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- Investing Passively through a Real Estate Syndication provides many benefits.
Investing Passively through a Real Estate Syndication provides many benefits.
Investing Passively through a Real Estate Syndication provides many benefits.
A common path for individuals looking to invest in Real Estate is to purchase a single-family home. Investing in residential real estate can be challenging because, as the owner, you are responsible for the entire process – sourcing the property, funding the deal, renovating the property, finding tenants, and maintaining the property. Throughout the life of the investment, you are responsible for the ongoing cycle of maintaining the property and finding quality tenants. This asset class can provide some income. However, the amount of work and expenses involved can make it difficult to scale and generate significant income. Due to the personal attention required, these investments are considered Active Income.
An alternative to single-family investments is to invest in Multifamily through a syndication. This allows you to have the income and benefits from the investment, without having to deal with tenants, improvements, or maintenance. Since you are not having to personally attend to these tasks, this income is considered Passive Income. The benefits from this option can be life-changing.
Stop trading your time for money.
In a syndication deal, your investment provides cash flow during the life of the investment, otherwise called the hold period. You will also receive additional funds when the property is refinanced and when it is eventually sold. REEP Equity is vertically integrated. This integration allows our teams to take care of the entire process for you – executing the business plan and allowing you to enjoy the returns while we focus on the details.
Diversify your portfolio.
By investing with an experienced syndicator, you can easily diversify into various markets and asset classes while being assured that the opportunities have been properly vented. This allows you to quickly scale and diversify your portfolio. OnBridge Capital on acquiring properties in several markets across Texas and multiple property classes. By diversifying your investments across multiple properties, your risk from local economic changes is mitigated.
Decrease your Income Tax obligation.
Similar to personally owned rentals, you get pass-through tax benefits when investing in real estate syndications. However, the tax laws significantly favor multifamily investments. Through these laws, a syndicator is able to capture accelerated depreciation and bonus depreciation benefits and pass those tax benefits through to the investors on their K-1 statements. (For more information, please consult with your CPA. Each personal situation is unique and will require input from your personal tax consultant. REEP is not able to provide tax or accounting advice.)
Hedge against Inflation and Diversify your Portfolio
Investing in real estate is a great way to diversify your portfolio and mitigate risk. The value of a property and the rent income it is able to produce increase along with inflation rates. Unlike the stock market, your investment growth is accelerated by increases in inflation. Due to the ongoing housing shortages and material shortages, we are also seeing increasing demand for multifamily housing. This demand provides a continued increase in value. Therefore, we don’t see the same volatility and downward swings in value that affect the stock market.
The benefits of investing in Multifamily Syndication are numerous. This shortlist highlights some of the most impactful topics. We encourage you to visit our website contact. Here you can find our Why Multifamily? page, which goes into more detail. You can also find extensive resources to help you learn more about the industry, Onbrdige Capital, and our investment strategy.
If you have more questions, please don’t hesitate to ask. Our Investor Relations Manager, Rebecca Treanor, is here to answer all your questions. We invite you to schedule a call or email her at Onbridge Capital. If you would like to receive information about future investment opportunities, please be sure to register for our Investor Network. Opportunities are shared exclusively via email to our Network.
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