What is a passive investor in real estate syndication?
A passive investor is an individual who provides capital for a real estate investment but does not actively take part in the property’s management. Real estate syndication is a type of investment that allows multiple investors to pool their resources and buy a property together.
Think of it as a real estate investing club where members can pool their money to buy a property that they otherwise might not afford on their own. However, they don’t have to do any work involved in owning and managing the property. That’s what the sponsor, or general partner, does. Instead, they collect a share of the property’s quarterly profits (distributions).
What are the benefits of being a passive investor?
There are many benefits to being a passive investor, including:
- Generating income without having to take part in the business actively
- Diversifying your investment portfolio
- Receiving professional management of your investment
- Access to investment opportunities that you may not have otherwise been aware of
- The potential for high returns
What is an accredited investor and is it necessary?
An accredited investor is an individual who meets certain criteria set forth by the Securities and Exchange Commission (SEC). To be considered an accredited investor, you must earn an annual income of $200,000 or more (or $300,000 or more if filing jointly with a spouse) for the past two years and have a reasonable expectation of earning the same or more in the current year.
Alternatively, you can have a net worth of $1 million or more, alone or with a spouse (excluding the value of your primary residence).
If you meet either of these criteria, you are considered an accredited investor and can invest in certain types of investment vehicles, such as private placement offerings, that are not available to the general public.
What is the minimum investment?
The minimum investment amount varies depending on the project. Please contact us for more information.
How long should I plan to have my money invested?
The minimum investment period is typically five years. However, some projects may have a longer investment horizon. Investors receive regular returns throughout the project’s life and can typically exit the investment at the end of the project term.
Life happens. If you need to access your investment early, we may be able to help. Please contact us to discuss your options.
What return should I expect on my investment?
The return on investment (ROI) varies depending on the project. However, our team has a proven track record of success and is committed to generating strong returns for our investors.
To learn more about specific opportunities, please contact us.
What are the risks associated with investing?
All investments come with some level of risk. However, we take a cautious and disciplined approach to investing, which helps minimize risk and maximize returns.
Some risks associated with real estate investing include:
- Market risk: The value of your investment may go up or down due to changes in the overall market.
- Interest rate risk: If interest rates rise, your investment’s value may go down.
Default risk: The borrower may default on the loan, which could lead to a loss of your investment.