REAL ESTATE SYNDICATION
What is Real Estate Syndication?
When done right real estate syndication can be a win-win investment for all parties involved. The simplest way to describe real estate syndication is the pooling of funds from an investor or a number of investors with the purpose of employing those funds into a common real estate project. Real estate syndication is very similar to real estate partnerships, and the role of the investor is similar to that of REITs (Real Estate Investment Trusts).
One of the biggest benefits to this type of investment: A triple net property passes many costs on to tenants that normal investors cannot pass on such as 1) taxes, 2) insurance, 3) property maintenance and even insurance.
Why Weitz Commercial for your Syndication Investment?
An investor role is passive, we do the hard work, so you see a greater return
Work with a team of CPAs to maximize tax savings / benefits
Access to buyers and properties that many can’t obtain on their own
Even with minimal funds an investor can diversify across multiple properties
No fees for acquisition of the property
HOW IT WORKS
There are two roles in a real estate syndication: the investors and the syndicator.
They invest their money in a real estate project. The role of the investor in a real estate syndication is a passive one: he/she is not required to participate in the running or management of the investment property, and his/her involvement in the project is minimal.
They oversee and manage the investment project. They earn a percentage of the project’s profits based on a predetermined and agreed upon rate that is split between all investors and the syndicator.
“Dividends” / Quarterly payments:
Just like any other real estate investment, the main purpose of syndication is to make a profit for both the syndicator and the investors. We distribute all net income of the property quarterly and share all depreciation deductions annually.
When it comes to the investors, the way they make money from the syndication is very simple: they earn a percentage of the profits made from the project that they have invested in based on the share of their contribution towards the project and take part in all capital appreciation during the term of the syndication.
Acquisition costs; Our group charges no fees for acquisition of the property other than typical commissions paid by the seller of properties we purchase on behalf of the syndication.
Asset Management Fees:
A Management Fee of 1% of the property value will be paid annually to Weitz Commercial. It is the responsibility of our team as a syndicator to manage the investment property and maintain it. We will make quarterly dividend payments to investors based on the operating income of the investment. All financials are provided with the utmost transparency for investors.
Contact us today for the latest retail syndication opportunities.