- Cash Flow
- Syndicators structure deals where investors are to receive ongoing monthly or quarterly distributions from the syndication based on their capital contribution in the deal.
- Passive Income
- You do not need to trade your time for money. There is no decision-making in the heavy lifting of owning and running the property. The passive investor will receive monthly/quarterly distributions and updates as the operator execute the business plan
- Tax Benefits
- Investors benefit from depreciation which allows passive investors to limit taxes on the cash flow distributions they receive. It will show up as a paper loss that effectively offsets the cash flow generated on an investment property by reducing the income thus lowering the taxes owed.
- Investors will see the largest payday when the property has been refinanced or sold. They will receive most, if not all capital back when refinanced and continue enjoying the cash flows generated by the property. When it is sold, investors will see a significant profit on their initial investment.
- Inflation Hedge
- As inflation increases, so does the value of the property. Investors will be able to watch their investments increase in value as the property appreciates and rent leases increase, improving the revenue and making it one of the strongest hedges against inflation
- Strong risk-adjusted return
- The risk of losing capital vs. the reward of making a return on your capital is strong. Real estate is a tangible asset and people will always need a place to live. In a recession, office or retail tends to decrease when the economy slows. In comparison, during a downturn, people tend to sell their homes and move into apartments.
- Based on the market and economic conditions, the value of the property will appreciate over time. There is also forced appreciation where operators have the opportunity to make improvements and add value to bring rents up to the market.
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