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It's Essential To Expect The Unexpected With Your Real Estate Portfolio
Were you ever a Girl Scout? Do you remember the motto? "Be prepared ." What does that mean? It signifies that you are always ready to serve and do your duty no matter the circumstance. Today it means extra masks in your purse and the glove box of your car, and hand sanitizer tucked everywhere. 😷 Similarly, it's essential to expect the unexpected with your real estate portfolio. We can't predict the future market, but, based on historical data, we know to expect cycles. Market corrections and recessions occur every so often, so it's important to prepare your portfolio to withstand those fluctuations. One of the most powerful strategies used to weather economic cycles successfully is diversification. Even within real estate, you can diversify and maximize the long-term growth of your investments. By investing in a variety of different real estate assets, you can lower the risk overall. Diversifying Your Real Estate Portfolio Here are 5 ways to do this: #1 - Asset Type Within the real estate world, there are a variety of asset types. You can invest in retail, industrial, multifamily, office space, self-storage, and more. By varying the types of properties you invest in, you're hedging against broader changes to the economy. #2 - Location One city might be booming at any given time, while a neighboring area may be experiencing a lull. Smart real estate investors desire properties in the growing regions or those expecting growth. By diversifying across multiple cities, counties, or states, you can take advantage of the potential across several markets and hedge your bets against a correction in any one area. The challenge in diversifying across geographical locations is obtaining the research, connections, and more you'd need to feel comfortable investing in them. Faced with the challenge, you can leverage the sponsor team's expertise in each market, which is what makes passive investing so attractive. #3 - Asset Class Aside from asset type, there is also asset class, which is a range of moderate-to-luxury unit prices within each asset type. Take an apartment complex, for example. Consider the range between moderately priced units, nicely developed units for the upper-middle class, and finally, the ultimate luxury apartments available in some areas. Certain asset classes, like the more conservatively priced units, do well during rough-patches in the economy. Luxury properties do best during the so-called booming economic years. It's prudent to have both in your portfolio so that your portfolio is profitable at any given point in the economic cycle. #4 - Hold Length Real estate syndication investments have an associated hold time, ranging between 3 -10 years (or more). Consider varying the hold time of your assets so you're not entering and exiting more than one deal at a time. #5 - Funds One of the easiest ways to diversify quickly is to invest in a real estate syndication fund. A fund pools together investors' money to buy various assets within a specified period. Funds can be defined by geography, asset type, or asset class. Conclusion At certain points in the market cycle, it will feel like the market will go up forever. Conversely, it may feel like the market will continue a downward spiral forever. We know that neither of these is true and that during one phase of the cycle, investors should diversify portfolios in preparation for the next stage. Keep these 5 ways to diversify in the back of your mind as you explore potential deals. Doing so will help you find various opportunities to diversify your portfolio, no matter the current market cycle.
You're No Dummy! Real Estate Is A Big Big Deal Unlock The Magic of Multifamily Real Estate Investing
Once you get wind of real estate syndications and you begin thinking about the possibility of investing passively in them, it's natural to have questions lots of questions simultaneously. Investing in real estate is a big big deal, and you SHOULD have and ask ALL the questions. Furthermore, real estate syndications aren't broadly publicized, so not only will your friends probably not have any answers to your questions, but they likely will have no idea what you're even trying to convey. For this exact reason, you must find a trusted, knowledgeable resource to get your questions answered and do plenty of research. In an attempt to make this easier on you, we've addressed four big questions today: 1) What types of properties can I invest in using syndications? 2) What risky downsides are there to syndications? 3) Where and how do I find syndication deals? 4) Can I invest in syndications online? The answers to these 4 simple questions will clarify so much for you. We can feel it! Ready? Let's dive in! What are the different types of real estate syndications? Real estate syndication deals are available on multifamily properties, self-storage, manufactured home parks, land development, hotels, student housing, warehouses, and more. Some real estate syndications are for ground-up construction, and others are for buy-and-hold (i.e., buy an asset that's already stabilized, and hold it for a number of years). A great example of a value-add multifamily deal is an apartment community whose units haven't been updated in ten years. The kitchens are all dated, the carpets worn, and the landscaping needs some work. By making those improvements, we can increase the rents, which increases the income from the property. Thus, increasing the overall value. What are the risks of investing in real estate syndications? You're no dummy!!! You already know any investment is a risk. Syndications aren't immune to risk either. One of the most significant risks lies in the execution of the business plan. Before the deal, you're wooed with glossy marketing packages, and the sponsors will answer your questions with lofty ideals. However, when the rubber meets the road, the sponsor team needs to execute the business plan in the face of unforeseen circumstances. Investing with sponsors who have a proven track record and who prioritize capital preservation helps ensure that they will protect your investments and do what they say they're going to do. Changing market and economic conditions are always a risk. No one can predict what market conditions will be like at the end of a project's hold time. This means, if the projected hold time is 5 years, check to make sure that the loan term is for at least that long, and ideally longer than 5 years, so there's a buffer in case sponsors need to hold the property longer than intended. At the end of the day, as a limited partner passive investor, you're concerned with your personal liability. The good news is your liability in real estate syndication is limited. At worst, you could lose your original investment capital, but you could not lose more than that (e.g., you can't lose your house). Where can I find real estate syndication opportunities? The only publicly advertised real estate syndication deals are for accredited investors only. So, how does a "normal person" find real estate syndication deals? You can do a Google search, but how do you know that the opportunities that pop up are legitimate ones, put together by experienced teams with strong track records, who will safeguard your money over several years? You don't. The best way to find real estate syndication opportunities is to get out there and talk to people in the real estate syndication space. This community is relatively small, and once you get connected, you'll effortlessly find sponsors and real estate syndication opportunities that fit with your investing goals. How do private real estate syndications compare to real estate crowdfunding sites? Maybe one of your friends claims they invested in a syndication deal for just a few thousand bucks. This is because recently, real estate crowdfunding sites like RealtyMogul, RealtyShares, and Fundrise have helped make it possible for millions of people to invest passively in real estate. Real estate crowdfunding sites can be an excellent place to find real estate syndication offerings. However, there are a few things you should keep in mind. First, most of these platforms require you to be an accredited investor to invest in their real estate syndication offerings. Some of these platforms offer REITs (real estate investment trusts) as an alternative for non-accredited investors. Typically, you can invest in these REITs with a low minimum investment (you can invest in Fundrise's eREIT for just $500). Just be aware that REITS are not real estate syndications. Instead, it's a fund, which is likely what your friend invested in actually. When you invest in a REIT, you're investing in a company that buys real estate; you don't have direct ownership of the underlying asset yourself, like in a real estate syndication. You would likely still get good returns, you would be investing in a bunch of assets rather than a single one, and you wouldn't get the same tax benefits as with a real estate syndication. Regardless, if you're new to real estate investing, you should check out some real estate crowdfunding sites to see what they bring to a portfolio. In Conclusion All in all, it's essential to understand the risks, the terminology, the options available, and how to find the deal that fits your goals and investing style best. Real estate syndications aren't for everyone, but they can be a fabulous addition to anyone's portfolio. Now that you know more about finding and passively investing in real estate deals, that's one more checkbox checked and one less barrier to entry. Ready, set, go!
Let Us Take You Behind The Scenes And Introduce You To Our Key Roles In Real Estate Syndications
As a kid I just loved Mickey Mouse cartons and if I’m honest I still do. 💖 Mickey always had a problem to solve and each character had their role. Mickey, the lead and Minnie there always pointing him in the right direction. Then there was Donald the trusty sidekick and don’t forget Pluto. Whatever we do there is usually a whole cast of characters behind the scenes and on the frontline propping us up. One of the best analogies for a real estate syndication is to think of it as an airplane ride. 🛫 There are pilots, passengers, flight attendants, mechanics, and more, who all work together to get the plane safely to its destination. In this analogy, the pilots are the sponsors of the syndication, and the passengers are the passive investors. They’re all going to the same place, but they have very different roles in the process. If unexpected weather patterns emerge, if an engine has issues, or any other number of surprises, the pilots are the ones who are responsible for the flight. The pilots will likely update the passengers (“Just to let you know, folks, we’re experiencing some turbulence at the moment…”), but the passengers don’t have any active responsibilities in making the decisions or flying the plane. A real estate syndication is much like this. The passive investors, sponsors, brokers, property managers, and more, all share a vision to invest in and improve a particular asset. However, each person’s role in the project is different. In this article, we’ll talk about exactly who those players are, as well as their respective roles in a given real estate syndication. People in a Real Estate Syndication Here are the key roles that come together to make a real estate syndication happen: ● Real estate broker ● Lender ● General partners ● Key principals ● Passive investors ● Property manager ● Ellis Chris Properties Real Estate Broker The real estate broker is the person or team who surfaces the property for sale, either as a listing or as an off-market opportunity (i.e., not publicly listed). Having a strong real estate broker is crucial, as they are the main liaison between the buyer and the seller throughout the acquisition process. Lender The lender is the biggest money partner in a real estate syndication because they provide the loan for the property. The lender performs their own due diligence, underwriting, and separate appraisal to make sure the property is worth the value of the loan requested. In the airplane analogy, neither the real estate broker nor the lender are aboard the plane. They have important roles in bringing the project to fruition, but they are not part of the purchasing entity, nor do they share in any of the returns. General Partners The general partners synchronize with the real estate broker and lender to secure the loan and acquire the property in addition to managing the asset throughout the life of the project, which is why they are often also called the lead syndicators. The general partnership team includes both the sponsors and the operators (sometimes these are the same people). The sponsors are the ones signing on the dotted line for the loan and are often involved in the acquisition and underwriting processes. The operators are generally responsible for managing the acquisition and for executing the business plan by overseeing the day-to-day operations. Operators guide the property manager and ensure that renovations are on schedule and within budget. Key Principals For a commercial loan, the sponsor is required to show a certain amount of personal liquidity. This reassures the lender that the sponsor can contribute additional personal capital to keep the property afloat if things were to ever go wrong. One or more key principals may be brought into the deal to help guarantee the loan if the sponsor’s personal balance sheet is insufficient. Passive Investors A real estate syndication’s passive investors have no active role in the project. They simply invest their money in exchange for a share of the returns. Like the passengers on an airplane, they get to put their money in, sit back, and enjoy the ride. What a great position! 💥💥💥 Property Manager Once the property has been acquired, the property manager becomes arguably the most important partner in the project because they are the “boots on the ground” who execute renovation projects according to the business plan. The property manager works closely with the operator (i.e. the asset manager) to ensure the business plan is being followed and that any unexpected surprises are addressed properly. Ellis Chris Properties In a real estate syndication, Ellis Chris Properties is part of the general partnership. Our main role is to lead investor relations and help raise the equity needed. We serve as an advocate for investors by ensuring that the sponsors’ projections are conservative, deals are structured favorably toward investors, that multiple exit strategies exist, and that capital will be preserved and grow. After the property is acquired, we act as the liaison between the sponsor/operator team and the investors by providing updates, financial reports, and other important information between parties. Essentially, we are like the flight attendants, who prep the passengers for the journey and help ensure they are well-informed and comfortable throughout the flight. 🛬 Conclusion A real estate syndication, by definition, is a group investment. And it’s only through pooling resources and coordinating that the syndication can be successful. In addition to the key roles discussed here, there are inspectors, appraisers, cost segregation specialists, CPA, legal team, insurance agents, and more, who work in the background to make sure that the syndication gets off the ground. While all their respective roles are different, they are all needed to ensure the success of the syndication.
Did You Know That You Can Invest In Real Estate Without The Headaches Of Tenants, Toilets, and Trash
Did you know that you can invest in real estate without risking the headaches of tenants, toilets, and trash? It's true – you can get all the benefits of investing in real estate without any of the hassles of being a landlord. In this article, you'll see what passive real estate investing means and find out if you should be an active or passive investor. What It Means To Be An Active Investor When most people think of real estate investing, they think of rental property investing – buy a single-family home, find a renter, and collect monthly rental income. Sounds easy enough, but the reality can be quite different. Even with a professional property management team on board, you as the landlord still have an active investment role. The property managers may take care of the day-to-day issues. However, you will still need to be involved in strategic decisions, including whether to evict tenants who aren't paying, filing insurance claims when unexpected events happen, and sometimes having to put in additional funds to cover maintenance and repair costs. What It Means To Be A Passive Investor On the flip side, you have passive investing, which is the "set it and forget it" type of real estate investment. You invest your money, and someone else does all the heavy lifting. The terrific part about passive investing is that it's passive – you don't get any calls from the property manager, you don't have to screen any tenants, and you don't have to file any insurance paperwork. However, being a passive investor also means that you relinquish some of your control in the investment and trust someone else (i.e., the sponsor team) to manage the property and execute the business plan on your behalf. Should You Be an Active or Passive Real Estate Investor? Here are 10 factors to help you decide which path is right for you. #1 – Tenants, Termites, and Toilets If you've dreamt of becoming a landlord, having tenants, and making improvements, then consider an active investor role. Otherwise, if the title to this bullet point makes you nauseous, you should go the passive route. #2 – Time Active real estate investments require more time during the initial acquisition and throughout the project lifecycle, while passive investments only require your time upfront, during the research phase. #3 – Involvement How hands-on do you want to be? Do you want to manage the property yourself, field tenant requests, and schedule maintenance and repair appointments? Or do you want to sit back while someone else does all of that? #4 – Profits With active investing, you would likely be the only property owner, so you would get to keep any net profits. With passive investing, the profits are distributed among many investors. One type of investment doesn't necessarily net you higher returns than the other; you'll need to compare one deal to another. #5 – Expenses Active real estate investors should plan to handle insurance claims, emergencies, and repairs, which may require additional money at times, whereas passive investors only make an initial capital investment. #6 – Risk and Liability If things go south with active investing, you are personally held liable, which means you may lose the property and your other assets. With passive investing, your liability is limited to the capital you invest. Typically, the asset is held in an LLC or LP. If anything goes wrong, the sponsors are held liable, not the passive investors. #7 – Paperwork Active investments are paperwork-heavy, from the property's initial purchase to tracking purchase and rental agreements, bookkeeping, and legal documents throughout the project. On the other hand, with passive real estate investments, you typically sign a single PPM (private placement memorandum) to invest in the property. No need to fill out lender paperwork, file for insurance, or do any bookkeeping. #8 – Team As an active real estate investor, you will need to build your team, including brokers, property managers, and contractors. As a passive investor, you rely on the shared expertise of the existing deal sponsor team. The sponsors are experts in the market and typically already have a team set up to manage the property. #9 – Diversification With active investing, you would need to be an expert in investing in the market and the asset class. If you're investing outside your local area, you would need to research the market, find a "boots on the ground" team, and possibly visit the place. It's easy to diversify across different markets with passive investing since you don't have to start from scratch with each market. You are investing with teams that have already taken the time to research those markets and build strong local teams. #10 – Taxes As an active investor, you'll be responsible for the bookkeeping, meaning you will need to keep track of the income and expenses. You'll also need to work with your CPA to make sure that you are correctly depreciating the asset's value each year. As a passive real estate investor, you don't need to do any bookkeeping. You receive a Schedule K-1 every spring for your taxes, which shows the property's income and losses—no need to track income and expenses throughout the year. Conclusion If you're ready to roll up your sleeves and get involved in the various aspects of being a landlord, active investing might be the perfect adventure for you. However, if your time is limited, but you have the capital to invest, you might want to consider being a passive investor. If you're hoping for a middle ground option, turnkey rentals and buy-and-holds may provide some control without the considerable time investment. When determining which is the right path for you, be sure to factor in your unique situation, goals, and interests.
How To Recognize The 5 Basic Phases Relating To A Well Thought Out Value-Add Multifamily Real Estate
Life, love, the moon, notetaking? What do all of these things have in common with value-add multifamily syndications? They are all moving through phases, a series of steps that go from start to finish. Yes, even notetaking! 😮 Depending on whom you are listening to or even your culture, the number of phases for each will vary. For instance, most of us have heard of a new moon, a crescent moon, or a full moon. Did you know that the Hawaiian culture has 30 phases of the moon, one for each day? The Five Phases of a Value-Add Multifamily Syndication Similarly, each real estate syndication goes through a progression of stages with a clear beginning, middle, and end, ensuring individual investors operate as one, according to a clear business plan. Phase #1 – Acquire The first stage begins with sponsors getting a property under contract. Not only can finding a great property be difficult, but this phase also requires impeccable underwriting skills and reliable projection calculations. Once under contract, sponsors work diligently to discover the property's needs, record estimated expenses, and update the business plan accordingly. After the sponsors and we are confident with the research, the deal, and the projections, we share the opportunity with investors like you to gauge interest. Once all investors send in their funds, we then close on the property. Phase #2 – Add Value The term "value-add" means precisely what it sounds like; we're adding value to the property, which is why renovations typically kick off upon closing. All per the business plan, transitions begin with the property management team and renovations on vacant units. This phase can last 12 to 18 months or longer, depending on the time it takes for all tenants' leases to expire and for all old units to be renovated. Exterior and common area renovations may also be made, such as updating or adding light fixtures, a dog park, covered parking, or landscaping. Phase #3 – Refinance Since commercial properties are valued according to the income they generate, the renovation phase's whole point is to fetch rent premiums to increase revenue. Most tenants will happily pay an additional $100 per month for the opportunity to move into an updated unit. If the apartment complex has 100 units, that's an additional $120,000 per year in rental income, which, at a conservative 10% cap rate, equates to $1,200,000 in additional equity. With that additional equity, a sponsor may attempt to refinance or sell the property early if the market is right. Although thrilling, neither of these is guaranteed. You would receive a portion of your initial investment back through a refinance or supplemental loan while still cash flowing as if you continued to invest the entire amount. Let's pretend you invested $100,000 into a value-add multifamily syndication, and after 18 months, the sponsors refinanced the property and returned 40 percent of your original capital. Here's where you celebrate because this means you got back $40,000, plus continuous cash flow distributions of 8-10% off your total $100,000 original investment. Phase #4 – Hold The next phase constitutes holding the asset while collecting cash-on-cash returns (aka, cash flow). Since the value-add phases are complete and the riskiest phases have passed, the focus shifts toward attracting great tenants and generating healthy revenue. Throughout the hold period, rent increases at a nominally low percentage each year, increasing revenue and contributing toward a steady appreciation of the property. This phase's length, preferably 5 years or less, is based on the individual property, sponsor, and business plan. Phase #5 – Sell At this point, the property exhibits completed updates, increased revenues, and appreciation. So, the best use of investor capital is to sell the property so that they can seek their next investment project. During the disposition phase, sponsors prepare the asset for sale. Sometimes the asset can be sold off-market, creating minimal disruption for tenants. Otherwise, sponsors muster through the whole listing and sale process. Occasionally, if investors agree, the sponsor may initiate a 1031 exchange. This allows investors to roll their capital and proceeds into another deal with the same sponsor. Either way, once the sale is complete, you get your original capital back, plus a percentage of the profits. Time to pop those corks! 💥 There you have it! Like other things, including life itself, you have structure and focus within each step. Remember, every deal is different, and not all syndications go through all five phases. As a passive investor, you get to avoid the legwork. However, you still want to thoroughly understand the typical phases of the value-add multifamily syndication process, so you're informed every step of the way.
The Top 4 Unexpected Reasons Real Estate Syndications Are NOT For Everyone
If you've spent any time on our site at all, you know I love 💖 real estate syndications. If you are new to real estate syndications, you may want to read this popular post first. We think they're fantastic and that people should be interested and trying to invest in them. We can't wait to continue to share about them so that more people have the opportunity to learn about these types of passive investments. Syndications give everyday people like you and me the chance to grow their wealth in a way that was once only available to the wealthy. However, we also know that real estate investments are a significant investment and are not the perfect choice for everyone. So, here are the top four reasons why someone should NOT invest in real estate syndications. 1. You Can't Take Your Money Out At Will Entering into a real estate syndication deal means you agree to the terms and projected hold time. Your investment capital (cash invested) is illiquid for the deal's duration until the asset is sold. If you're passively investing in a real estate syndication deal and the hold time is 5 years, then you should plan to leave your money invested for the full 5 years, if not longer. Other investments like stocks and mutual funds are much more flexible, and often you can decide to sell and have your money back within minutes. In contrast, real estate syndications do not allow you to make withdraws at will. Read about stocks versus real estate here. Upon initiating or entering a real estate syndication deal, you must sign the Private Placement Memorandum (PPM). This document spells out the hold time, liquidity, and other details of the investment. If there's anything about the idea of investing at least $25,000 and not having access to it for 5 years that makes you uneasy, turn around now. 🏃🏽♀️ 2. You Have To Invest A LOT of Money The minimum investment on our real estate syndication deals is $25,000, which is a LOT of money for anyone. 🤑 You could buy a car, pay for a private school, or make major headway on a mortgage. There are many options on how such a considerable value of cash could be used. Our advice? Don't put $25,000 into a real estate syndication until you're absolutely sure that THIS is how you want to use this cash. Want more of our advice? If you have $26,000 in your savings account, don't you dare invest $25,000 of it into a real estate syndication. Your cash investment won't be available for several years. You'll need to ensure you have enough saved in a separate emergency fund, created other accessible savings for other short-term goals, and have yet more cash to, well, cover life in general. Go with your gut on this one. 3. You Have to Learn A New Process Standard rental properties work much the same way as they do in the game of Monopoly. You check out a property, buy it, rent it out, and collect rent each month. Investing passively in real estate syndications requires you to throw all of that out the window. Passive investors seldom set foot on the property, they don't have a relationship with the lender or the management team, and they'll never come into contact with tenants, toilets or trash. You will enter into the investment when the asset is already on its way to closing. Passive investing is called such for a reason - because you're not involved day-to-day and because you retain time freedom throughout the process. 4. You Have to Give Up Control One more major fundamental difference between passive investing and everything else is the level of control you have over the daily decisions made regarding the property, renovations, and tenants. In regular real estate investments, you retain creative control over improvements, screening tenants, and whether you're planning to sell within a certain period. Passively investing in real estate syndications removes all of these daily hassles and puts you in the passenger seat. It's like riding the express train. 🚄 You get on board, sit back, and enjoy the ride. Sitting back can be frustrating if you've previously enjoyed controlling aspects of the property. However, developing a level of trust in the sponsor team, in this case, is imperative. If you don't think you can handle allowing a team of professionals to make decisions for you, you might as well cross real estate syndications off your list now. Conclusion Every syndicator and sponsorship team will shout from the rooftops about how great syndications are, and sure, they can be fabulous tools to grow wealth. But no investment vehicle is perfect, and, indeed, no single investment style is ideal for everyone. If any of the above top four reasons not to invest in a real estate syndication triggered you, maybe investing passively in real estate syndications isn't your cup of tea. And that's okay. You have the power to choose what's right for your situation, your family, and your financial goals, and you should exert that power to its fullest. Be honest with yourself and listen to your gut.
It's Easier Than Apple Pie, Take The First Step To A Worry Free Retirement
What does financial independence really mean, and how's it different from financial freedom? Consider a toddler learning to walk. Once they figure out how to pull up and take a few steps independently, they have achieved a new mobility level. They may not need their parents to carry them from room to room as often. However, you wouldn't expect that same toddler to walk the entire Zoo visit or walk all the way to the park the following day. They haven't achieved full FREEDOM yet, although they will revisit that subject around age 18. Money works the same way. Let's dissect what it means to be financially independent vs. financially free and how investing in real estate can help get you there. Financial Freedom vs. Financial Independence Think about that same toddler who just learned to walk. Maybe your finances have reached "mobility," and you have enough passive income (outside your salaried job) to cover your necessary expenses. Can you lose your job and not sweat it? Do you have a fully-funded emergency fund? Will your passive income fund your current lifestyle indefinitely? Savings is highly recommended and all, but it will eventually run out if it's funding your lifestyle for an extended period. However, an ongoing passive income is created while you sleep. To achieve financial independence or financial freedom, you'll need to build multiple streams of passive income over time. Thus it's called a financial journey. Step #1 - Financial Security If your salary disappeared for some reason right now and you still had enough money coming in from other sources to cover your necessary living expenses, that would be financial security. Sure, you might have an emergency fund, but what if finding new employment takes longer than expected, and that stash of cash runs dry? Unexpected events are precisely why external sources of income are critical. Becoming financially secure is the first step toward financial freedom and worry-free retirement. Step #2 - Financial Independence Being financially secure means you can cover all the bare-bones basics to survive. Still, being financially independent means you can cover those basics plus a few conveniences or luxuries like dining out, family vacations, and some Amazon Prime. Financial independence allows you to retire early and maintain your current lifestyle without working ever again. Multiple streams of passive income can fund your lifestyle while you choose what you want to do day-to-day. Step #3 - Financial Freedom True financial freedom is one step beyond financial independence. Financially free individuals' passive income can fund the luxurious, travel-inspired, do-what-I-want lifestyle. Financial freedom means you can make choices like flying first class, upgrading to the ocean-view suite, and bringing a friend pro-bono without worrying about the money. Your Path to Being Financially Free Everyone's financial journey begins from a different place, with their numbers and circumstances. However, the ultimate goal and the milestones along the journey are the same. You know that living paycheck-to-paycheck is not for you. You're aware of your future possibilities and your financial situation with carefully planned budgeting and investing. Obtaining this milestone means you're going to need some passive income goals against which to measure and gauge your progress down the path. Financial Security Number Take a look at your current expenses (bills + anything you pay for), and extract the basic costs. How much on average do you spend on food, shelter, clothing, and other basics? That's your financial security number - the amount you need in passive income to become financially secure. Financial Independence Number Next, take a look at your current finances and lifestyle in totality. What's it take to fund the whole shebang? The basics (those covered by the financial security number) plus all the enjoyable conveniences and comforts you spend money on in total equals the monthly amount you need in passive income to achieve financial independence. When you build enough passive income streams to cover your current lifestyle completely, that's financial independence. You're financially independent of needing to work. Financial Freedom Number Once you have calculated your financial independence number, take a step back, and consider the things you WANT to afford. Find out how much money the lifestyle you dream of will cost. This dream lifestyle number is your financial freedom number. Your final steps along the financial journey path include building multiple income streams so that the passive income you earn is enough to fully fund this dream lifestyle and help you achieve true financial freedom. How to Achieve Financial Freedom Through Investing in Real Estate There are a million ways to generate passive income streams. You might become an author, design an app, or start a business, but all of those require significant skills and knowledge the average Jo doesn't have. However, more people have become millionaires through investing in real estate. Why? Because it's so simple! You buy a property and rent it out. Sounds like the game of Monopoly - pretty simple, right? Investing in Rental Properties Let's pretend you've saved up $20,000 for investment. You put $15,000 down on a rental home and use $5,000 to boost curb appeal and refresh the paint. A lovely couple rents the place, and their consistent rent payment more than covers the mortgage payments, so you're earning cash flow each month. $250 per month in excess cash flow after expenses isn't much and won't create financial freedom on its own, but it's a step in the right direction! Add a rental home like this to your portfolio every year, and within 5 years, you'll be up to $1,250 per month in rental income. It's not fast, and there's no magic pill, but if you take the time to build slowly, you'll get there. Investing in Real Estate Syndications An alternate way to invest in real estate and avoid the messiness of remodels and tenant woes is to invest in real estate syndications. In these types of group investments, several investors pool money - $50,000 - $200,000 each - and the money is pieced together to cover the down payment and the cost of renovations on a much larger-scale property. You'd be a passive investor, while the general partners (also called sponsors) are responsible for property management, renovation coordination, and occupancy rates. Sponsors do receive a cut of the returns for their work, but most profits go to investors. For example, a $50,000 investment into a real estate syndication with a 10% return will produce about $400 per month in cash flow. Syndications are inherently passive because your money makes money, and you have no active responsibilities. Real estate syndications are available in different markets and asset classes, which allow you to diversify and build multiple streams of income quickly. Enjoy Your Journey to Financial Freedom There's no one right or wrong path to financial freedom, just as there's no single type of real estate investment that will accelerate your journey the fastest. Real estate can be the easy, slow, and steady approach to financial freedom no matter which stage of financial security you're at now. You'll enjoy the journey most if you focus on the lessons, relationships, and surprises you'll experience along the way. To learn more about real estate investing and syndications, join the Ellis Chris Properties community, where you can meet other like-minded investors on their way to financial freedom too!
7 Huge Easy To Understand Differences You Need To Know - REITs & Syndications
If real estate investing seems interesting to you, but you'd rather avoid becoming a landlord, you're not alone. Fixing toilet emergencies at 4 am isn't appealing to most people. Shocker. The next logical step that many investors take is toward a real estate investment trust (REIT), which is easy to access, just like stocks. What is a REIT, anyway? When investing in a REIT, you're buying stock in a company that invests in commercial real estate. So, if you invest in an apartment REIT, it's like you're investing directly in an apartment building, right? Not really. Let's explore the 7 Huge, Easy to Understand, Differences Between REITs and Real Estate Syndications: Difference #1: Number of Assets A REIT is a company that holds a portfolio of properties across multiple markets in an asset class, which could mean excellent diversification for investors. Individual REITs are available for apartment buildings, shopping malls, office buildings, elderly care, etc. On the flip side, with real estate syndications, you invest in a single property in a single market. You know the exact location, the number of units, the financials specific to that property, and the business plan for your investment. Difference #2: Ownership When investing in a REIT, you purchase shares in the company that owns the real estate assets. When you invest in a real estate syndication, you and others contribute directly to purchasing a specific property through the entity (usually an LLC) that holds the asset. Difference #3: Access to Invest Most REITs are listed on major stock exchanges. You may invest in them directly, through mutual funds or exchange-traded funds, quickly and easily online. On the other hand, real estate syndications are often under an SEC regulation that disallows public advertising, making them difficult to find without knowing the sponsor or other passive investors. An additional existing hurdle is that many syndications are only open to accredited investors. Even once you have obtained a connection, become accredited, and found a deal, you should allow several weeks to review the investment opportunity, sign the legal documents, and send in your funds. Difference #4: Investment Minimums When you invest in a REIT, you are purchasing shares on the public exchange, some of which can be just a few bucks. Thus, the monetary barrier to entry is low. Alternatively, syndications have higher minimum investments, often $50,000 or more. Though they can range from $10,000 up to $100,000 or more, real estate syndication investments require significantly higher capital than REITs. Difference #5: Liquidity At any time, you can buy or sell shares of your REIT, and your money is liquid. However, real estate syndications are accompanied by a business plan. The plan often defines holding the asset for a certain amount of time (usually 5 years or more), during which your money is locked in. Difference #6: Tax Benefits One of the most significant benefits of investing in REITs versus real estate syndications is tax savings. When you invest directly in a property (real estate syndications included), you receive various tax deductions. The main benefit is depreciation (i.e., writing off the value of an asset over time). Often, the depreciation benefits surpass the cash flow. So, you may show a loss on paper but have positive cash flow. Those paper losses can offset your other income, like that from an employer. When you invest in a REIT, because you're investing in the company and not directly in the real estate, you get depreciation benefits. Still, those are factored in before dividend payouts. There are no tax breaks on top of that, and you can't use that depreciation to offset any of your other income. Unfortunately, dividends are taxed as ordinary income, contributing to a bigger, rather than smaller, tax bill. Difference #7: Returns Returns for any real estate investment can vary wildly. Yet, the historical data over the last forty years reflects an average of 12.87 percent per year total returns for exchange-traded U.S. equity REITs. By comparison, stocks averaged 11.64 percent per year over that same period. In other words, on average, if you invested $100,000 in a REIT, you could expect somewhere around $12,870 per year in dividends, which is an excellent ROI. However, real estate syndications between cash flow and profits from the asset's sale can offer around 20 percent average annual returns. For example, a $100,000 syndication deal with a 5-year hold period and a 20 percent average annual return may make $20,000 per year for 5 years, or $100,000. This means, taking into account both cash flow and profits from the sale, your money doubles over those five years. Conclusion So, in which one should you invest? All in all, there's no one best investment for everyone (but you knew that, right?). If you have $1,000 to invest and want to freely access that money, you may look into REITs. If you have a bit more available and want direct ownership and more tax benefits, a real estate syndication may be a better fit. And remember, it doesn't have to be one or the other. You might begin with REITs and then migrate toward real estate syndications later. Or you might dabble in both to diversify—either way, investing in real estate, whether directly or indirectly, is forward progress.
How to Leverage Your Time & Money, Start Creating Passive Income
Imagine with me that your workday began with the usual routine, but halfway through your morning, you received the news you'd been laid off. For most Americans, that means zero income starting tomorrow morning. Now, let's pretend that during your employment, you leveraged your money. The rich don't work for money. They make their money work for them. – Robert Kiyosaki Three Types of Income Most people's income is active, which means it's from a consistent paycheck. But wealthy people typically earn Residual or Passive income (or both!). Active Income Active income is from your employer and requires activity in exchange for money. When you stop, the income stops. Residual Income Residual income means you receive money after the work is done. For example, every book an author sells provides residual income. Passive Income Passive income is earned with minimal effort and continues flowing even when you aren't working. Real estate investments are one of the most stable sources of passive income. Remember the job loss scenario? Let's pretend you'd built passive income, on the side, during employment. Since being laid off, your earnings decreased by your monthly salary amount, but you still have income. Financial freedom is achieved when your earned passive income supersedes your active income. Investing in Stocks vs. Real Estate Historically, the stock market returns about 8% annually, which means $100,000 would produce roughly $8,000 per year. That's only $667 per month. To replace an income of $3,000 per month, you'd need $36,000 per year, which would be 8% of $450,000. However, with real estate, $100,000 could buy a $400,000 rental home. How? The bank brings $300,000 to the table. You put in 25%, the bank puts in 75%, and you earn 100% of the profits. A $400,000 home renting for $3,600 with a mortgage of $2,100 would net you $1,500 per month. Theoretically, 2 investments of this size could replace a $3,000 monthly income. The total rental income plus $25,000 in additional equity (based on 5% annual appreciation) equals $43,000, or 43% return in just one year. But I Don't Want to Be a Landlord The numbers look enticing, but being a landlord does not. This is where, instead, you join a small team to acquire real estate. When investing $100,000 in real estate syndication, it's feasible to earn $8,000 per year (8%), similar to the stock market. However, the real opportunity lies in the sale of the asset. Syndications hold the property for about 5 years. During this time, building improvements are made, and the land market value typically rises. Upon the sale, you receive $160,000 ($60,000 in profit). This, plus the passive income of $8,000 per year (totaling $40,000), equals $200,000, a 20% average annual return. If, while employed, you're able to create passive income, you'll be less stressed when facing a layoff. You may even find yourself celebrating unemployment. Find out your real estate investing Superpower…single-family, apartment buildings, crowdfunding, REIT’s. Take the quiz here! Real estate investing quiz Invest with us. Join the Ellis Chris Investor Club To book a FREE 30-minute RE Investing Strategy Call, go to
How To Retire By Investing In Real Estate
No matter how many jobs you've had or how far down the career path you are, facing any workplace transition brings up emotions, fears, and possibly, some sleepless nights. The bittersweet feelings of quitting a job even for retirement include guilt, worry, anxiety, excitement, adrenaline, and gratefulness. It only seems sensible that a cushion of cash in the bank might make any transition less worrisome. In this article, we'll share 3 steps toward leaping from the 9-5 through real estate investing so you can spend less time worrying and more time doing things you love. Want to Retire But Feeling Stuck Unlike generations prior, it's rare for anyone these days to remain with a single company or industry throughout their career. Furthermore, few companies still have pension plans. We are each individually responsible for our retirement. Many professionals (you included) want to take the leap. They are afraid of reducing their income and still being able to afford a life they love. Some of these fears can be because they have not been able to save enough and think they may run out of money. The simple solution to all of the above is passive income. The income you earn without actually having to step foot in an office or head to work even a few hours a day seems like a dream, but we're here to share with you how you can make this your reality. Step 1 – Find Your Freedom Number The first step toward building a robust financial plan and quitting your full-time job with confidence is finding your freedom number. This number is the amount of money that would more-than-cover your regular monthly expenses based on your current lifestyle. Your freedom number is the amount of income you need to earn passively to quit working and still cover all your bills worry-free. You can easily find this value by looking at your expenses from the past six months. Let's pretend your expenses for the last six months look like this: Month 1 - $ 9,500 Month 2 - $ 12,300 Month 3 - $ 8,700 Month 4 - $ 10,800 Month 5 - $ 9,100 Month 6 - $ 9,600 The average of these expenses is $10,000. Now, add a 10% buffer. Your freedom number, in this case, is $11,000. This amount is how much you need to establish consistent, passive income so you can leave your nine-to-five with confidence. Step 2 – Build Passive Income Now that you have your target freedom number calculated, you can get to work building multiple income streams that will equal that total. Some ways to generate passive income include writing a book, creating online courses, or designing products to sell online. My favorite though, the one that requires much less time and effort, is real estate investing. Actually, did you know more people become millionaires through investing in real estate than through any other path? It's true! This phenomenon is because you don't need to know how to write, design websites, or create products and market them. With some capital and dedication to research, you can invest in cash-flowing real estate and build your streams of income, one deal at a time. Passive investments in real estate syndications can earn between 8 - 10% annual cash-on-cash returns, plus additional income upon the asset's sale after an average of 5 years. For example, you could invest $100,000 and earn about $9,000 in passive income per year while doing very little work. Get a few of these going, and you build, brick-by-brick toward your income goal /freedom number ($11,000 per month in the example above). Even just an extra one or two thousand a month relieves some financial pressure and allows for more flexibility in your schedule. No matter how you choose to build your financial cushion - through real estate or online products or both, the main goal is to create multiple streams of passive income to reach your freedom number. Step 3 – Track Your Progress As you build each stream of income, it's quite fun to track your progress and see that passive income number increase over time. Whether you're an excel nerd or not, you'll want to establish a way to quickly see how much passive income you're earning each month and which investments are out-performing others. If you were to choose real estate syndications, for example, you could see that for every $50,000 investment, you'll earn about $350 per month in passive income. By this math, you might consider moving the $200,000 you have in the stock market over to syndications and begin generating $1,400 per month. While $1,400 is quite far from $11,000, it's a building block. Plus, it will probably more than cover your groceries for the month - one less worry. Each additional passive income stream you add covers another current living expense and acts as one more piece to your freedom number puzzle. One day soon, you'll reach the time where streams you feel comfortable reducing your work hours or quitting your job altogether, without experiencing an actual reduction in income. Recap Drastic changes and quick transitions can quickly stir up fear or worry in any responsible adult, but even more so if you feel the weight of providing for a family or achieving steep lifestyle/income goals. The biggest thing to remember, though, is that countless others have built passive income, as we discussed here, and you can too. The steps outlined herein will help you identify your personal, passive income goals, create a path toward creating that passive income, and track your progress. No matter your reasons for building passive income, following the three steps above will help you build the financial assurance you need to quit your job with confidence.
How To Find The Bright Side In A Recession, When You Should Buy
Each time a recession hits, it takes us by surprise - no matter if you've been through a downturn before or whether you're heavily involved in market trends examination or not. And on average, since 1900, the US has experienced a recession every four years. It's important to know what to expect and how to handle investments during this time. So, what happens to real estate in a recession? How much is the real estate market as a whole affected? And, the question on your mind, when is the right time to invest in real estate? To find out these answers, we'll look at previous recessions, prompting you to identify where the market is currently in its cycle. A look backward can help you look forward to the next few months or years and know when it's the right time to buy again. What is a Recession? When the economy shrinks for at least 6 months or two quarters out of the year, the negative growth is called a recession. The GDP (Gross Domestic Product) represents the total value of goods and services sold within a country. A recession is when the GDP goes down for at least six months consecutively. When GDP returns to pre-recession levels, that marks the end of the recession. Red flags that a recession is happening or is very close are spiked unemployment rates and erratic stock market fluctuations. Experts often look toward history and highlight traits of The Great Recession of 2008 or even the Great Depression in the early 1930s. By examining and understanding recessions and the sequence of events that occur before, during, and after a recession, you can purposely create life-changing wealth during the recovery period. Where are we now, what should we expect, and when should we buy? Based on previous recessions, here's what could happen to real estate during the next recession and recovery cycle. Track your recent experience and research of the US economy compared to the below stages, and you'll be prepared when it's the right time to invest. Stage 1 - Unemployment Rates Increase In the earliest stages of a recession, as I mentioned previously, unemployment rises. Unemployment is one of the big waving red flags that trouble is on the horizon. Businesses begin to feel the effects of fewer goods and services exchanged (remember GDP?). They may close their doors or choose to furlough or lay off employees. During the Great Recession of 2008, 2.6 million people were unemployed. During 2020, the US hit an astounding unemployment number of 30 million, a historical record. Stage 2 - Government Stimulus As we've seen in recent history (2008 and 2020) government may step in with a stimulus in an attempt to boost the economy with cash. Sometimes programs are offered to keep businesses afloat, sometimes eligible households are sent currency, and sometimes all of the above. Stimulus checks are a temporary band aid that gets cash into the hands of Americans to encourage spending. This is why, for the first couple of months of a recession, tenants still pay rents. But what happens when people are still unemployed, and they've spent their stimulus money? Stage 3 - Loan Defaults The longer businesses continue to close, and consumer spending decreases, the more likely we will see loan defaults. As tenants are unable to pay rent, real estate owners deplete their reserves, which results in a wave of defaults for residential and commercial loans. As defaults occur, banks start to take over the properties, which brings us to the next step. Stage 4 - Bank REO When loan defaults occur, banks foreclose on those properties. Then, a wave of bank REO (real estate owned) properties appears on the market. Since banks aren't in the property management business, they are anxious to sell these properties quickly at a discount. At this point, real estate investors should be ready with their checkbooks. Stage 5 - BUY! In examining the recent past's real estate pricing cycle, we saw peak market prices in 2019. So, when will bank REO properties begin to hit the market? This depends on several factors, including the speed at which the real estate market reacts, which is slow. Examine the historical trends - notice the "bottom" of the recession versus when REO properties become available. There could be years between these two events, which means patience is key. Stage 6 - Inflation A rise in inflation is the inevitable final stage of the recession cycle. Inflation results from additional money being flooded into the economy (remember stage 2?) and ultimately devalues the dollar. Inflation is precisely why the same dollar buys much less now than it did 10 years ago AND what makes real estate such an excellent investment. Real estate investments with a fixed-rate loan lock-in payments for about 30 years, hedging a bet against inflation. As your currency's value decreases, your mortgage payments remain the same, and your real estate values appreciate. What You Should Do Now Investing and market cycles and our individual experiences with these things comes with guaranteed uncertainty. However, by examining the history and economic fundamentals, we can better understand when each stage presented above will occur. On the tail-end of a recession, during the recovery, it's likely that you'll see unprecedented deals flood the market, and you want to ensure you're ready. In the interim, the best thing to do is focus on education & mindset, in addition to readying your personal financial situation so that when a deal hits, you can confidently invest. Find out your real estate investing Superpower…single-family, apartment buildings, crowdfunding, REIT’s. Take the quiz here! Real estate investing quiz To learn more about passive real estate investing and how to invest in upcoming real estate syndication deals, join the Ellis Chris Investor Club To book a FREE 30-minute RE Investing Strategy Call, go to
You'll Love The Possibilities When You Invest $50,000 In Real Estate Syndications
Fifty thousand dollars is a LOT of money. Never mind fifty thousand dollars per year. I get it, but hear me out. Once you see the potential results, I firmly believe you might be more willing to put forth the effort required to get there. I've seen regular people with regular salaries (even teachers!) do this and change their trajectories forever. So, as with most things in life, it's about resourcefulness, not resources. You can do anything you put your mind to, and seeing the progression of investing in syndications year after year might help you put your mind to it. Here's what could happen when you invest $50,000 a year into real estate syndications: Year 1 While the first year may not be that exciting, it's an accomplishment to invest your first $50,000. It's also pretty cool to pick out that first property. Let's pretend you select a 350-unit value-add multi-family unit in Dallas, Texas. Soon afterward, you begin to receive $333 per month in distribution checks, which is about 8%, an average for our standard deals. A decent, modest start at this point. Year 2 In the early spring, you receive your first Schedule K-1, which is the tax document that shows your income and losses from your first investment. We'll call that Dallas apartment complex from year 1 property A. Through the magic of our tax system, accelerated depreciation, and cost segregation, your K-1 for property A shows hefty paper losses, even though you enjoyed a respectable $300 a month since the deal closed. Those paper losses allow you to offset both your investment income and your regular income as well. This same year you invest another $50,000 into syndication B, which bumps your monthly cash flow from real estate syndication investments to $666 ($333 from each property, A and B). Year 3 This year, in the early spring, you receive two K-1 tax forms. Receiving the K-1s marks a turning point in your finances because from here forward, you'll begin to look forward to tax season! Soon you invest another 50K into your third deal, real estate syndication deal C. Afterward, you begin to receive 3 distribution checks each month, totaling about $1000. You've boosted your yearly income at this point by $12,000 annually. Year 4 Partially through the year, Real Estate Syndication A sends word that renovations are complete on the property, and the sponsors seek to sell. Because this property is in a hot submarket in a growing metro area, the listing gets a lot of attention and is soon purchased. Your original $50,000 investment from Real Estate Syndication A, plus an additional $25,000 in profits, is received. Woohoo! You play it smart and invest all your returns from Real Estate Syndication A ($75,000), plus the $50,000 you've saved in year 4, into Real Estate Syndication D. You now have a total of $225,000 invested across three syndications, each with a preferred return of 8%. The investments should yield about $18,000 annually in cash flow distributions ($1,500 per month). Year 5 Real Estate Syndication B (your investment from year 2) has completed its renovations and is sold by this time. You receive your original $50,000, plus an additional $25,000 in profits. Last year's deals worked beautifully, so you decide again to roll that $75,000 with this year's $50,000 all into Real Estate Syndication E, bringing your total invested capital to $300,000. Now your monthly cash flow checks start looking very good, totaling about $2,000 (equivalent to some people's net monthly salary). Years 6 - 7 Now that you're getting the hang of it let's start moving a little more quickly. In years 6 and 7, Real Estate Syndications C and D are sold, respectively. Each year, you invest additional capital of $50,000 to the returns you receive from those exited deals. In each year 6 & 7, you invest $125,000 into Real Estate Syndication F & G, respectively. Now, you have a total of $487,500 invested. Every month, you get six cash flow distribution checks (for Syndications B-G), totaling $3,250 per month, or about $39,000 per year. You're now nearing a decent career path's GROSS salary value. It's like you've got an invisible earner in your home generating income but not adding to any of your expenses. Because of all the depreciation benefits, you're continuing to show paper losses. Thus all this cash flow isn't being taxed. Years 8 - 10 Another three years pass. The kids grow, you've checked a few life experience must-haves off the list, and you're maturing into the life of a confident real estate investor. You've now been investing $50,000 every year for 10 years. The first six deals have exited, each time leaving you with a healthy return to reinvest. Over these 10 years, you've saved up $500,000 in cash, which is no small feat. You're smart and money-savvy, which is why you put that into syndications instead of mansions and Ferraris. So let's do the final round of math, shall we? In each of years 8, 9, and 10, syndication deals sold and left you with healthy returns to roll into the next investment. By the end of year 10, you have over $880,000 invested in multiple real estate syndications across multiple markets and asset classes, producing $70,500 in diversified passive income per year. That's more than the median household income in the US! If you were to invest $50,000 a year into real estate syndications, THAT's what happens. What Life Looks Like in Year 10 and Beyond At this point, you earn a passive income of over 70K per year, and that figure grows every year. You love your chosen career, so rather than quitting, you opt for a freelance lifestyle, giving you more flexibility to take longer trips with your family. You enjoy fun once-in-a-lifetime experiences, travel, swim with dolphins, enjoy yoga retreats, and stay in a glass igloo so you can dream beneath the Northern Lights. Good thing for those monthly distribution checks! You can often donate to charities and non-profit organizations that you love and be an active volunteer at your children's school and in your community. Perhaps the passive income funds a private school for your children, a personal chef, or helps fund an early retirement for your parents. Most of all, you rest easy with the confidence that you've created a lasting legacy for your heirs. Someday, they'll continue to invest and build their passive income. You won't have to worry about being a burden on them in your old age. Disclaimers You probably already know most of what I'm going to say here, but it's important to reiterate. Real-life investing is not as clean as it seems from this post. You can't predict exactly when a deal will exit, cash flow returns might not be precisely 8%, and you may not be able to find a great deal to invest in right when you're ready. The scenario we walked through together in this post is based on an average hold time of 3 years before the deal exits. While most of our syndications project a 5-year hold, most of them exit quite a bit sooner than that, often right after the renovations are complete. You should also notice that the example didn't include reinvesting the cash flow, which would further accelerate the growth. Rough calculations for capital gains taxes and depreciation recapture at the sale of each property have been incorporated. However, the operative word here is "rough." In the end, it's unlikely that you would see these exact numbers. It's possible that the numbers could be slower to grow, but it's also possible that you'll see much faster growth. This post is not meant to be a prescription. Instead, to demonstrate how diligence and patience, together with compounding returns, can dramatically change the course of your financial future. Conclusions Investing passively in real estate syndications is NOT a get-rich-quick scheme—quite the opposite. Investing in real estate syndications is a long-term strategy that should result in wealth built slowly but steadily over time. It's almost like farming. You have to plant the seeds, then wait a season or more before the harvest. Dabbling in house hacking, private lending, and out of state rentals might be your entry point. And if so, that's great because you're on to something. Hopefully, this 10-year plan opens your eyes to something bigger and better. There's rarely a well-trodden path, and even less often is the path laid out this clearly. Real Estate is worthwhile, but some investments are wins, and others aren't. This $50,000 at a time method is a predictable, operable, seemingly magical process anyone can implement to begin their syndication journey. And that's why we're investing in these syndications right alongside you. And, like you, we look forward to the next ten years using this stable, intentional, and low-hassle path toward growing our passive income and wealth.