Passive Property Investment Can Be Win For All With a Proper Syndicator


I started out in the property sector when I came to New York. Actually, I first ventured into digital advertising, moving later to real estate. One thing I wanted to make sure of is that I was treating all people with respect, especially those living in my properties.

Nowadays, I am a syndicator and a passive real estate investor. This fuels my business decisions. My property syndication firm purchases and runs multi-family apartment buildings. Thus, I handle various parts of the investment process as a general partner, and my limited partners obtain the needed capital to buy the asset. I pick partners with care and invest in real estate that will provide a win for all parties included. All of the deals I make must bring value to investors and residents.

Select The Right Advisor for a Difference

Syndicators all have their own strategies for the market, so it is important to select someone whose investment strategy and goals are the same as yours. Certain syndicators are higher risk and higher yield, some are more traditional and some are more moderate when speaking of returns. All of my deals are underwritten to bring a hefty profit, but I think the result must contain more than just cash. I’m setting out on a different path for property investments as a mean of advocacy, utilizing my investments, shaping my deals and handling my assets in a way that enhances the quality of life for all of those in the fold.

If you’re involved in passive property investments, and everybody should be since it is a great and satisfying journey, here’s some simple knowledge that will make your path to success as you want it to be, just a tad easier.

Passive Property Investing 101

The property sector, at 35 percent, is the most preferred long-term investment by citizens in the States, when pitted against stocks (21 percent), savings accounts (17 percent) and gold (16 percent), surveys reveal.

When you think about investing in properties for the first time, you might think of an active investment, for instance directly buying a house, making a profit by flipping it or renting it out for steady money. If you’re a seasoned property investor, this strategy can be rewarding and lucrative, but, to put it mildly, it takes substantially more risk and effort.

Passive property investments, on one side, requires virtually no involvement other than the first analysis and financial investment. You may invest passively via syndications, REITs, property exchange-traded funds or crowdfunding transactions, gain access to high earnings chances with low risk and transparency, and zero hands-on work.

Investing in Real Estate Syndications: The Greater Possibilities

When you invest in a property syndication, you gather your money with other limited partners so that you can purchase bigger buildings than you can afford on an individual basis. Those are passive investments since the general partner controls all things – from the acquisition to the daily obligation to the ultimate sale. Everything you’ve got to do is invest and collect.

I have myself invested in over 5,000 apartment units in locations all over the States, and in 75 percent of those transactions, I am a passive investor. This way, I have built a diversified portfolio of properties and I earn steady income each month or quarter from various passive income streams.

Initial Important Measures

Before you start out as a passive real estate investor, you are going to need to do some front-end research to determine 3 significant things: the operator, the marketplace and the contract.

The Operator

This should be a person that sees eye to eye with you. Someone who values transparency when it comes to detailed docs related to the marketplace, the contract and the anticipated profit. Be thorough in veryfing your syndicator to make sure this is someone you can lean onto. From where do you know them, do they have a background in the property business? Do they have the same ideals as you and have the equal idea of success?

The Marketplace

Is the market rising, increasing, standing in one place or getting smaller? Search for things such as employment growth, rent increases and regional capitalization. Expanding marketplaces are more competitive, but you will aim to invest in marketplaces that are at minimum stable or slightly increasing.

The Deal

What’s the business strategy for the deal? Is the operator intending to keep the asset until it is sold, or are they going to add value and psuh for appreciation?

If you carefully go through these steps, conduct proper analysis and truly comprehend your aims and ideas, passive investing can lead to financial independability while at the same time bring up the quality of life of others.