Syndicated Real Estate Investing

Real Estate Syndication

How it works

A real estate syndication is a group of two or more investors (or companies) joining together to raise capital for a new property. The advantage here is that an investor is able to invest in a deal that is larger and more rewarding than an investor would be able to individually. And unlike a REIT (a fund), the asset is already identified in the syndication opportunity. An investor invests in a syndication knowing which asset they are purchasing. This type of strategy invests in a physical asset. The group is locked in for the agreed term, and it’s up to the sponsor on when to exit. It also offers tax benefits for the investors.

Investing with Stratiq

Syndicated Investments

Stratiq capital provides investors with syndicated investments, a fractional investment model whereby Stratiq leads a group of investors in the acquisition or development of a single property or single portfolio, through management and past the exit. The goals of these investors may be quarterly distributions, short or long hold periods, and exposure to niche real estate strategies to complement an existing real estate holding portfolio. 

High-net-worth investors and family offices typically invest in such syndicated real estate opportunities as a part of the diversification strategy. We provide these investors the opportunity to invest in a broad range of specific asset types. If you’re an accredited investor, please reach out and let’s have a conversation.

With a syndicated real estate investment, Stratiq Capital provides limited partner investors with the following services and benefits:

 

Syndication

Our Framework

A syndication is a transaction between a sponsor/general partner (GP) and the investor(s)/limited partner (LP).

Sponsor

Investor(s)

5-20%

The sponsor can invest between 5% and 20% and the investor will provide the remaining amount.

Investors that own a piece of the property receive distributions monthly or quarterly and earn a return when the sponsor exits the property. 

Syndication FAQs

Learn More

We provide these investors the opportunity to invest in property-specific fractional ownership of asset types such as:

  • Logistics Infrastructure 
  • Office Buildings
  • Retail Buildings
  • Industrial Buildings
  • Niche Assets (self-storage, RV park and mobile home communities)

There are many benefits to investing in real estate syndication. There is passive income, where investors can earn passive income distributions monthly or quarterly. It’s hassle-free, investors don’t have to do asset management. It also has tax benefits, appreciation, more choice in where to invest, and diversification. Unlike real estate funds, investors have little control over the property and the timing of selling or refinancing. However, a syndication is a way to make passive income that does not require much effort upfront.

There are certain requirements that have to be met to invest in a syndication. An investor must be an accredited investor. An accredited investor is defined as having an annual income of at least $200,000, or $300,000 with a spouse, to meet the basic financial threshold for investment, or have a net worth that exceeds $1,000,000. Alternatively, syndications are also available if an investor is a sophisticated investor. Sophisticated investors must have in-depth knowledge and experience. This allows them to become passive investors, as they have the ability to evaluate an opportunity investment before closing the deal.

There are two primary ways to make money via a syndication – property appreciation and rental income. The rental income is distributed to investors. Appreciation takes time, and over a period of time as the property appreciates, the higher the return when the sponsor exits the property. This can be anywhere from three to seven years. All of the profits and returns will always be per the agreed contract signed between the parties.