Multi-Family Real Estate May 18, 2024

How You Receive Returns on Your Investments

If you’ve considered investing in real estate, chances are that you’d want to reap the benefits without the hands-on management. This makes you a passive investor. Your efforts are limited to providing the capital, and it becomes our responsibility to make sure you get maximum returns on your investment.

However, in this process, it becomes extremely crucial for you to understand the various channels through which you may acquire your returns.

Multiple Avenues to Your Wealth

As a passive investor, you receive the returns on your investments through various channels, depending on the specific type of investment and the strategy you choose.

Even with limited liquidity, real estate investments offer three proven channels for regaining your initial investment and turning a profit

Quarterly Distributions

Investing in a real estate syndication allows you to receive quarterly distributions directly from the property’s net operating income. It’s like owning a piece of the pie and getting paid your slice every quarter.

Our suggestion? Aim for a 6-9% cash-on-cash return, so for every $100,000 you invest, you’ll receive roughly $7,000 annually. Calculate the return on your investment here.

Refinance Rewards

Sometimes, you benefit from the investment even before the final sale. Through strategic refinancing, as your syndicators, we can identify additional value in the property, allowing us to return some of your capital even before the end of the investment period.

As investors, this frees up your capital and allows you to pursue other investment opportunities while maintaining your original ownership percentage in the project.

Sales Profits and Beyond

When the investment cycle reaches its peak, the property is sold. After expenses and debt are paid, profits are distributed proportionately between you (the investor) and the syndication team. This final payout can be sizeable, making your passive income journey even better.

Passive Doesn’t Mean Passive Returns

As is the case with any investment, active research and careful consideration are extremely important. With the right strategy, passive real estate can be a powerful way to generate income, diversify your portfolio, and build wealth over time.

It starts with choosing a reputable syndication team that understands the potential risks associated with real estate investments and your distinct goals.