Can you get rich from real estate syndication?

Can you get rich from real estate syndication?

Our culture has been shaped to expect very fast outcomes. Google yields search results in seconds. Video entertainment can be as short as 5 seconds, and Twitter has made the most out of 280 characters.

We have learned to expect to get things quick, short, and sweet.

While many real estate investors during the pandemic went down the Airbnb rabbit hole and generated massive returns, the post-pandemic world has changed with raising interest rates. One interesting chart is below.

This chart illustrates the consumer credit outstanding vs. savings as a % of disposable income. A year ago the conversation was about Americans saving more than ever. We can see below that has changed drastically. Savings has dropped tremendously.

While AirBNBs are a great way to generate big returns it becomes more challenging for investors to do so with rising interest rates and a decline in bookings.

How to get rich with real estate

The definition of rich means something different to everyone.

When asking if you can get rich from passive real estate investing, I would want to go a step deeper and ask a few questions.

• Are you trying to preserve your wealth, build wealth, build long-term cash flow, and capital appreciation?
• Are you seeking to double or triple your money very quickly to create more income and growth?

The real estate syndication business is not a get-rich-quick decision for investors. While many of our investors have put in a tremendous effort over the years with fix and flips, AirBNB investing, house hacking, and the Brrrr Method, investors do not come to invest in our syndication deals to get rich quickly. Investors typically are investing in recession-resistant assets for the long haul. To build and preserve wealth.

If you are seeking to build wealth quickly and take on more risk,  actively managing your own capital with one of the examples above may preferred style of investing for you.

Syndications are a preferred way to preserve and grow wealth

Billionaires love investing in real estate. Young hard working individuals also find tremendous success in creating wealth in the real estate world as well by adding value quickly and using leverage to build a portfolio. Real estate is one of, if not the best way, to build wealth in America.

There are 5 incredible reasons why investors love real estate syndications to preserve and grow their wealth. Real estate (RE) is a hard asset, RE uses leverage, RE is inflation resistant, RE appreciates, and there are significant tax incentives.

If you are a business owner who doesn’t have time to manage airbnb’s and rentals, we break down why real estate investing is important for business owners.

Many high-income earners don’t care to spend nights and weekends hustling to exponentially grow their wealth by actively managing a real estate portfolio.

If you are the type who enjoys getting off work, analyzing deals, working with contractors, dealing with tenants, and investing nights and weekends to build a portfolio you should! It is not for everyone. What syndications allow are a hands-off approach to earn cash flow and returns across 5-7 years which can be deployed into the next deal, with no extra hours worked per week.

The Takeaway

Passive Investing in apartment syndications is great when it comes to preserving wealth. Some folks want to get rich quickly, those typically take on active roles of management and do not mind much higher risk. Real estate syndications are a passive and less risky way to grow your capital over time so that you can sustain your wealth and grow/compound that wealth into the future. 

To learn more about how real estate syndications and multifamily investing can help you, reach out to our investor relations team and learn more about the benefits. 

Be blessed and have a great week!