that a busy professional can invest in large-scale, physical real estate assets, without the commitment of time or excessive mental energy, while also positively impacting the community and earning interest and tax benefits. This opportunity for passive income is sounding better and better!

Let’s Look At An Example Real Estate Syndication:

Okay, so you’re interested, but you’re still like, “Is this real?” Here’s an example of what a real estate syndication deal would look like.

Let’s say that Jane and John are working together to find an apartment community in Dallas, Texas. Jane lives in Dallas, so she works with real estate brokers in the area to find a great property that meets their criteria. After looking at a bunch of properties, they find one, listed at $10 million.

John takes the lead on the underwriting (a fancy term that means analyzing all the variables, costs and benefits to make sure that the deal will be profitable), and they determine that this property has a ton of potential. Greenlight!

Since Jane and John don’t have enough money to purchase the $10-million property themselves (approximately $3-million upfront costs), they decide to put together a real estate syndication to purchase the property. They create the business plan and investment summary for prospective investors and work with a syndication attorney to structure the deal.

Then, they start looking for limited partners (passive investors) who want to invest money into the deal. Each passive investor invests a minimum of $50,000 until they have enough to cover the down payment, closing costs, as well as the cost of any planned renovations and a safety net to support the transition of operations.

Once the deal closes, Jane works closely with the selected property management team to improve the property and get the renovations done on budget and on schedule.

During this time, Jane and John send out monthly updates, as well as quarterly cash flow distribution checks, to their passive investors.

When the renovations are complete, Jane and John determine that it’s a perfect time to sell and the property sells for $15 million after just 3 years. Each passive investor receives their original capital investment PLUS their split of the profits according to the original deal. In this case, a 70/30 split was agreed upon at the creation of the syndication (70% to investors, 30% to the Jane and John).

At this point, each passive investor has received regular cashflow distribution checks during the renovation and hold period, plus their initial capital investment back once the property sold, plus their portion of the profit split after the sale…a pretty sweet deal for little-to-no work!

In Conclusion

Now that you know the ins-and-outs of a real estate syndication, including what it is, how it works, how little effort on your part it requires, and how simple it could be to begin receiving your first passive income check, definitely don’t wait 10 years to make a move.

We always recommend doing your research until you’re comfortable with how investments work in general as well as any specific investment strategies. Now that you’re armed with this knowledge about real estate syndications though, you’re miles ahead of most other investors. Keep at it! Investing in real estate has given us a huge degree of personal and financial freedom in our lives and we hope you find it just as beneficial, if not even more so! As we love to say…passive income. For Life!

And here are a few ways you can continue taking action to take back your time:

EXPLORE more about the power of passive real estate investments in our section of other blogs and videos.
SIGN UP for our newsletter for passive income related content delivered right to your inbox
JOIN our Passive Income Investors Group to gain access to multifamily investment opportunities and more behind the scenes content

Real Estate Syndications - How To Tell If They Are Right For You

So you’ve been devouring all the information possible and have become enamored with the power of passively investing in real estate syndications. How could you not?!

#1 You Have More Than $50K of “Play” Money

#2 You’re Okay Having Someone Else Take the Reins

#3 You’re Looking for a Long-Term Investment

#4 Sharing Returns In Exchange for Less Work is Attractive to You

#5 You Don’t Need the Money for a While

Taxes & Syndications

Investing in real estate can often help lower the amount of taxes you owe, even while you’re making great returns on your investment

Dissecting Investor Summaries

just how are investors supposed to separate the wheat from the chaff?

Passive Income…for life!

Behind the Scenes

looking at the past performance of three multifamily real estate investment projects…it might help you understand what real estate syndications could add to your portfolio

Case Study #1:

Case Study #2:

Case Study #3:

May 2018 (6 months after purchase)

December 2018

February 2019

August 2019

Future Outlook

Conclusion

7 Steps to Investing in Your First Real Estate Syndication

While the timeline varies from deal to deal, the overall steps of investing in a real estate syndication are essentially the same

Retirement...Redefined

So instead, let’s flip this whole thing on its head. Let’s reframe the entire concept of retirement.

Retirement 1.0

5 Must-Do Actions

Do Your Homework

Books:

YouTube Channels We Love:

Podcasts:

Ask Questions

Connect with Other Real Estate Investors

Review Previous Real Estate Deals

Take Your Time…But Be Ready!

Considering Everything…

The Value-Add Strategy

The Basics of Value-Add Real Estate Investing

Value-Add Examples

Coordinating a Multifamily Value-Add Strategy

Why We Love Investing in Value-Add Properties

First, A Look at “Yield” Investment Strategies

Now…Back to Value-Adds

Examples of Risk in Value-Add Investments

Risk Mitigation

4 Reasons Why NOT to Invest

However,

1) You Can’t Take Your Money Out At Will

2) You Have To Invest A LOT of Money

3) You Have to Learn A New Investment Method

4) You Give Up Control

In Conclusion

What the #@%& is a Multifamily Syndication?

Multifamily Real Estate Syndications – WTH Are They!

So How Does A Syndication Deal Work?

Why Should You Invest In A Syndication?

Let’s Look At An Example Real Estate Syndication:

In Conclusion

DISCLAIMER / NO OFFER OF SECURITIES

The Easiest Way to Earn Massive Cash Flow in Real Estate!

Real Estate Syndications -
How To Tell If They Are Right For You

7 Steps to Investing in Your First
Real Estate Syndication