faqs

A real estate syndication is an investment vehicle that allows for passive investors (called limited partners) to invest into a real estate deal managed by general partners.

After investing, the general partners operate the property while sending distributions to the limited partners. This allows for the limited partners to be truly passive in their investment and not be responsible for the day-to-day management.

When investing into a syndication (typically a larger deal), it allows for smaller retail investors to pool their resources and achieve economies of scale, such as buying an apartment building.

Some of the benefits are higher returns (when compared to traditional investments like the stock market), a lower risk profile, tax benefits, inflation hedge, and a truly passive investment.

A real estate syndication is structured as a limited liability company (LLC). It allows for passive investors to invest into a deal, limiting their liability to what they put into the deal. This means that the losses are limited to what they invest into a particular deal. The general partners are the ones who actually operate the deal.

The general partners are Elevating Talents partners or joint venture partners that operate the deal, make sure the asset performs, and work to resolve any issues that come up.

$50,000. Many will put the minimum investment in, but some with higher net worth will consider putting more in (often $100k-$500k).

We typically use a “value add” strategy. This means we buy a property that we see some upside (E.g. being able to increase rents by $150 per unit with some upgrades). We hold the property for 5 to 7 years and then sell.

The process begins with having investors join our investment community before we offer a deal. This keeps us compliant with the legal rules (Sec 506B) and also allows us to develop a relationship with each potential investor. Once you join our investor community, we can present you with deals when they become available (typically 3-5 deals a year).

When we have a new deal available, we will email all investors who are a part of our investor club and deals fill up on a first come, first served basis.

After investing in a deal, you will receive a K-1 tax form (a common form handled by CPAs) by mid-March.

No. We allow for some sophisticated, non-accredited investors in our deals on a liimited basis.

While this is a great investment class and we do everything we can to reduce risk, there are some risks to be aware of. Risks are disclosed specific to each deal, but the primary risk is loss of capital (underwriting or performance inaccuracies and other reasons).

Yes. However, there are only certain types of retirement accounts that allow for real estate syndicaton investments. It’s important to look for retirement account that avoid UBIT (a tax on debt financed real estate inside you retirement account) and allow for checkbook control. Our preferred account to invest into retirement accounts in the QRP.