Invest Your Hard Earned Money For Better Returns.
What We Do
We help busy professionals like yourself invest in hassle-free income producing real estate that ultimately creates more choices to live life on your own terms!
We select experienced operator partners that invest in select niches that have a history of strong cash flows and are projected to continue to perform well, such as:
- Multi-family Apartments
- Self Storage Units
- Mobile Home Parks
- Assisted Living
- Target investments that are expected to deliver attractive risk-adjusted returns over the life of the project.
- Favor strong growth markets and areas in the path of progress.
- Focus on value-add, repositioning, and rebranding projects to create attractive upsides and limit downside risk.
- Target holding periods for investors of ~5 years with opportunities for refinancing cash-outs once significant value is created
WE PARTNER WITH LIKE-MINDED INDIVIDUALS
We leverage established relationships with industry experts to provide our clients access to exclusive investment opportunities typically only available to investors with significant capital contributions. Our mission is to offer institutional quality investments to ordinary investors. Because we believe a diverse portfolio is a strong portfolio, we don’t focus on a single industry or asset type. We offer a variety of investments to ordinary investors.
WE ARE FORCE MULTIPLIERS
WE TAKE A LONG-TERM VIEW
We take a long-term view toward investing. In contrast to traditional investments in the stock market, which are largely at the whim of quarterly earnings projections, we strive to build investment portfolios that can weather all market conditions.
How, exactly, does a syndicated deal work? Real estate syndication is a simple transaction between a Sponsor and a group of1 investors. You know how when two guys open up a bar together, one has more money to invest and the other has a lot of experience working in and managing bars? The guy with the bar experience (the Sponsor) finds a bar to open and arranges everything, while the other guy (the investor) simply invests his money. The guy with the bar experience naturally runs the bar, and, as a result, gets a paycheck for his work. Both get a share of the profits based on time and money invested.
The basics of real estate syndication aren’t all that different from two guys opening a bar together. As the manager and operator of the deal, the Sponsor invests the sweat equity, including scouting out the property, raising funds and acquiring and managing the investment property’s day-to-day operations, while the investors provide most of the financial equity. The Sponsor is usually responsible for investing anywhere from 5-20% of the total required equity capital, while investors put in between 80-95% of the total.
Syndication’s are simple to set up and come with built-in protections for all parties. They’re usually structured as a Limited Liability Company or a Limited Partnership with the Sponsor participating as the General Partner or Manager and the investors participating as limited partners or passive members. The rights of the Sponsor and Investors, including rights to distributions, voting rights, and the Sponsor’s rights to fees for managing the investment, are set forth in the LLC Operating Agreement or LP Partnership Agreement.
How, exactly, do investors make money when participating in a real estate syndication? Rental income and property appreciation. Rental income from a syndicated property is distributed to investors from the Sponsor on a monthly or quarterly basis according to preset terms. A property’s value usually appreciates over time, so investors can net higher rents and earn larger profits when the property is sold.
When and how does everyone get paid? Payment depends upon the time the investment needs to mature; some types of syndication’s are over within 6-12 months while others can take 7-10 years. Everyone who invests receives some share of the profits. Also, at the deal’s beginning, the Sponsor may earn an average acquisition fee of 1% (although it can be anywhere from .5 to 2% depending upon the transaction). Before a Sponsor shares in the profits for their work as manager and promoter, all investors receive what is called a ‘preferred return.’ The preferred return is a benchmark payment distributed to all investors that is usually about 5-10% annually of the initial money invested.
Real estate syndication’s are structured so that the sponsor is motivated to ensure the investment performs well for everyone. Let’s look at an example of a preferred return. If you’re a passive investor who invests 50k in a deal with a 10% preferred return, you could take home 5k each year once the property earns enough money to make payouts possible. After each investor receives a preferred return, the remaining money is distributed between the Sponsor and the investors based on the syndication’s profit split structure. If, for example, the profit split structure is 70/30 — investors net 70% of the profits after receiving their preferred returns and the sponsor nets 30% after the preferred return — here’s an example: after everyone receives their preferred return in a 70/30 deal, and there is 1 million remaining, the investors would receive 700k and the Sponsor would receive 300k.
Northern Cross (Currently Funding)
398 Units | Fort Worth, TX
The Wurzbach Portfolio – Bitterwood Ranch – Fifth Avenue
A Value-Add Multifamily Investment
Key West Self Storage (Funded and closed)
505 Storage Units + Expansion Units | Key West, FL
Send a Message
If you have questions, you could always just send us a quick message with any questions you might have with this form:
Phone: (888) 813-5432