Understanding Real Estate Syndication Investing
The simple way to…build generational wealth, achieve financial freedom, create your legacy, and live life on your terms.
Real estate syndication allows investors to pool their funds to purchase larger properties than they could alone. A syndicator (investment organizer) assembles the limited partners (passive investors), finds and negotiates suitable real estate investments, and then arranges the financing to purchase the property. Then based on the agreed-upon terms, investors receive passive income from the property investment paid out overtime. Investors also receive tax benefits from the property ownership and their share of a sale of the property.
Real estate syndications profit by collecting rent from tenants as well as market appreciation of the property and forced appreciation through property improvements on value-add deals. Real estate syndications also benefit from tax advantages such as depreciation, which can reduce tax liability. With the economies of scale in syndications, investors reap the benefit of the process being efficient over a larger number of units; why spend the time to manage one-two units when the process can be replicated to many units. By leveraging the experience of an established syndicator, investors can have a professional management team taking care of everything, so they just collect their portion of the proceeds.
Generally, real estate syndication is open to accredited and sophisticated investors.
Accredited investors typically have to meet a minimum net worth requirement or income minimum and often have an accredited investor status or verification from the Securities and Exchange Commission (SEC). This is a way of making sure they are in a position to responsibly invest at the scale they would need to for certain securities offerings, real estate syndications being one of them.
A sophisticated investor has a significant depth of knowledge in financial markets, business models, and industry trends. In addition, they usually have access to capital and more experience investing.
With One River Capital you do not need to be an accredited investor, as the common minimum for our investments is $50k, with occasional opportunities at $25k. You do however need to be a sophisticated investor, someone who has enough experience to evaluate the investments. Through the process of getting to know us and the education we provide around all of the potential deals you can gain this experience and be ready to invest with us.
We walk you through everything so you are comfortable with how your money is invested and understand what your expected passive income will be for each particular investment.
Join the One River Investor Circle to start the process!
Investing in real estate syndications offers a variety of benefits, including:
- Access to larger, more profitable deals that would otherwise be unaffordable as an individual.
- Passive income without actively managing the property as a landlord.
- Enjoy reduced risk through diversifying investments across multiple properties and locations.
- Take advantage of greater tax benefits due to cost segregation, additional deductions and depreciation allowances, applicable to real estate syndication investments.
After investing in a real estate syndication, you become part of the syndicate and have the right to collect a share of the profits generated by the investment. The syndicator(s) are typically responsible for all decision-making about the acquisition and management of the property. At One River Capital we have a group of syndicators so we can leverage each other’s experience to create the best outcomes.
Once investors sign the paperwork, their job is done! It is that easy to earn passive income. You will receive frequent updates on the property and proportional distributions from cash flow, refinance proceeds, and sales profits explained in the operating agreement.
How quickly can I see a return on my investment? How is cash distributed?
The return on investment timeline varies based on the type of investment you make. Generally, high-risk investments are expected to bring higher returns but there may be a delay in the timeline of returns as it takes time to stabilize the property. Whereas low-risk investments yield a more stable, which may be immediate. You can typically see an ROI for real estate syndication within a few months to years. It is important to match the timeline of returns with investors’ financial goals, and we help you identify what opportunities of ours would match your specific goals.
As far as cash distribution is concerned, it depends on the terms of your agreement and syndication structure but you can usually expect quarterly cash flow distributions and a larger return when the property is sold or refinanced.
With One River Capital we vet all of the deals to make sure they are something we ourselves are investing in, because we are, and we clearly present the syndication terms to you so you know what to expect. Our projections are always realistic and based on in-depth research.
Yes, syndication investing can help supplement retirement income. Syndication investments offer the opportunity to purchase a piece of an income-generating real estate property with other investors. These investments provide quarterly returns that could be used to cover living expenses and boost your retirement income.
Yes, you can invest in a real estate syndication if you are a foreigner, immigrant, or non-US citizen! However, there may be additional rules and regulations. For example, foreign investors may need to navigate different regulatory requirements or taxes. Additionally, foreign investors might need to open a US-based bank account or form an LLC in order to invest in the syndicate.
It’s important to research the country’s laws where you plan to invest and speak with a lawyer and tax advisor before investing. At One River Capital we help you navigate what can at times be a complicated process, so you don’t miss out on the opportunity to invest and create your life by design.
Ready for passive real estate investing to help you create the freedom you’ve been dreaming of?
We reached financial freedom through real estate investing, and you absolutely can too. We can’t wait to help you chart your path to financial freedom and generational wealth through passive syndication investing.