SYNDICATION GROUP BUYS
Emma Powell
? BUSINESS: Paying 10-12% returns backed by real estate, what we invest in ourselves for early retirement. ? PERSONAL: Full-time Travel Homeschool Mom of 6 ? FAMILY BUSINESS: Pitch Deck Design to Attract Investors
In the financial world, the word "syndication" just means people getting together to do a project together. Some provide money, others provide experience, and still more provide the work needed to run the day-to-day business.
Syndications are a fantastic way to both specialize and diversify by contributing where you bring the most value and work with a team to accomplish bigger projects that need more human and capital resources.
SYNDICATION: FINANCIAL DEFINITION
"A syndicate is a temporary alliance of business partners.
Syndicators join together to manage a large transaction that is difficult or impossible to effect individually.
Syndications often involve a pool of passive investors (Limited Partners) to provide capital to purchase a property or business managed by one or more entrepreneurs (General Partners)."
Source: www.investopedia.com/terms
LIMITED PARTNERS
Financial securities involve “Limited Partners” (LP) and are Regulated by the Securities and Exchange Commission (SEC) because LP’s do not control the business activities, they enjoy extra protections that managing business owners do not.
The US Supreme Court in SEC v. Howey 1946 define a “Limited Partner” as
“A person or entity [who] invests money in a common venture and is led to reasonably expect profits derived from the entrepreneurial or managerial efforts of [others].”
Under the “Howey Test” Ruling, persons investing in such a security are limited partners both in liability and any possible loss amounts to no more than the amount of their investment.
PROTECTION AND TRUST
When giving up control of a business after you invest money, you exercise both trust in another to handle your capital with expertise while you focus on another area of your own expertise as well as invoke protections.
2024 is filled with stories of real estate properties and businesses making higher loan payments on variable debt that skyrocketed beyond even the most conservative projections, both with the higher interest rates and paying for increasingly expensive interest rate caps.
As projects underperform in the face of higher payments and less money going into running the actual business, many investors are finding their projects under performing and some have even faced a total loss of capital on some properties or business investments.
However, there is another layer to this loss that limited partners may not realize they are enjoying. LP's understand they do no work, a pro and a con depending on your ability to identify and trust expert managers.
Limited partners are "off the hook" for working the business, and are therefore also not "off the hook" for any outstanding debt the business must pay back, and in some cases the manager might have to pay back from personal assets.
LP's are also not subject to any legal or regulatory liability from lawsuits or investigations from anything like a "slip and fall" case or raising capital with unethical assertions or company structures.
A good manager will protect the business in all but the most daunting economically challenging times. A good limited partner will invest carefully to avoid loss, but also to understand that loss is limited and invest accordingly.
Syndications offer the ability to diversify while avoiding much of the risk of running a business from time spent, legal issues, regulatory compliance, or ongoing financial losses from paybacks or clawbacks.
In exchange for proper due diligence and trust amid lack of control, limited partners in a syndication reduce business risk while enjoying more free time and upside in a deal.
Use the syndication tool wisely to build your wealth.
RESOURCES AT RISE!
We offer free events every week, and free info to get you onto the path of changing your life through real estate investing.
领英推荐
Speaking of learning to trust others, there are some ways to get started building a relationship anonymously without getting on an email list or other (annoying) follow up campaign.
Check out the free articles on our blog as a way to learn about investing and learn about us before reaching out.
Every Monday night, we host a FREE joint venture investing club where investors analyze deals, learn how to invest in commercial real estate, and invest either passively or as a group to manage actual deals.
We have open networking at our NEW TIME from 5-5:30pm MT, followed by group deal evaluation or an occasional speaker 5:30-6:30pm MT.
Join us to get started or pivot in commercial real estate with a lower barrier of entry! We've helped dozens of investors get into their first large commercial deals.
Every Tuesday, we release a podcast episode chronicling the Passive Income Adventures of our host ???Emma Powell?? and guests as they share their stories of changing their lives through entrepreneurship and investing. We just wrapped up Season 01 at the end of 2023, so feel free to binge listen to all 52 episodes!
Listen, rate, review, and subscribe and all that anywhere you listen to podcasts for a weekly dose of inspiration and education on how you can join us in #financialfreedom or #earlyretirement!
Every Thursday we host an online learning event or workshop.
For lunch and learn style, join "Relax With Rise" on a LinkedIn and YouTube LIVE event sharing strategies and stories on how we've retired early on passive income.
The third Thursday night of each month we hold an online class "After Hours with Rise" on techniques to build wealth and retire early: you can register for event reminders on our site.
FIND US ON SOCIAL
???Emma Powell?? is @passiveincomeadventures on YouTube
ZASHA SMITH, P.E. is @investwithzasha on Instagram
Lais Keese is @momabundance on Instagram
Raquel Rigby Director of Operations
??Harmonie Borden?? Operations
Troy Powell Director of Technology
BOOK A CALL (when you're ready to talk about scaling your wealth)
Changing your future starts with a simple phone call at partnerwithrise.com. Looking forward to talking to you soon!
Helping You Build Your Wealth and Achieve Your Financial Goals Through Trusted Partnerships, Multifamily Investing, and Passive Income | Real Estate Syndicator | Gonzalez Realty Investments
9 个月Just reposted! This article provides great insight for LPs not only expressing the great benefits of being an LP but also the importance of due diligence on their part as well. We all have a part to play in a Syndication!
Making Real Estate Knowledge Accessible I ReTalk Podcast Host I Serial Entrepreneur I Tech & Finance Enthusiast I Former Banker I #TopRealEstateVoice
9 个月☆ Emma Powell, great insights on the importance of capital in real estate and the benefits of syndication. Trusting experts and leveraging group buys can truly maximize investment potential. Thanks for sharing!
Engineer????Real-Estate Pro| MultiFamily Syndicator??| Wealth Strategist??| Traveller??| Reader??| Ex-Qualcomm
9 个月sounds like a reliable alternative for hands-off investors who value teamwork and extra protection.
? BUSINESS: Paying 10-12% returns backed by real estate, what we invest in ourselves for early retirement. ? PERSONAL: Full-time Travel Homeschool Mom of 6 ? FAMILY BUSINESS: Pitch Deck Design to Attract Investors
9 个月In exchange for investing your capital with more trust and less control, you get zero management work, no legal liability, and other protections.