Frequently Asked Questions
Are you new to Real Estate Syndications & Passive investing?
Here are some frequently asked questions
What Is A Real Estate Syndication And What Does It Mean To Be A Passive Investor?
A real estate syndication is when a group of people pool together money to purchase real estate. Vidente Capital would be the sponsor (aka managing partner) of the syndication. The sponsor would find a property, make sure it would be profitable, negotiate the purchase, and handle the day to day operations.
What is an accredited investor and do I need to be one?
An accredited investor is a single or married individual that makes an annual income (salary, wages,tips, rental income,etc) of $200,000 or more or a married couple making $300,000 or more to qualify jointly. This individual or couple must have made this amount for the past 2 years with expectations of making the same or more this year. Has a net worth exceeding $1 Million when considering all assets and liabilities including real estate (excluding primary residence). While most of our investments are only available to accredited investors, we do offer some investments for non-accredited/sophisticated investors
What is the minimum investment?
This amount varies depending on the deal, but the typical minimum is $50,000
What returns should i expect to receive on my investments?
Exact returns will vary from one investment opportunity to the next, but in traditional multifamily syndication deals, the return structure will be similar. You will receive cashflow throughout the lifecycle of the project and then you will receive your share of the profits from the sale at the end of the project. In our free investor course, we show you real deals that are in progress or have been completed and the returns the investors received.
What Are The Risks?
How Long Should I Plan To Have My Money Invested?
If I don’t have to do anything, who takes care of the property?
There will be an in-house leasing agent maintenance team overseen by a property management company. But you’ve all heard the saying “When the cat is away, the mice will play”. No one will work harder to ensure your investment is performing at it’s peak, than you! That’s why our team will have weekly and as needed calls and frequent visits to the property to ensure the business plan is being carried out as expected and to take swift, necessary action, in the event that it’s not.
What are acceptabe sources of money to invest in your deals?
Most investors use cash (money saved or an inheritance) and this will allow the greatest flexibility in how your cashflow returns are used. Many rollover money from their retirement account and invest through a solo 401k, self directed IRA, or an eQRP. The ability to use the cashflow for everyday expenses will likely be limited when investing through an IRA. When we touch base, we can talk about some of the creative ways investors use to fund syndications, such as the cash value in their life insurance policy.
What are the tax benefits? And what is an eQRP and how can it help me?
The tax benefits of investing in syndications are already incredible, and this just sweetens the deal! Typically you are able to practically wipe out any tax you would pay on your monthly cashflow income by balancing it with depreciation, however you would likely be responsible for paying UBIT on the equity gained upon sale of the property. An eQRP is a specialized type of solo 401k that allows you to eliminate UBIT (Unrelated Business Income Tax). This should not be confused as tax advice. We are not tax professionals, and always advise you to speak to one regarding tax concerns, but we are happy to share our experience and to assist you in setting up an eQRP account if you decide it’s the best path for you.