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Creating a Passive Income With Real Estate

Wouldn’t it be a relief to have a reliable source of passive income? A passive income rolls in regularly with very little work on your part and for the average person, real estate is one of the best paths to developing this kind of cash flow.

Let’s take a closer look at real estate syndication, which makes real estate investing easy and affordable. If you’ve always desired a passive income but weren’t sure how to make it happen, this could be a terrific option.

Average Investor, Meet Real Estate Syndication

Real estate syndication is an investment strategy where a sponsor/operator locates properties and shares them with you as potential investment options. You’re part of an investment group – or syndicate – that looks at the options your sponsor/operator presents and decides whether to move forward with investing.

Your sponsor/operator is someone with investing experience and well-earned wisdom about making money through real estate. Ideally, they have a full portfolio of projects where they have helped others successfully develop a reliable income from real estate projects.

They handle all of the legwork of identifying the potential projects and examining what needs to happen in order to make them profitable. As the syndicate investor, you simply agree to contribute your money to the project then sit back and wait while the sponsor/operator and other hands-on professionals manage the rest of the process.

Why Is This Type of Passive Income So Beneficial?

Real estate syndicates have become a popular method of passive investing for multiple reasons. First of all, they provide a low-stress way to invest in real estate for busy people who are short on time to spend on investing. That’s a huge benefit when your main focus is elsewhere: working, raising kids, running a business, or pursuing retirement.

It’s also an investment approach that works for middle-class people who don’t have millions of dollars to spend in real estate. With a group, you can invest in bigger and more valuable properties than each of you could afford – or even find – alone.

For example, your syndicate could invest in a large and undervalued multifamily property that could be renovated to deliver reliable returns. Your sponsor/operator might discover an apartment complex that just needs a facelift and a new marketing campaign. Afterward, the new occupants would support the passive monthly or quarterly income your investment group receives.

Real estate syndication also has significant tax advantages. Investors in real estate syndications have mostly tax-free use of the distributable cash flow from their investments, which is almost like getting an interest-free loan. As an investor, you could also see financial benefits when the property is sold or refinanced.

Of course, we must share a disclaimer that this should not serve as investment advice and each person should consult with a qualified financial planner before starting a new passive investment in real estate.

The Next Step to Building a Passive Income

What do you think? Is real estate syndication the right fit for your lifestyle? If you’d like to do a bit more research first, the Real Estate Syndication Show podcast is full of helpful information about real estate investing. 

We also welcome you to contact Life Bridge Capital to discuss forming a passive income partnership. And we’d like to leave you with this final thought: Within months, you could be receiving a reliable monthly or quarterly income simply by letting your real estate syndicate do its work.

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