DISCOVER 3 BENEFITS FOR LIMITED PARTNERS

Do you ever feel like you don’t have enough time to find great investments?

Have you ever thought that you don’t have enough money to invest in real estate?

Is it a struggle to balance family or personal life with work and finding time to manage your investments?

Are you working a job that limits the time you have to find opportunities?

Or do you have a business that requires much of your time?

Maybe you just find it more efficient to generate income through a job or business and let someone else help you with growing your investments.

“Life is like a roll of toilet paper.  The further along in life you go, the faster it spins.”  Those were the words from a pastor at a church we attended.

Many investors have found a solution that allows them to maintain a better balance.  They saw and wanted the benefits of owning real estate, but did not feel like they had enough time to invest in it.

Limited partnerships in real estate can offer good returns and may come with some surprising benefits.  Let’s take a look at some of the benefits that we have seen and enjoyed.

One place that we particularly like is as a limited partner in a multi-family partnership, such as a syndication.

ONE.  Benefit From Other People’s TIme (OPT)

You get to benefit from Other People’s Time.  

This is probably the most commonly viewed benefit of limited partnerships and why people invest in them.  Someone else manages the investment, while the financial benefits are split between all partners.

TWO.  Benefit From Other People’s Money (OPM) Without Your Credit

You can get the use of Other People’s Money without using your own credit.

Leverage is one of the tools that makes real estate so profitable.  You have probably seen this when buying a house.  A new homeowner can purchase a house with only 3-5 percent down payment.  An investor with good credit may need to put down 20-30 percent for the same property.  So a $200,000 property might appreciate at 3-percent a year due to inflation, or $6,000.  Assuming a $60,000 down payment, that would be a 10-percent return on investment just due to appreciation.

As a limited partner, you can get this benefit without having to sign for the loan or using your own credit.  

You might ask, How does this work?

It’s simple.  The general partners obtain the credit and are responsible to make sure the loan is repaid.  This is frequently done in multi-family investments with commercial loans.  The limited partners then get the benefit of the loan without having to sign for it.

THREE. Benefit From Other People’s Experience (OPE)

Investing is a team sport.  One of my favorite quotes from a high school gym reads, “Individuals play the game, but it takes a team to beat the odds.”

Harland and I have previously discussed how we have benefited from different partnerships.  Every one of them is a learning opportunity.  Most partnerships are entered because we expect to make a good profit.  Similar to watching our favorite sports teams, our expectations for a new season are significantly based on the prior season.  The record sets expectations.

Some of the partnerships also provide good educational opportunities.  Sometimes we choose to partner with successful people and learn from them.

During my first investment in a mobile home park I was able to see how adding additional spaces could significantly increase cash flow and market value of the park.  As a passive investor I was able to better experience and understand some of the business models behind mobile home parks.  This helped me to better evaluate subsequent opportunities.

We like to partner with people who have a good track record.  We like to have experienced partners on our team as it helps us to make better decisions.  

CONCLUSION

Limited partnerships, such as multi-family syndications, can offer opportunities to get the benefits of investing in real estate while getting back some of your time.  Not only do they require less time commitment, but they can also offer learning opportunities and expertise from experienced investors.

HELP US GET TO KNOW YOU BETTER

Join us at noon Eastern time on the third Wednesday of each month as multi-family investors network and engage in conversations about how to be better investors.  We discuss opportunities and what we are doing in the current market. 

Engage with other multifamily investors like you.

Attune Investments provides a better return for our investors.  And we make a positive impact in people’s lives and in our world.

If you want to learn more about how others are investing with us then we invite you to join our club and request a conversation with us.  See below.

Through the power of a syndication partnership with other investors like you, working with managing partners who are experienced in managing apartment complexes, you can own multifamily assets.  

Or you can choose to loan money, get in with a clear return, and get out earlier.  If you haven’t already subscribed to our BLOG, you can increase your knowledge and comfort with this asset class by subscribing now.  It’s free.  We publish an article every week.  SUBSCRIBE HERE And take one more step. Become a member of our ATTUNE INVESTORS CLUB in which you have more personal access to us.  JOIN HERE.