H Squared Capital, LLC
4 Myths About Real Estate Syndication
Updated: Nov 14, 2022
Myth #1: All real estate syndications are the same.
This myth couldn't be further from the truth! There are many types of real estate syndications, each with benefits and risks. For example, some syndications may focus on a specific property type, such as multifamily homes or office buildings, while others may invest in a geographic region or target a particular market niche. The key is to find a Syndication that aligns with your investment goals.
Myth #2: You must be an Accredited Investor to participate in a real estate syndication.
While it's true that most syndicators do require their investors to be accredited, there are also some that welcome non-accredited investors. The key is researching and knowing what each syndicator is looking for in an investor.
Myth #3: Real estate syndications are only for wealthy investors.
This myth is perpetuated by the fact that most syndicators require their investors to be accredited, typically having a net worth of at least $1 million or earning over $200,000 annually. However, as we mentioned in myth #2, this rule has some exceptions. So if you don't quite meet the requirements to be an accredited investor, don't despair—you may still be able to participate in a real estate syndication.
Myth #4: Real Estate Syndication Is Risky
Many believe that real estate syndication is a high-risk investment, but this isn't the case. When done correctly, real estate syndication can be quite a low risk. How is this possible? When you syndicate a deal, you're pooling your resources with other investors, spreading the risk and minimizing your exposure.
Additionally, experienced sponsors will typically invest their own money into the deal alongside their investors, which shows that they're confident in the project's success. And finally, most syndicated deals are structured so that investors are only responsible for the capital they've invested—not any additional debt or liabilities. Contact us today if you have any questions or want to learn more about our current opportunities.
Real estate syndications can be a great way to invest passively in the real estate market without going alone. However, it's essential to do your due diligence and separate fact from fiction before making any decisions. We hope this blog post has helped you do just that!
Over at H Squared Capital, we build relationships with the best-in-class multifamily Operators to provide you with income-producing multifamily assets. Let H Squared Capital do the hard work and accept most of the associated risk while you invest passively and continue doing what you love.
Download your Operations Manual Here. In the Operations Manual, you will learn how passive investors leverage Syndication to create Passive Income to grow their wealth for their future generation and create the ability to make an impact!
For more information on getting involved in a value-add multifamily syndication deal, don't hesitate to contact me at Hutch@HSquaredCapital.com or Dr. Heath Jones at Heath@HSquaredCapital.com. You can also visit our website at www.HSquaredCapital.com. We'd be happy to answer any of your questions and help get you started on the path to financial success through multifamily investing!