Introduction to Real Estate Syndications

Real estate syndications are group investments. What that means is that there are General Partners a.k.a the deal sponsors (that’s us at PCRP Group and our partners) and the Limited Partners a.k.a passive investors. Those are the main roles in syndication.

This group of investors forms a partnership together through an entity – usually a limited liability company (LLC) – to pool capital so that we have more buying power to purchase larger commercial assets. This can also give us better economies of scale and better returns.

 

You as a passive investor also get to capitalize on the decades and decades of the combined deal sponsor’s track record, past performance, expertise, connections, and knowledge.

 

You become a co-owner of the real estate asset unlike investing in a REIT (real estate investment trust). There are distinct differences between REITs and real estate syndications, but actual ownership of the real estate is one of the biggest distinctions.

 

We as the deal sponsors take care of ALL of the day-to-day operations and management of the real estate on your behalf as a passive investor.

 

You as the passive investor just collect the passive income cash flow distributions, participate in any tax benefits, and receive a portion of the equity when the asset is sold.

 

You get all of the benefits of real estate investing without any of the hassles.

We provide you with passive real estate investments so you can start to live your best life.

Experienced
Partners

We locate and vet experienced deal sponsor-partners who have an extensive, proven track record of success, and who are acquiring cash-flowing assets in fast-growing U.S. markets.

Acquire
Prime Assets

We then partner with these teams to acquire these commercial assets located in more climate-resilient markets nationwide to help mitigate risk and maximize investment for our individual investors.

Partner with Our
Passive Investors

Once we locate an asset that meets our stringent criteria, we then present these exceptional investment opportunities to you - our investors - to passively invest in these assets alongside us.

Learn how we can help you Earn Passively & Live Abundantly Join the PCRP Passive Investor Club. It’s Free!

How to know if real estate syndications are right for you

A great way to determine if real estate syndications are right for you is to review your current investment plan.

Who is eligible to invest in real estate syndications?

Most real estate syndication deals are only offered to accredited investors through a 506c offering. An accredited investor is someone who has an annual income of $200K ($300K a year jointly) or has $1MM in net worth – not including your primary home.

A non-accredited investor (sophisticated investor) can still invest in real estate syndications, but they can only invest in a 506b offering.

 

Because those offerings are not allowed to be released to the general public, non-accredited investors will need to know deal sponsors or be connected in other ways to invest in these types of syndication offerings.

What are the projected returns?

Every real estate syndicate has different structures so the projected real estate syndication returns depend on many factors. The types of returns, however, is something you should know if you’re going to invest in commercial real estate syndications.

When you invest in these types of investments such as a multifamily syndication to buy an apartment building, you can expect to receive a preferred return in most cases.

Typically preferred returns can usually range from 5% – 9%. This is your passive income cash flow distributions you can expect with a preferred return. Additionally, you receive a portion of the profits from the sale of the property.

The average annual return (AAR) varies and is never guaranteed, but from the preferred return combined with the profits at sale we often see roughly 15-20% (AAR).

What are some of the tax benefits of real estate investing?

One of the biggest benefits of passive real estate investments is the tax advantages.

As limited partners and passive investors in the real estate syndication deals you are part of a limited liability company (LLC) that has purchased shares to own the underlying asset.

The LLC gives you pass-through taxation and depreciation allowances, which can significantly reduce your taxable income.

Tax strategies that use cost segregation, which is used frequently with commercial real estate investing, can accelerate paper losses which can offset gains from investments and other income.

Passive real estate investments may allow you to reduce your tax burden significantly, but we always suggest that you consult with your financial advisor or tax consultant.

What are the investment risks with real estate?

Real estate investing is like any other type of investment, it has its risks. That’s why it’s important that you do your due diligence in vetting a real estate syndication sponsor well before you invest your hard-earned capital.

 

Another risk real estate investors can have is investing a lot of capital into one rental property or even one market. Diversification is an integral way to mitigate risk as much as possible.

 

That’s why real estate syndications are such a great investment vehicle. You can invest in a variety of real estate projects, asset investment types, asset classes, and even real estate markets.

 

This helps you spread risk across multiple markets and various real estate properties. This mitigates risk and helps to keep your passive investments and income streams more stable.

 

Your liability is limited to your initial investment. Nothing more. You have to assess your risk tolerance, however, with any investment you make.

How to invest in real estate syndications

Step - By - Step

The bad news is, time flies, but the good news is,

You're the pilot.

Here's How It Works

Start Here

Apply for the PCRP Passive Investor Club - It's Free! You'll be joining a like-minded community looking to build passive income streams from real estate investments.

Learn

You can learn more about passive investing to see if real estate syndications are right for you. You will receive resources to help you along the way.

Invest

You'll be presented with great investment opportunities. When you're ready to start earning passive income, you can invest alongside us. We'll guide you step-by-step.

Enjoy

Your work is done. Now, it's time for you to collect the cash flow distributions and enjoy all of the benefits that real estate has to offer.

Ready to Get Started?

Passive investing in commercial real estate syndications is a great way for busy professionals to build wealth and gain financial freedom.

 

Building passive income streams through real estate can enable you to live your life on your own terms.

 

So if you’re tired of not being able to call the shots and live life your way, start with this first step…..

 

To get started, just sign up for the PCRP Passive Investor Club – It’s Free!

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Sign up for a FREE 7 Day Passive Real Estate Investing 101 Video Course that will help you get started investing passively in real estate without the hassles of being a landlord.

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