blog post #4 -- What is a real estate syndication?

Many of you have asked what I mean when I say I help people safeguard and grow their wealth in real assets through real estate syndications.

So what exactly are real estate syndications?

First, let’s begin with the legal definition of a syndication. Black’s Law Dictionary defines it as “A group organized for a common purpose, esp., an association formed to promote a common interest or carry out a particular business transaction, in which the members are mutually interested.”

Simply put, in the case of real estate investing, we organize a group (in the form of a corporation or LLC), purchase an asset, then divide the profit.

The asset can be raw land, a house, a group of houses, an apartment building, an industrial park, a shopping mall… you get the picture. In fact, the vast majority of commercial and residential multi-family homes across the country are owned by syndications.

While syndications, or private placements, have always been available, it wasn’t until 2009, when SEC Rule 506(b) of Regulation D was enacted that they increased in popularity. For many of us, this is still a brand-new way to invest.

I first got involved with real estate syndications after witnessing firsthand the benefits of real estate compared to the typical Wall St. investment options of stocks, bonds, mutual funds, and the like.

5 Great Reasons to Invest in Real Estate Syndications

  • Ease of Investing: Receive the benefits of real estate without having to get your hands dirty or get a call from a tenant. True “hands-off” real estate investing.
  • Diversification: Investing in tangible real estate has little to no correlation to Wall Street or world markets.
  • Passive Income: Unlike stocks and bonds, real estate syndications generate cash flow for investors from the income generated by the property, often beginning on day one!
  • Extraordinary Tax Benefits: Investors often get Lowered Capital Gains through tax incentives such as depreciation. Income received can potentially be “Tax-Free Plus.”
  • Socially Responsible Investing: Let your money align with your values! Investing in Real Estate has a direct impact in the real world by revitalizing communities.

The bottom line is this: investing in real estate syndications is one of the BEST passive investments available to the average investor. 

Our mission is to help passive investors become financially free by providing high-quality alternative investments. If we can help you in that way, it would be an honor to do so. Please feel free to schedule some time to chat!

Thanks and I look forward to connecting soon!