The best ways to invest your hard-earned $100,000 in Commercial Real Estate
Commercial real estate investing is one of the most tried and true ways to profit in real estate. But how does someone with little to no experience in commercial real estate investing get started?
Real estate syndications. If you have the capital and are looking to make a passive income, investing in real estate syndications could be for you.
What is real estate syndication?
A real estate syndication is a type of real estate investment that involves multiple investors pooling their funds to purchase real estate property.
Apartment complexes, commercial buildings, and storage units are a few types of properties that real estate syndications tend to invest in.
Who is involved in a real estate syndication?
Syndications consist of two parties: the syndicator and the limited partners.
The syndicator is the company or organization sponsoring this investment. They are often seasoned investors with years of experience investing in real estate. The syndicator is the one to seek out profitable investment opportunities, purchase the property, and manage operations.
Limited partners are passive investors that provide capital to a syndicator to purchase an investment property.
What does it mean to be a limited partner in syndication?
As a limited partner in syndication, your role is to provide capital, alongside others doing the same, to purchase a real estate investment property.
After this investment, your active role is finished. You aren’t responsible for the day-to-day maintenance or operations. Your job is to sit back and profit from the income earned on the property. Investing in real estate syndication is one of the few true forms of passive real estate investing.
Who are real estate syndications for?
Real estate syndications are for everyone. No matter your experience or familiarity with real estate, it is an opportunity for all.
Many hopeful real estate investors are turned off by the responsibilities and required know-how to run Airbnbs, rentals, and house flips. These investment strategies, while profitable, are often more involved and risky.
With real estate syndications, the passive investor can count on the expertise and experience of the syndicator to find the best and most profitable investment opportunities. For investors with little to no experience, syndications are an ideal investment strategy.
Benefits of investing in real estate syndication
There are a variety of reasons to invest in real estate syndications. Here are just some of the benefits:
- Passive income: After your initial investment, the property works for you. You make money while you sleep and get paid out from income distributions.
- Tax benefits: Real estate investors benefit from several tax deductions.
- Appreciation: Real estate generally always appreciates, meaning your ROI increases over time.
- Diversification: It’s always wise to keep your eggs in different baskets. As a limited partner in a real estate syndication, you’re spreading your assets through various investing avenues.
- Lower barrier to entry: You don’t need to have any experience to invest in a real estate syndication. This makes it a more accessible form of real estate investing.
- Lower risk: In many cases, real estate syndications can be lower risk than other ways of investing in real estate. You don’t have to tend to the property like you would an Airbnb or rental, and you aren’t the only one responsible for its success.
Rx Real Estate Investment: Real estate investing for pharmacists, by pharmacists.
At RxREI, we are a team of pharmaceutical and healthcare professionals that understand the challenges you face, both professionally and financially.
That’s why we created Rx Real Estate Investment. We put power back in your hands by making it possible for you to invest in commercial real estate.
We know you already have the aspiration and drive to achieve financial freedom. We just help you get there.
Click here to read more about our mission, browse our educational resources, or chat with one of our team members.