Investing in Real Estate Syndication with Saint Investment

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Everything You Need to Know About Real Estate Syndication

Real estate syndication has recently gained popularity among accredited investors who realize they can often significantly improve cash flows and diversification by investing with a skilled operator on larger projects. Working with best-in-class sponsors, it is now possible for investors to access institutional-quality real estate deals anywhere in the country. Saint Investment Group is your inroads to investment in syndication.

What is Real Estate Syndication?

A real estate syndication is a process by which a group of investors pool their money together to buy a property or properties. The group is typically made up of a syndicator, who is the person responsible for putting the deal together, and a group of limited partners, who invest the money.

Syndication is similar to the difference between stocks and mutual funds. In single property syndication, like stock in a single company, all investor risk hinges on a single investment. On the other hand, like a mutual fund, a real estate syndication fund allows investors to buy a share of multiple properties, which spreads their risk around for better stability, more diversification, and a higher likelihood of quality returns on the property syndication fund.

In this real estate project, multiple individual investors combine their capital to buy, build, and often renovate a commercial property. With a real estate syndication fund, multiple commercial properties are included in a portfolio that syndicate investors buy into.

Funds like those offered by Saint Investment Group provide more robust capital preservation and lower volatility than investing in a single property. More importantly, we’re seasoned experts at managing a collection of properties within real estate funds, freeing your time and energy. Real estate syndication examples include multiple commercial properties, such as offices, retail space, industrial buildings, apartment buildings, and even student housing on college campuses.

The History of Real Estate Syndication

Real estate syndication isn’t a new form of commercial real estate investment — it’s been around for centuries, just not with the use of the internet as a way to learn about them and get involved. Until now, real estate syndication has been mainly operating out of the limelight, especially after the Securities Act of 1933 began regulating them. Before that Act was passed, syndicate organizers, also known as sponsors, could advertise and sell their syndication real estate to anyone.

The regulatory structures set forth by the Securities Act of 1933 allowed for new ways for investors to work together. The Act drove syndication real estate sponsors to build private networks of investor relationships. Often, these networks included successful individuals in their communities, along with successful professionals such as doctors and lawyers. These real estate syndications were built on quality personal relationships.

Perhaps the most famous example of how property Perhaps the most famous example of how property syndication provides more options for purchasing real estate is the syndication investment group that bought the Empire State Building in the early 1960s. Around 3,300 shares of ownership at $10,000 per share gave the syndication the $33 million it needed to purchase all 102 stories of the highly desirable Manhattan property. Each investor had access to significantly larger opportunity zones than they would have had on their own, and the benefits were massive.

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What types of properties are typically syndicated?

There are a few different types of properties that are typically syndicated. The most common type is the multifamily property, which is usually a large apartment complex or group of buildings that contain a number of units. These types of properties are usually syndicated in order to raise the capital necessary to purchase them, as well as to provide a return on investment for the investors. Another type of property that is often syndicated is commercial real estate.

How does real estate syndication work?

Real estate syndication is a process by which a group of investors pool their money to purchase a property or properties. The group is typically managed by a syndicator, who is responsible for finding and vetting investment opportunities, negotiating deals, and managing the property or properties.

The syndicator typically raises money from a number of different investors, each of whom contributes a certain amount of money to the deal. The syndicator then uses that money to purchase the property or properties.

The Transition To Online Real Estate Syndication

A massive opportunity for accredited investors opened up in 2012 when the JOBS Act was passed. Under the Act, the SEC was directed to begin allowing syndications to engage in public solicitation more openly, with the requirement that nonaccredited investors must be accredited first. This rule change is often cited as the true beginning of the real estate crowdfunding industry, making it far easier for passive investors to gain access to real estate investment opportunities they’d otherwise never know about.

By leveraging new technologies online and connecting people better than ever before, investing platforms for real estate crowdfunding have grown, providing investors with excellent access to quality real estate assets. There’s also the ability to build more transparency, with solid reporting and easy-to-access financials. This offers real estate investors a smarter, better informed, and more secure option for real estate investing than in the past.

The true beauty of real estate syndication is the ability to spread risk over a much larger pool of investors while considerably increasing the potential deal size. Real estate crowdfunding platforms for investment are raising the bar for the level of property investors can buy into.

Another benefit of real estate syndication online is the possibility of investing in syndicate deals anywhere across the country, regardless of where the investor lives. This is a major opportunity for those investors who happen to live in more rural areas or areas with little real estate investment options locally. Some areas of the country are experiencing multiple times the growth of other regions, making some markets significantly smarter and more secure investments than others. Investing in quality syndication affords much greater access for investors.

What Difference Does Online Syndication Make For Investors?

Managing syndication real estate online lets operators instantly update reports with key performance metrics that provide deep insight into real estate syndication deals and even key decisions. Transparency and reporting through online platforms are light years beyond previous methods of investment in syndication, enabling greater efficiency and scale. Leading real estate syndication platforms include highly optimized workflows, from property acquisition and advanced reporting to collecting rents more efficiently.

What Difference Does Online Syndication Make For Investors

Stable, Strong Annualized Returns On Commercial Real Estate Syndication

When you’re seeking diversification that offers more stability along with raising money, commercial real estate syndication funds are one of the smartest options available to accredited investors. Saint Investment Group can get you started with a solid foundation of passive real estate investment. Reach out to a member of our team today for a step by step guide to real estate and how you can get involved in the commercial real estate market. Saint Investment Group is here to provide you with portfolio diversification and our track record of success.

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* Information in this message, including information regarding targeted returns and investment performance, is provided by the sponsor of the investment opportunity and is subject to change. Forward-looking statements, hypothetical information or calculations, financial estimates and targeted returns are inherently uncertain. Such information should not be used as a primary basis for an investor’s decision to invest. Investment opportunities on the Saint Platform are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Please see additional disclosures here.
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