Real estate syndication could be one of your most lucrative moves. Photo credit: Unsplash
Updated April 13, 2024. Are you interested in the great benefits of real estate syndication? As you may know, investing in residential real estate may be one of the most lucrative moves you could make. Our passion is to help you to actively and passively invest in apartments and hotels. Usually the next question is how do you go about doing it.
Many times investors have been buying, improving, and maintaining real estate with their own funds. These investors want to scale their buying of real estate, but their own funds have been exhausted. These investors realize that they can only scale if they have partners. This is where syndication can help these investors to continue to grow their wealth in real estate. Therefore, let’s take a look at the specific details of the great benefits of real estate syndication.
What Are The Benefits Of Syndication?
Definition: Real estate syndication, property syndication, or real estate partnership are alliances that are made between several investors with the common goal of making a real estate investment in properties such as apartment complexes or hotels.
Two Main Parties Involved In Real Estate Syndication
The Sponsor: The person or company with sweat equities, also known as the syndicator.
The Investor: You and your partners contributing the money and are known as limited partners.
Real Estate Syndication & The U.S. SEC
Real estate syndication is an investment contract between you and the syndicator. The syndicator collects the investor’s funds and performs real estate work such as buying, improving, and maintaining the property. As a result, it becomes a “security” as determined by the U.S. Securities and Exchange Commission (SEC).
Please refer to SEC Rule 501 under Regulation D to attain more information.
Accredited Investor Criteria
An individual must meet at least one requirement related to income or net worth.
Annual income: If you have an individual annual income of at least $200,000 USD or $300,000 USD with a spouse for the last two years and expect to earn the same amount or more in the current year.
New worth: If you have a net worth exceeding $1 million. The $1 million plus is without including the value of your primary residence.
Take Action With Syndications
Many real estate investors have heard of syndication, but they don’t know how to structure a deal. Syndications can be tricky. The time to build a network of investors, partners, and having boots on the ground may seem daunting. That keeps a lot of people from pursuing the syndication route.
This is where mentorships come in handy. What if that mentor already had a real estate network that you could lean on to get a syndication deal done? But what if you could connect with a general partner who already had a mentor who is ready and willing to walk you through the process from start to finish.
A passive investor is one who does not participate in the day-to-day decisions of running a company. Basically, you let your money work for you, rather than you working for your money. As a result, you can sleep well knowing that your money is working for you. Furthermore, participating in real estate syndications will help each person achieve their financial freedom that much sooner.
Let us know if you are interested in the great benefits by becoming a passive investor through real estate syndication. Next time an awesome deal comes up we will reach out.
Investing In Real Estate During A Recession
Real estate investing during a recession can be a very wise move. Investment in properties can be an intelligent decision if your goal is to build long-term wealth and financial stability. As you have probably seen, the stock market and other traditional investment options are extremely volatile with excessive moves in either direction during times of the economic downturn. However, real estate has a history of holding its value and providing steady returns. Find out some of the key Benefits Of Investing In Real Estate During A Recession.
Profit From Substantial Inflation Ahead
Profit From Substantial Inflation Ahead. Let’s take a look at how to profit from the substantial inflation that is already starting to happen. The US government has been printing massive amounts of new money. On January 6, 2020, the US Federal Reserve had around $4 trillion dollars. On January 4, 2021, the number increased to $6.7 trillion dollars. As a result, as of 2021, over 40% of US dollars were printed in the last 12 months.
A Bible Verse From Psalms
Psalm 128:2 NLT
2 You will enjoy the fruit of your labor. How joyful and prosperous you will be!
Have a great day!
Last Updated on April 13, 2024 by Financial Goodness
Financial Goodness
George Alexander Roy III and our team are experts in helping you to seek wealth through investing and tips on how to succeed. Join us at FinancialGoodness.com to increase your knowledge through education in the areas of personal finance, real estate, and investments. George has been an owner of a real estate investment business that focuses on wholesaling, fix & flip, and long-term buy-and-hold property strategies with a consistent increase of annual revenues. Consequently, as an entrepreneur, researcher, writer, and speaker he has sought the truth in everything he does, no matter how difficult. Hopefully this value and service will help each person achieve their financial freedom sooner.
Stack of $100 US dollar banknotes. Photo credit: depositphotos.com
Real Estate Myths
Updated April 13, 2024. There are a lot of myths in real estate investing. One of these myths is the most successful real estate professionals have perfect timing. However, if you think of this, it is absolutely not true. This would mean that these “professionals” buy when the economy is down and sell when the economy hits the absolute peak. Well this my happen sometimes, but the vast majority of the most successful real estate professionals apply specific strategies that always work. Here are three real estate investing strategies that work every time.
Three Strategies That Work
These three real estate strategies are: residential rentals; wholesaling; and fix and flip. These three strategies are among the most popular real estate strategies that produce consistent results regardless of the timing. Think about this for a moment, when you are doing your best financially it is usually in a good economy. Why? The prices of real estate are going up. For example, right now in January 2020 the prices of real estate are trending higher.
The Secret For Real Estate Guru’s Timing
The question is: how can you time it so that you can buy when the prices are low and sell when the prices are high? Well…
You can’t do it. It doesn’t make any sense unfortunately. You cannot take advantage of something like that. Clearly, you are not in that type of situation. If you think about it, it is really impossible to predict the future six months or a year from now.
The Future Is Not As Certain As The Past
Everyone knows the past. But how about this: right now are we in a real estate bubble? Some will say yes and others will say no. The point is no one has a crystal ball and can predict the future. No one really knows until we can look back six months or a year from now and can see what really happened.
What makes these strategies so important is that regardless if you have enough money in your pocket, and regardless if you can time the market, you can do these three strategies to increase your wealth.
Gain More Wisdom As Time Passes
As you get older you get smarter. You gain wisdom, knowledge and understanding. So with each year you are better and have more tools to be a real estate investor. Therefore, with each potential year you can apply the wisdom you have gained so you can apply it quickly to each house or apartment.
These three strategies will transform the way you look at real estate investing in the future. That way you can apply them at any moment in time. Then with more experience you will get better and better at them over time and become successful.
Here Are The Three Real Estate Strategies
Let’s get back to the three real estate strategies. This is my blueprint of the three real estate investing strategies that work every time and in any market. So our strategy is a combination of residential rentals, wholesaling and then balance that with rehabs to resell.
Residential Rental
The first one is rentals. But more specifically we am talking about residential real estate where people live in the property. People always need a place to live in good times and bad times. Typically when the economy goes down more people will rent. Residential rentals will always work if the numbers work. In fact, buying rentals will increase a person’s wealth more than any other strategy out there. If you do this correctly, are you ready to be a millionaire??!!
Need For More Capital
But the problem with rentals is that you need money. You need money for the down payment, money to fix up the house in some cases, money in the form of something like a line of credit so that if a tenant doesn’t pay you have to pay the mortgage temporarily while you evict and the related legal fees.
Wholesaling
This is where wholesaling comes into place. You put a property under contract directly from the seller. There are no agents listing the house on the MLS, these are off market deals. You go directly to the seller and made a deal.
Then you need to resell the property to a retail buyer or an investor. Basically you’re getting the property under contract at a wholesale or lower price and then you sell the property to another investor or at retail. Look to buy single family residences if possible. We recommend single family houses because they are the most plentiful. But depending on your market this could be apartments or condos. Here is the good news, in this real estate market right now, this strategy is working very well!
Right now, after 2018 and 2019, when a lot of people made money in the stock market, people are looking at real estate after the shakiness they saw in 2019 in the stock market. A lot of these people are in there 50’s or 60’s and are looking to invest their money wisely and some are looking to park their money in real estate.
When selling the wholesale properties, look for what are called sucker buyers. These are people that will offer you the most for the house that you have under contract. These people are willing to pay ever more for the house than you know it is worth.
If the dollar value from these buyer’s is the best price for the house, ask if they have all the documents to do a mortgage with a lender. Also, be sure to ask if they have approval for a mortgage. Obviously time is of the essence.
90% Of Investors Only Do 1 Deal
Have you heard that over 90% of real estate investors do one deal only? One deal! This means that only 10% are doing one deal after the other. The 90% may have lost money or not make much money. These 90% come in and buy one house. They go fix it up themselves. Then they realize it was a lot harder and a lot more work than they thought. Then guess what? They go and move on to something else in life.
So these 90% are always new people every time you wholesale a house. Can you believe it?! Remarkably this is very much the case. Therefore, take advantage of this never ending source of retail buyers!
Wholesaling Will Always Work
Wholesaling will always work because there will always be new people wanting to buy houses to fix them up. On top of this, houses are always deteriorating over time. For example: bad roofing, exteriors, the look of the houses is constantly changing, floor styles, paint colors, kitchens, bathrooms, etc.
Houses always need to be remodeled on a consistent basis. Always. If the houses are not constantly being maintained and improved, then the house becomes more difficult to sell and falls into the wholesaling category.
There are people that are looking to buy real estate thinking they are going to get rich quick. You absolutely cannot lose if you buy these wholesale houses at the right price. These three real estate investing strategies that work every time are a no-brainer, win-win-win situation!
Fix & Flip / Rehab And Resell
The third way to make money on houses is fix and flip or it is also called rehab and resell. This is where you buy the house, fix it back up and resell it. The reason why this always exists is again the fact that residential real estate is always deteriorating. Once you buy the house and get everything in your home, generally people are reluctant to fix everything.
For one thing, it is expensive, and it is a difficult task when you have all of your stuff in the house already. So the majority of people that buy homes normally don’t fix them up continuously to keep the market value increasing as the housing that are looking to be resold.
Look For Distressed Properties
There are always going to be deals in the real estate markets. One reason for these deals is that something happened that is completely separate from the market. These are what we call personal issues. A perfect example of this is a grandparent passes away and deeds the property to a son or daughter.
In case the son or daughter is extremely happy, but a lot of the time the son or daughter is broke financially and doesn’t have the money to handle this house. Often the son or daughter just wants money and they want it right now.
To top it off, the person who owned the house originally hasn’t done repairs in a long time. The house is old and outdated. This is a personal issue that is always going to exist. There will always be people passing away. This creates a consistency that will always need to be filled.
You may have the question of “What if I am in a market that is no longer hot. When people are no longer selling their houses for top dollar. Properties are sitting on the market longer. How do I buy a property and make sure I can do the rehab and resell and still make a profit?”
First of all, it is very important that you move quickly. You have to have all of your contractors lined up and ready to go. If you are not in a position of rehabbing the property in one to two months and get the property back on the market, you want to consider wholesaling.
Put Houses Back On The Market Quickly
So be careful about sitting on a property. One thing is fixing the property as fast as possible. The other factor is how fast you sell the property. You need to put the property on the market for as low of a price as possible. By doing this, you can generate instant offers. It has got to be fast. The rehab and resale of the property will always work consistently as long as you move fast.
If you need to get permits and other government documents you better consider your options. Sometimes the government is going to take months to approve things. That will slow down progress substantially. If you work on a property for six months, let me ask you a question. Do you know what is going to happen six months down the road? The answer is no. I have no idea what the economy is going to be like six months in the future.
Sometimes you can get fortunate when the market continues to go up. You can make a lot of mistakes in the last few years and still come out nicely when the market continues to go up and you have been able to fix your own problems. But now certain market in the upper price points things are not like that anymore. Builders have built enough inventory. An example is the coastal markets in the United States, especially in the west coast where prices have leveled off when you get up above the prices for affordable houses. You tend to see a lot more inventory in the luxury house markets, so be careful.
Do All Three Strategies To Create Wealth
There are a lot of myths in real estate investing. However, the vast majority of the most successful real estate professionals apply specific strategies that always work. We hope you liked my blueprint of the three real estate investing strategies that work every time.
What is nice about wholesaling is that you have a lot less risk. The problem with wholesaling is that you don’t make as much money. You will make a fraction of the price that someone is going to pay in the end to own the house. When you buy a property wholesale, then rehab and resell the property you are selling to a retail buyer. Retail buyers pay the most money. So you can make more profit.
But wholesaling has less risk. So a strategy that works very well is a combination of wholesaling and then balance that with rehab to resell. This way you are always flipping properties. With this strategy you can build up enough cash and capital so that you can start buying some residential rental properties. The residential rentals can then create long-term wealth.
If you are interested in Becoming A High Net Worth Individual, please read my blog and watch the YouTube video by a fancinating guy named Andrew Hendersen, founder of Nomad Capitalist. He believes that the world has changed forever and says it’s time for you to “go where you’re treated best.”
These three real estate investing strategies that work every time are the keys that have made real estate investors very wealthy. They are the win-win-win strategy to real estate wealth. I have made very nice profits with these property strategies and I am sure you can too. Until next time, best wishes!
Last Updated on April 13, 2024 by Financial Goodness
Financial Goodness
George Alexander Roy III and our team are experts in helping you to seek wealth through investing and tips on how to succeed. Join us at FinancialGoodness.com to increase your knowledge through education in the areas of personal finance, real estate, and investments. George has been an owner of a real estate investment business that focuses on wholesaling, fix & flip, and long-term buy-and-hold property strategies with a consistent increase of annual revenues. Consequently, as an entrepreneur, researcher, writer, and speaker he has sought the truth in everything he does, no matter how difficult. Hopefully this value and service will help each person achieve their financial freedom sooner.
Updated April 13, 2024. Santa Barbara is the best neighborhood in Bogota. Colombia’s capital, Bogotá, is brimming with hotspots that draw more and more locals and visitors each year. For example, Usaquén, and more specifically Santa Barbara, are definitely experiencing a renaissance. As a result, Santa Barbara is by far the city’s most vibrant one, packed with antique stores, modern cafés, outstanding eateries and a popular Sunday market.
Real Bogotanos Live In Santa Barbara
To illustrate the culture of the area, if you want to know how real “Bogotanos” live, look no further than Santa Barbara. Consequently, this is by far one of the most authentic and energetic neighborhood in the city. Additionally, if you look at the architecture of the buildings, the new urbanism is shaping the area with the property owners making the transitions with the construction companies to construct newer design buildings.
Map of Santa Barbara Neighborhood. Photo credit: Google Maps.
Santa Barbara Lifestyle
For those looking for new apartments for sale in Bogotá, Santa Barbara is the area to that promises exciting news. Accordingly, the northern neighborhood of Santa Barbara is taking a large move towards modern architecture. Furthermore, the new buildings have many amenities as well, including security, entertainment and community services rooms such as business suites that are all equipped with the latest smart technology.
For this reason, if you would like to find out more information go to Properati.com.co. Or click on the Neighborhood Guide and scroll all the way down to Santa Barbara, because for me, the best neighborhoods in Bogota include Santa Barbara. Quite simply, Santa Barbara is a gem of a neighborhood.
Price Comparisons
Let’s look at a price comparison of properties in the Santa Barbara area and compare that to the prices of properties in Cedritos, Bella Switzerland, and Chico. Likewise, if we glance at the website properati.com.co/guia_de_barrio/santa-barbara we can see that the price for apartments in Santa Barbara is just below $6 million.
Overall, the price of apartments in Santa Barbara is more than those in Cedritos and slightly more than those in Bella Switzerland, but less than the apartments in Chico Norte, which is just to the south of Usaquén on the south side of diagonal street named Diagonal 92.
In my opinion, Santa Barbara is the best neighborhood in Bogota. Santa Barbara’s new modern urban buildings are a buy for the price, the value, and strength of the U.S. dollar.
Let’s calculate the Colombian prices to US dollar prices. As of today, Tuesday, December 12, 2019, 1 US dollar (USD) equals $3,382 Colombian pesos (COP). By the same token, let’s also assume that the average price for Santa Barbara neighborhood is approximately $5,950,000 COP. Doing the math $5,950,000 divided by $3.382 equals 1.759 per m 2. For those of you not used to thinking in square meters let’s take a look at what this can buy and you will probably be very surprised at the affordability.
Updated June 27, 2022. The US dollar exchange rate continues to climb against the Colombian peso. As a result, currently 1 US dollar (USD) equals $4,135 Colombian pesos. In short, this is an awesome time to invest in Colombia and take advantage of the great exchange rate!
Why Invest In Colombia?
The World Bank catalogues Colombia as the fifth country in the world, among 183 countries, and as the first in Latin America, to protect investors. In fact, the Colombian investment atmosphere has been considered as one of the most favorable for foreign investment. In addition, Colombia is one of the most open economies, in terms of percentage of property own by foreigners, in Latin America.
Four Apartment Examples In Central Santa Barbara
In our opinion, Santa Barbara is the best neighborhood in Bogota. Take advantage of the strength of the US dollar and invest in a residential home. Clearly, Santa Barbara’s new urban buildings are a buy for the price, the value, and strength of the U.S. dollar.
Here are four apartment examples that I found online today. To show a comparison, the first apartment is a brand new one bedroom apartment. However, the other three apartments were not new, but they are similar, modern apartments.
Finally, I was quickly able to find a one bedroom, two bedroom, and three bedroom apartments for comparison. All of these apartments are listed on the website by LA HAUS at lahaus.com.
Example Of A Brand New Apartment
The first apartment is located at Vita 118 location in central Santa Barbara. The unit has one bedroom, two bathrooms, and two parking spaces for a total of 73 m 2. The price is $511 million.
You can see this apartment online at www.lahaus.com/p/vita-118-apartamentos/bogota. The description of the new apartment at Vita 118 says the amenities include a swimming pool, fitness center, and a jazucci. As equally important, the outside aesthetics of the building are quite simply beautiful and amazing.
New one bedroom apartment in Santa Barbara Central, priced at $511 million COP. Photo credit: lahaus.com.
More Apartments In Santa Barbara Central
Firstly, I scrolled down the web page of Vita 118 until it said “More Properties in Santa Barbara Central” and clicked to enter to search for more real estate for sale. My computer immediately went to lahaus.com/propiedades/bogota/santa-barbara/santa-barbara-central.
Secondly, I was looking for a one, two, and three bedroom apartment. Ideally, I was looking for apartments that were newer and modern as a way to reduce overhead maintenance costs. Moreover, I was also looking for better priced deals. For this reason, I found these four apartments to do a price comparison, but there were other apartments in the same price range, as you can see in the chart I created below.
Santa Barbara Central Apartments
Bedrooms m 2 Price COP Price USD
1 BR – New
73
$511,000,000
$151,094
1 BR – Modern But Not New
55
$315,000,000
$93,140
2 BR – Modern But Not New
79
$480,000,000
$141,928
3 BR – Modern But Not New
117
$540,000,000
$159,669
Comparisons: Santa Barbara Apartments
In general, the price for the brand new one bedroom apartment was definitely higher at $511 million COP or $151,094 USD. In addition, the outside of the apartment complex is beautiful, possibly has a more exclusive address, and the amenities could make a difference.
However, from a real estate investment point of view, the one, two, and three bedroom apartments, that are also located in the same Santa Barbara Central area, were all newer and modern. In addition, the total prices were much more affordable.
In conclusion, if you are looking to purchase one of these apartments for yourself as a home or as a rental, we would have to suggest that the better deal would be to buy a newer, modern apartment for a much better price.
Furthermore, for the last ten years the prices of real estate continue to increase in value annually. Therefore, going forward, if the prices of real estate continues to increase, as it has been doing in the last ten years, you will be glad for the future equity in your property.
Below are the details of the modern residential apartments that are for sale with the current owners. However, please do your due diligence to determine the IRR for these properties. In conclusion, our outlook is that there are some good deals for buying a house for your family or for added rental income if you look in the Santa Barbara area of Usaquén neighborhood.
One Bedroom Apartment:
Modern one bedroom apartment in Santa Barbara Central, priced at $315 million COP. Photo credit: lahaus.com.
Firstly, this one bedroom apartment that I found at lahaus.com, says it has one bedroom and two bathrooms, with one parking space. Also, this apartment has good lighting and ventilation, with a functional fireplace in the living room. Additionally, it is close to a wide range of shopping centers, restaurants, and banking. This one bedroom apartment is near Carrera 15, Calle 127, and Autopista Norte. Finally, the price of this one bedroom apartment is $315 million COP.
Two Bedroom Apartment:
Modern two bedroom apartment house in Santa Barbara Central, priced at $480 million COP. Photo credit: lahaus.com.
Three Bedroom Apartment:
First, I scrolled down and found a three bedroom, three bathroom apartment that looks new and modern. In particular, the description says this duplex penthouse is strategically located close to the Unicentro Bogotá Mall and is close to supermarkets and parks.
Second, the area is quiet and well lit. The first level contains dining room, remodeled kitchen, laundry, and bathroom. The second level contains the three bedrooms, a study, and two bathrooms, one with a jucuzzi. In addition to this, there is an elevator and two parking spaces. Finally, the price for this three bedroom 117 m2 apartment complex is $540 million.
Modern three bedroom apartment house in Santa Barbara Central, priced at $540 million COP. Photo credit: lahaus.com.
Conclusion
In our opinion, Santa Barbara is the best neighborhood in Bogota. At this time, Santa Barbara’s new urban buildings are a buy for the price, the value, and strength of the U.S. dollar.
In conclusion, are you interested in taking advantage of the excellent opportunities in the capital city of Bogota, Colombia? In this case, if you are interested in purchasing a rental property, but are not sure about how to complete the process, please read my blog on how Everyone Can Buy And Own Property In Colombia. Overall, this article has many details about how to buy the affordable real estate in Bogota or Medellin that have the potential for excellent returns.
Last Updated on April 13, 2024 by Financial Goodness
Financial Goodness
George Alexander Roy III and our team are experts in helping you to seek wealth through investing and tips on how to succeed. Join us at FinancialGoodness.com to increase your knowledge through education in the areas of personal finance, real estate, and investments. George has been an owner of a real estate investment business that focuses on wholesaling, fix & flip, and long-term buy-and-hold property strategies with a consistent increase of annual revenues. Consequently, as an entrepreneur, researcher, writer, and speaker he has sought the truth in everything he does, no matter how difficult. Hopefully this value and service will help each person achieve their financial freedom sooner.
