Syndications Q & A
What is a Real Estate Syndication?
Real Estate Syndication is the process of gathering investors into a group and channeling their funds into lucrative real estate investments. Funds can be used for Purchasing Residential Homes, Apartment Buildings, Commercial Property, Office Buildings, etc. The “Return on Investment” for our investors is much higher compared to a Bank CD, Bonds, Savings Accounts or Mutual Fund.
How much money do I need to invest in a Syndication?
It depends on the syndication and fund. Normally the Syndicator will look for a minimum of a $100,000.00 investment.
Why should an Investor consider engaging in Syndication?
Real Estate Syndication gives our clients the opportunity to have access to excellent investments with much stronger purchasing power and hassle free ownership. All of the “Day to Day Operations” from due diligence, financing, acquisition, management, repositioning and disposition are taken care of by our seasoned team of experts.
Most clients simply do not have the time to conduct thorough due diligence, analyze, research and underwrite hundreds of properties to find a hidden gem. Not to mention the huge amount of time required for remodeling and property management. However by getting involved in our syndications, our clients have access to solid investments and the opportunity to invest without the hassles of property management or project management. HP Capital Investments offers our accredited and sophisticated investors syndication opportunities in Apartment Buildings and Commercial Properties(e.g. Offices, Motels, Strip Malls, Parking Lots, etc.).
How safe is it?
All investments carry some amount of risk. However HP Capital Investments takes several precautions. The properties are carefully selected, analyzed, due diligence is completed, Title Insurance is obtained, Property Insurance is secured and our acquisitions normally have 10% to 30% of built in equity, which provides an additional safety net.
What is the yield on Syndication?
Historically the yield that our investors have earned has been 7% to 25%. The rate of return varies based on the actual property and is determined on a case by case basis. Every property performs differently.
Why should I work with a Syndicator?
The benefits working with an experienced Syndicator are enormous such as access to industry experts, equity buildup, monthly cash flow, stronger purchasing power, tax benefits, diversification, reduction in debt, and cash reserves. The Syndicator and his team will invests an enormous amount of time locating properties, negotiating purchase agreements, meeting with Brokers and Owners, resolving legal challenges, crafting creative financing, negotiating leases, conducting due diligence, handling Project Management, underwriting loans and handling property management to achieve maximum “Returns on Investment” and “Returns on Equity.”After 42 years of experience we recommend you only work with an expert Syndicator with a proven track record and vetted credentials.