TESTIMONIAL
Sharee P. - Investor
I’ve always wanted to get into real estate but didn’t want the headache of being a landlord. I had never heard of syndications till I met Cash-Flowing Investments. I did my first deal in Weslaco and can say it’s one of the best investments I’ve ever made. I love receiving my quarterly dividend payments. Needless to say, I’m in the Cash-Flow Club and looking forward to investing in the next deal.
Janelle P. - Investor
I’ve already done a few deals with the Cash-Flowing team. They’ve been great to work with and my K1s and quarterly payments are always on time. Syndications are the way to go. I get appreciation, depreciation, and cash-flow, without any of the headaches. I’m on the list and will continue to pull the trigger. Thanks again for making it easy to invest in real estate.
Ryan T. - Investor
I’m always looking for alternative investments–esp real estate investments that don’t require me to be a landlord. I need the tax benefits, but I don’t need the headaches. I’ll continue to invest with Cash-Flowing Investments because they do all the heavy lifting. I simply send a wire. No brainer for me.
Lorem - Investor
I've been investing with Cash Flowing Investments for over a year now, and it's been a great experience. The team is knowledgeable and always available to answer any questions I have. Their investment opportunities have provided me with a steady stream of passive income, and I appreciate their focus on tax efficiency. I highly recommend Cash Flowing Investments to anyone looking to invest in real estate Made up 🙂
Frequently Asked Questions
A real estate syndication is a way for investors to pool their resources together to invest in larger real estate deals that they may not be able to afford or manage on their own. In a real estate syndication, a sponsor or syndicator identifies an investment opportunity, structures the deal, and then invites individual investors to contribute money to the project in exchange for an ownership stake.
The syndicator is responsible for managing the investment and making key decisions related to the property, while the investors receive regular updates on the progress of the investment and a share of any profits generated. Real estate syndications can take many forms, including limited partnerships, limited liability companies (LLCs), or real estate investment trusts (REITs).
Investing in a real estate syndication can be a way for individuals to diversify their portfolio and gain access to larger, potentially more lucrative real estate investments, while spreading out the risk. However, it’s important to carefully evaluate the risks and potential returns of any investment opportunity before committing funds.
Both CFI and REITs generate investment returns through real estate. However, we differ in the following ways:
REITs are typically designed to generate fees for the manager, while CFI is in the business of generating investment returns for both us and our investors.
Our deals operate through an LLC structure, which means that all tax benefits (such as depreciation and interest expense) pass through to investors. In a REIT structure, the tax benefits are captured at the REIT-level and any income paid out is taxed at the ordinary income rate.
REITs often pay substantial fees to advisors to ‘sell’ their product. We don’t pay a middle man to ‘sell’ our investments, which means lower fees for the investor and more dollars invested into properties.
REITs take investor money upfront, even though they may not have properties to invest the capital. This creates pressure to invest money, which they either invest in cash or public securities. They can also pay investors a dividend with their own equity if they don’t have ample cash flow.
CFI operates under a direct-deal structure, which means that we ask for capital only after we’ve found a property. Capital is returned to our investors after a property sale or refinance or from operating cash flow.
REITs derive the majority of their fees through transactions, while ours come after the investor makes money.
At a minimum, we provide quarterly updates on our investments and provide full transparency into our investments and process. A Private REIT is not obligated to provide investors with similar transparency.
Our projects typically anticipate a hold period of 5 to 10 years, but the duration may be influenced by several factors. It is advisable to keep your money invested until the asset is sold. Throughout this period, you will receive regular cash returns, but the principal amount cannot be withdrawn.
However, we acknowledge that unforeseen circumstances can arise. In the event of a significant life event that necessitates your exit, we will make every effort to assist you in exiting the investment. If required, we may even purchase your shares ourselves.
The returns projected for each investment may differ, but the types of returns you receive will be consistent across all investments. Cash on cash returns are paid out on a quarterly basis, and you will also receive your share of the proceeds generated from the sale or refinancing of the asset. This will enhance your overall return on investment.
We have identified several US metropolitan areas that exhibit robust fundamentals, such as population growth, job growth, rent growth, multiple transportation options, and proximity to universities, providing access to an educated workforce.
Investors have the option of investing in their personal capacity or via an LLC. As the property is invariably owned by an LLC, and there is insurance coverage, there exist several layers of protection at the property level. It is advisable to seek advice from a certified public accountant or an attorney while determining the most suitable manner to hold your investment.
Indeed, the majority of our deals are 506(b) offerings that require accredited investors to participate.
To qualify as an accredited investor, you must meet at least one of the following criteria:
- Earned an annual income of $200,000, or $300,000 for joint income, in each of the previous two years, with a reasonable expectation of earning the same or greater income this year.
- Possess a net worth that exceeds $1 million, excluding the value of your primary residence.
A K-1 form, akin to a 1099, provides a summary of the annual tax income. Each investor is issued one K-1 form per investment. K-1 forms are widely used in partnerships and real estate ownership. During the initial years of a real estate investment, the K-1 form typically displays significant losses due to depreciation. These losses may be utilized to offset other types of income.
The cap rate is determined by dividing the Net Operating Income (NOI) – which is the property’s revenue minus the required operating expenses – by the purchase price. For instance, if a property generated $500,000 of NOI in the past 12 months and was purchased for $10 million, the initial cap rate would be 5.00% ($500,000 divided by $10,000,000). Commercial properties are assessed based on cap rates; thus, any efforts to enhance the NOI would boost the property’s market value.
Negative. Nevertheless, non-US investors are subject to specific U.S. federal income tax responsibilities that vary from those of US investors. We strongly recommend that non-US investors seek guidance from their tax advisor to examine the tax implications.
