Ascent Equity Group

On the flip side of active investing, you have passive investing, which are the “set it and forget it” type of real estate investment. You invest your money, and someone else does all the heavy lifting.

The great part about passive investing is that it IS 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 or eviction 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 operator and sponsor team) to manage the property and execute the business plan on your behalf.

Are you interested in this type of investing? Let us know in the comments below!

WHAT INFORMATION SHOULD INVESTORS GATHER BEFORE DECIDING TO PARTICIPATE IN A SYNDICATION?
Investors should conduct thorough research before participating in a syndication opportunity. It includes gathering information on the property, market conditions, location, and growth potential.

HOW DO SYNDICATORS RAISE CAPITAL?
Syndicators are individuals or companies that gather a group of investors, known as a syndicate, to participate in financial transactions such as equity offerings or debt. Raising capital is one of the syndicator’s primary responsibilities, which involves preparing a PPM and identifying and evaluating investment opportunities.

DOES A SYNDICATOR HAVE TO REGISTER WITH THE SECURITIES AND EXCHANGE COMMISSION?
Often, syndicators offer and sell securities without registering with the SEC ( Securities and Exchange Commission) due to various exemptions that exist.

WHAT ARE ASSET MANAGEMENT FEES?
Asset management fees range from 1 to 5% of your gross monthly income on a property. You’ll manage syndication, update investors, oversee property management, and assist with tax prep to receive this fee.

Let us know if you have any other questions for us. We would be happy to answer them all!

When most people think of real estate investing, they think of rental property investing – buy a duplex, find a couple of renters, and collect monthly rent 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 role in the investment.

The property managers may take care of the day-to-day issues, but you will still need to be involved in strategic decisions, including whether to evict tenants who aren’t paying, filing insurance claims when unexpected surprises happen, and sometimes having to put in additional funds to cover maintenance and repair costs. It’s a lot of work, but some people like being involved in the process.

As an investor, you should tailor investment decisions according to your goals and objectives.

Are you interested in this type of investing?