What is Syndication?
This is a method where smaller investors join together to purchase multi-million dollar properties. A single purpose entity is created, for example a Limited Liability Company (LLC) that is the owner of the property, and the investors are members of the company. This is similar to owning stocks in a publicly traded company, but the only owners will be the members of the LLC.
Who can invest?
Most of our properties are suitable for Accredited Investors. The Securities and Exchange Commission (SEC) defines Accredited investors as an individual or an entity that meets certain net worth and income requirements. Typically this applies to the wealthy who are allowed to invest in certain high-income investments that are not allowable for non-accredited investors.
What benefits are afforded to Accredited Investors?
By investing as a group, the pooled financial resources are LEVERAGED to purchase large properties. CASH FLOW is created for investors on a monthly or quarterly basis after approximately 6 months after purchase. The properties purchased are often bought at a discount with the potential of adding value through renovations and efficient management, thus adding EQUITY and APPRECIATION. Additionally, BONUS DEPRECIATION is available to the investors and provides a write-off against income taxes.
What is the down side to this type of investment?
As with anything, if there is no risk, there is no reward. This is an illiquid investment. We estimate the hold period for one of our investments to be anywhere between 3 to 6 years. Although you can sell your shares in the Investment LLC to a third party or a fellow members, these shares are illiquid and you would need to find a buyer. Basically, this is a long-term investment with cash flow during the investment and capital gains that will be realized when the property is sold.
Is there a minimum investment?
Yes. Each Offering Memorandum (information about the investment) will have that information. Typically these minimums range from $35,000 to $100,000.
May I use funds from a 1031 exchange, or an IRA, or a 401(k) to invest?
Yes! However you will need to contact us for information to set this up. There must be enough time prior to the closing date to have these properly set up to avoid triggering income tax.
Do the General Partners invest in the properties along with the Limited Partners?
Yes. The lenders always require that the General Partners have what they call "skin in the game" meaning that their personal funds must be invested along with the funds of the Limited Partners.
Why should I invest with IntegraTrust Capital?
Our team offers the benefit of a wide array of real estate and investment experience. We are available to address any questions you may have and consider ALL partners a member of our team. Even though the General Partners do all of the heavy lifting of direct management, the Limited Partners are able to monitor progress, payments, and news regarding the property through a direct Investor Portal. We striveĀ to make this investment as seamless as possible so that the Limited Partners enjoy the peace of mind that their investment is well managed to its maximum potential.