Passive Real Estate Short-Cut

Its no secret that wealth generation usually includes assets such as Real Estate. The ability to have your invested capital become an additional stream of income in a tax-advantaged structure without active involvement is very powerful. These assets are a strong hedge against market downturns and rising inflation. The perceived challenge that you need to become an expert in real estate or that it will require your time to operate or manage has held investors back from participating in the past. In recent years the ability to join a real estate venture or syndication as a silent partner (Limited Partner) has become very popular. The Limited Partner participates in the ongoing revenues, enjoys ownership priveledges in tax benefits, while letting the General Partner manage the business.

Common types of real estate include commercial, retail, or industrial, and may consist of Single-family homes, Multifamily complexes ranging from distressed assets to Class A new construction, self-storage facilities, and even mobile home communities. The spectrum of investing strategies ranges from; long-term buy and hold to short-term fix-and-flip, new construction, or light touch value-add updates. These strategies focus on investor return by increasing value, driving up rents, and reducing expenses.

My real estate experience over the last 15 years led me to Multi-family investing. Creating value through forced appreciation while the tenants pay the mortgage has worked well for me. I found that with more units, the risks spread across more tenants. At one time, my business owned 30 units and drove a rent roll of $350K annually with a steady income stream, something I am pretty proud of. As the number of units and the revenue grew, so did the demand on my time. Thus the realization that growing the business or scaling would have to be without active involvement, making my future investing decisions more complex. How could I add more cash-flowing real estate to my portfolio without paying others to manage my business? After a year of research and networking, through a sponsor (Broker-Dealer) I completed my testing and received my securities license for private placement in real estate and started Anthem Investing. Larger experienced syndicators will use the Broker-Dealer for funding for their projects. The Broker-Dealer group goes to the individual investor community with the opportunity to participate as LP.

In my first year, I have added 687 Multi-family units from Michigan and Phoenix, AZ to my portfolio. As a limited partner, this doesn’t require any of my time and will provide additional cash flow with the same tax advantages I have always enjoyed. These projects align with my experience for a value-added strategy; making the necessary improvements that will lead to increased rents and greater property value while paying out monthly distributions.

I am investing personally and working with busy individuals who want a strategy they can rely on to provide a strong return in cash-flowing, tax-sheltered, assets. We are onboarding new investors for upcoming projects.

Reach out if you would like to discuss how you can participate as an LP in Commercial real estate.