Building a real estate portfolio can be a very demanding venture. Besides investing a significant amount of money and resources, you might also be required to invest a lot of time as a real estate investor. For example, owning rental properties could involve tasks like finding the right location and property, applying for a mortgage, finding tenants, collecting rent, hiring vendors for maintenance and filing taxes.
However, if you have time constraints, consider passive real estate investing. As a passive real estate investor, you will not be involved in the day-to-day running of properties. Your only role is to contribute resources to the investment. Common passive real estate investing strategies include real estate investment trusts (REITs), real estate crowdfunding and trust deed investments. Another great way to get in the game is via real estate partnerships.
What are real estate partnerships?
Also referred to as real estate syndications, these are partnerships where several investors pool together their resources to jointly buy a large property. Apartments, single-family homes, land, multi family homes and condos are some of the assets you can acquire via partnerships.
A real estate syndication involves two main parties; the syndicator and the passive investor.
The real estate syndicator
Also referred to as the 'sponsor' or 'general partner', the real estate syndicator is an individual is an individual or company that has significant experiences in the housing market, like Regalway Homes! They are responsible for the following:
Finding property and conducting due diligence
Negotiating with the seller
Arranging financing
Raising capital for the deal
Finding investors
Working with property managers
Asset management
Benefits of real estate partnerships
Stress-free – Investors don’t have to worry about repairs or dealing with difficult tenants
Passive income – Investors earn quarterly or monthly income distributions, as well as a return when the property is sold.
Appreciation – Since real estate typically increases in value over time, investors can earn a higher return on investment (ROI) in the long term.
Diversification – Investors can diversify their portfolio across multiple real estate partnerships.
Control – Unlike crowdfunding platforms or REITs, investors have the freedom to select which specific assets they want to invest in.
Conclusion
While real estate syndication comes with its share of risks, it is an investment strategy worth exploring. If you would like to discuss partnership opportunities, get in touch with Regalway Homes.