syndication: Intro To Group Real Estate Investment
- 01/08/12 04:17 PM
Ever wonder how someone is able to purchase that skyscraper office building downtown, or the 300+ unit apartment complex down the street for multi millions of dollars? Well, I can tell you, it’s not typically someONE that purchases these properties it is usually a group. It’s an age old concept, if something costs $200,000 but you only have $100,000; then find another person with $100,000 and partner. When it comes to large properties that require say, $1,000,000 to purchase, and you partner with several others in a group investment it is called syndication. Syndication can add … (1 comments)
syndication: Structure of a Group Investment
- 01/08/12 04:14 PM
By now hopefully you’ve read “Intro to Group Investment in Real Estate” and have additional interest. By now you are likely wondering how it is actually structured, how you make your money, and when. Be sure to read on to “Participating in a Group Investment” as well. Every group investment (Syndication) is structured a bit differently. How profits, losses and management are handled is always determined and agreed to before the group is ever formed, so be sure to read the Private Placement Memorandum (PPM - basically a business plan for the property) and operating agreement … (1 comments)
syndication: Participating in a Group Investment
- 01/08/12 04:11 PM
Before reading this article, be sure to first read “Intro to Group Real Estate Investment” and “The Group Investment Structure” A group investment in real estate (also called a Syndication) typically is considered a security under Securities and Exchange Commission guidelines. Because it is a security many laws govern how such an offering can be offered and who can participate in them. One option that allows anyone and everyone to participate in a group property investment is the full registration as a public offering with the SEC, unfortunately this involves months if not years and HUNDREDS of thousands … (0 comments)
syndication: Disadvantages of Apartment Investing and How to Overcome Them
- 12/24/11 12:42 PM
Following up on my previous post “Advantages of Multi-Family Property Investing”, nothing is ever risk free and there are two sides to EVERY investment. How each investor overcomes or mitigates a disadvantage is what separates the mediocre from the great investments. The following are some things to consider before investing in Multifamily Property. 1. Investment amount: Although the per unit cost is typically small, apartments are only sold as a whole, making the entry cost to purchase a building higher than some are willing or able to meet. Since the larger the property the more economies of scale there … (0 comments)
syndication: Advantages of Investing in Apartment Complexes
- 12/24/11 12:21 PM
Single Family homes offer good returns and excellent potential for appreciation. As demand for housing raises so does the price of your investment property. So long as your home is in a desirable area for an end user you should see great appreciation as the market recovers from this most recent downturn. Appreciation however, is completely dependent on the subjective desires and financial ability of the “perfect buyer” and directly related to uncontrollable market forces. Multi-Family apartment property however, while partially driven by subjective value assessments; is more heavily driven by objective facts that can be … (0 comments)
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