There is no shortage of opportunity within the real estate market, but for many getting into the investment game is barred by a lack of resources. You can have all the knowledge and skills in your arsenal, but without the resources to fund your investments you won’t get very far. Fortunately for hopeful investors, real estate syndication provides an opportunity to grow your portfolio without increasing your risk.
What is Real Estate Syndication?
There is a difference between funds and real estate syndication. For examples, with funds, many investors are pooling their capital and investing in many assets – this could be a single raise, or an open ended fund that allows continual new investors so that more assets are acquired or that allows easier liquidation for investors.
On the other hand, real estate syndication sees many investors pooling their capital and investing in one single asset, for example, a specific apartment complex or self-storage facility. Typically, these are a one-time raise of capital and all of the investors are in that specific deal for the entire life of the project.
What are the Benefits of Real Estate Syndication?
Real estate syndication provides you with a stream of passive investment and is way less hands on than if you were to go and buy a single family home, which would be direct ownership. With single family home ownership, you are responsible if anything goes wrong. Syndications are must more hands off – you invest then step back and let your investment reward you with passive cash flow without having to worry about things like home maintenance.
It’s true that capital assets in a real estate syndication portfolio can depreciate, but depreciation is actually a benefit. A syndication would own real estate, and it passes through as a partnership on a tax level, therefore passing through depreciation to investors and providing the potential for very strong returns.
Why Go it Alone?
If you want to be successful at something, it is always said that you should look at someone who has successfully done what you want to do, and do what they did. Why create mediocrity when you can copy genius? When it comes to real estate, learning from those who are already successful is especially important. At Freedom Founders, you have the advantage of connecting with those who have made real estate syndication part of their path to financial freedom.
