Benefits of Investing
A real estate syndicate is a group of investors that pool their resources to invest in real estate together. By investing in a real estate syndicate, you can benefit from the resources, experience and expertise of the other syndicate members, and invest in properties beyond your individual capabilities.
Other benefits of investing with a real estate syndicate include:
The syndicator is a specialist in real estate investing.
By investing in a real estate syndicate you take advantage of the experience of Poe Companies. Poe Companies is a specialist with experience investing in real estate for the benefits of the investors. Poe Companies knowledge and skills of finding, acquiring, managing and selling real estate to produce a profit is made available to investors. Poe Companies also brings professional management to the investment.
A syndicate pools resources and thus allows acquisition of larger properties.
The syndicator by gathering a number of investors together makes it possible for the investors to buy a larger property then they could on their own. Larger multi-unit properties are less risky as the more tenets the property has, the less a single vacancy affects the income stream.
Larger properties allow for economies of scale, making professional management affordable that might not be available with smaller properties. The management fees are less as a percent of income with the larger properties.
Tax advantages pass through to the investors.
Some tax advantages are available. The syndicator sets up the syndicate to allow any tax advantages to pass through to the investors.
A syndicate can make profits from rental income.
A real estate syndicate owning income producing property makes profits from the monthly income. Earnings are distributed to the members of the syndicate in accordance with the terms of the syndicate agreement.
A syndicate can make profits from capital gains.
The syndicate can make a profit from increases in the value of the property over time. Improvements to the property that increase rents increase the value of the property at resale. If borrowed money is part of the deal, any reduction of principal on the real estate note(s) increases the rate of return on the investment at capital gains tax rates.
A syndicate can use leverage to increase returns.
The use of borrowed funds by the syndicate can increase the return to the members, while limiting the risk to the investors to the amount of their investment.
Freedom from management for the investors.
Responsibility for the everyday management of the syndicate and the syndicated property is assumed by the syndicate or those he directs.
Limited liability for investors.
A syndicate can protect investor members from liability.