What are Real Estate Syndications?
If you’ve ever invested in rental properties, you’re probably familiar with the headaches that go along with owning real estate: tenant turnover, surprise repairs, piles of paperwork, and more.
You might be thinking, “Sure, the cash flow, appreciation, and tax benefits of owning real estate are great…but who wants to deal with the hassles of being a landlord?”
That’s where real estate syndications (also known as group investments) come in. Passive investment through real estate syndication offers all the benefits of investing in real estate with none of the hassles of property management.
The Benefits of Real Estate Syndications
When you invest passively in a real estate syndication, you invest your money alongside dozens of other passive investors and let the general partners do the heavy lifting of managing the property.
As a passive investor, you won’t have any active responsibilities in the investment. Instead, you’ll be able to sit back and enjoy the benefits of ongoing cash flow and appreciation without having to do any of the day-to-day work.
Real estate syndication investors receive tremendous tax advantages, including accelerated depreciation and cost segregation. As a passive investor, you’ll receive a Schedule K-1 tax form every year, which you’ll include with your tax filings.
Commercial properties are valued based on the income they produce; therefore, Progressive Properties Of Greenville only invests in assets with value-add potential. We’ll improve the property after purchase, increasing the net operating income and the property value.
As a limited partner in a real estate syndication, your personal liability is limited. That means that your assets and wealth are protected, no matter what happens with a particular investment.