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Introducing The Key Roles In A Real Estate Syndication

11/22/2019

 
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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
  • Timbermoss Capital

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5 Reasons You'll Love Investing Passively in Real Estate Syndications

11/15/2019

 
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If you’ve ever experienced owning single-family or multifamily homes, you know that these investments require time and energy.

Investing in residential real estate can be challenging because, typically, you as the investor wear many hats throughout the seemingly never-ending process. Responsibilities include finding the property, funding the deal, renovating the property, interviewing tenants, and even performing maintenance.

The trouble is, it doesn’t stop there. You have to repeat most of the process over again when your tenant’s lease is up.

​Why Investing in Multifamily Rentals Can Be a Lot of Work

Small multifamily rentals have some advantages over single-family homes. For example, if one tenant moves out, the tenants in the other units are still there to help cover the mortgage. Plus, it’s much easier to manage one property with multiple tenants than to manage multiple properties with one tenant each.
​
But, even with a property manager on board to help with your rentals, bookkeeping, strategic decisions, and maintenance/repair costs are still in your court. You’re basically running a small business, which can be challenging if you’re working a full-time job.

The Case for Passive Real Estate Investments

On the flip side, there are fully passive investments in commercial real estate. These are professionally managed and operated investments so you don’t have to deal with any of the three scary T’s - Tenants, Toilets, and Termites. Oh my!

According to Forbes, once investors begin to understand passive commercial real estate investments, it’s common for them to move toward syndications. Here’s why:

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5 Reasons Real Estate Is The Most Effective And Lucrative Investment

11/5/2019

 
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The vast majority of people spend their lives working full-time jobs to earn a “steady” paycheck.

Meanwhile, the wealthy have somehow unlocked the secret to working less while making their
money work for them.

So what is it that the wealthy know that the rest of us don’t?

One of the biggest secrets that the wealthy tap into is the incredible power of real estate. Real
estate has the ability to generate passive income and provide a path toward building wealth.
​
Every dollar invested in real estate works for you in these five ways:
  • Cash flow
  • Leverage
  • Equity
  • Appreciation
  • Tax benefits

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The 5 Basic Phases Of Value-Add Multifamily Real Estate Syndications

11/5/2019

 
​Do you remember the 5 paragraph essay structure from elementary school? Having guidelines
to introduce a central idea, provide 3 supportive paragraphs, and close with a strong conclusion
provides freedom and structure all at once.

​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, which ensures individual investors operate as one, according to a
clear business plan.

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    Justin Grimes

    Ally in generational wealth creation & protection.
    Proud husband & father.

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© COPYRIGHT 2020-2021. ALL RIGHTS RESERVED.
Timbermoss Capital does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Timbermoss Capital and may lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment. Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources that Timbermoss Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees and expenses. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.
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