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Partnerships, Syndicates, Real
Estate Investment Trusts
 Partnerships
Many people find investing with a partner gives them the
courage to begin investing. In addition, partnerships can increase
the amount of capital available to invest, thus allowing the partnership
to invest in higher quality projects than an individual. In some
cases, one partner provides the money while the other provides expertise
and oversees the management side.
Limited partnerships
A limited partner is a money only investor who does not participate
in decision-making or maintenance of the investment. The general
partner takes care of landlord responsibilities. Unlike a general
partnership in which a partner is personally liable for the partnerships
debts, a limited partner’s liability is limited to his or
her investment. The limited partner is not personally liable to
unpaid creditors.
Conversely, limited partners cannot utilize any tax loss from their
investment; therefore, it’s important that the decision to
invest in a limited partnership be based on income or expected appreciation.
Limited partnerships have fallen out of favor and there is now less
of a market for partnership interests.
 Syndicates
A syndicate can be categorized as a group investment. They are usually
a limited partnership set up by a general partner. Your decision
to participate should be based on the general partner’s track
record. If you are interested in this type of investment, it is
advisable to seek legal advice as to state regulations and securities
laws governing small syndicates.
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Real estate investment trusts (REITs)
Much like investing in stocks, REITs allow a small investor to have
ownership in multimillion-dollar properties. Shares are listed on
the stock exchange and can be purchased through a stock brokerage.
Under federal law, REITs must have at least 100 members and at least
95% of the earned income must be distributed to investors each year.
Many investors choose REITs because of the large dividends.
Investment clubs
Many investors get their start in the stock market through an investment
club. In it, members put in a specific amount of money and decide,
as a group, what to invest in. Real estate investment clubs work
the same way with investors purchasing property as a group rather
than stocks.
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Real Estate
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or call us directly at 310-285-7515. If you or anyone you
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