Syndication is the pooling of investor money where the investor is typically a passive limited partner. The other partner to the deal is the managing member, or active partner that puts the deal together and implements the business plan to provide a return for the benefit of all investors. General Partner (GP), managing member, and Sponsor are often used interchangeably.

•  An individual with income in excess of $200,000 per year, or a joint spousal income in excess of $300,000 per year, in each of the last two years and reasonably expects to maintain the same level of income.
• A net worth exceeding $ 1 million, either individually or jointly with his or her spouse.
• A trust, partnership, or company with total assets in excess of $5 million.

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It depends on the fund. Some of our offerings are released under rule 506(b) which allows for both accredited and non-accredited investors and some are released under rule 506(c) which allows for accredited investors only.

Now when an investment opportunity arises, , you will receive correspondence about the offering, which will detail property type, investment objectives, and estimated return. If the investment is of interest, please reach out and we will provide you access to the necessary investment documents for your review and completion.

You can see a list of all our prior investments on the website. Prior performance tables are available for review with each offering.

Each offering is slightly different however typically minimum investment amounts are $25,000-$100,000

Plan on a 10 year hold period.  The shortest time we have owned a property was 84 days, and the longest was completed in 1989 and still operating.

Distribution payments are sent, in June and December.

The short answer is no. On occasion, Investors may need to sell before the end of the holding period. Should this occur we will provide our opinion of valuation, the investor then determines their asking price, and we will then send out correspondence to the other investors in that offering advising them of the availability for additional investment. Should those investors all pass, we will send it to the members of our other offerings.

Typical cash on cash returns are projected in the 8-10% range and an internal rate of return (IRR) of 16 – 20% range.   In a value add or new construction syndication, the annual return may be deceivingly lower than the overall IRR (Internal Rate of Return) as a large part of the investor returns come from sale proceeds.

Investing in commercial real estate allows you to take advantage of current tax benefits  which provide sheltered or partially sheltered cash flow, by utilizing the following accounting practices:

1. Depreciation of the hard assets
2. Amortization of debt costs, organization costs, leasing expenses and such other related items.
3. Gains from sale are taxed at the prevailing capital gains tax rate.
4. Rental income is not subject to social security and Medicare deductions.

Monthly financials will be uploaded to the investor portal. Furthermore year end financials, tax returns, K-1’s, and annual video updates will be uploaded annually.

Typically our offerings utilize debt to increase cash on cash returns.  Debt ranges from 40%-70% loan to value. Investors are limited liability partners, so your risk is limited to your initial investment. On occasion lenders require a personal guarantee to secure financing. When this is required one of the sponsors will personally guarantee the debt.

Yes, consult your custodian.

You cannot 1031 into our deals or out of our deals since you are technically purchasing units of our LLC and not actually the real estate itself. Occasionally we may have an offering in an Opportunity Zone, which will allow you to invest the gains portion from your prior sale.

We will always invest our money with our limited liability partners. The amount of our minimum investment will be disclosed upfront.

This varies with each offering; however the general structure remains the same.  The sponsor receives an acquisition fee, implied equity, and a portion of cashflows from operations and sale. These fees are disclosed in each offering memorandum.

It ranges from approximately 5-40 depending on the size of the offering.

Financial advisors will generally recommend not les than 10% and not more than 40% of net worth should be invested in value be tied to commercial real estate. Lower net worth individuals will have less exposure to commercial real estate as a percentage of their total net worth, and higher net worth individuals will typically have high percentage of their total net worth tied to commercial real estate.

This favors the limited partner. It essentially means that the limited partners need to receive their annual preferred return on an investment before any distributions to the managing members.