What is Real Estate Syndication?
How are Creative Realty Partners’ Syndications Structured?
How are Profits Split in a Real Estate Syndication?
What are the Functions and Duties of the Sponsor?
Do I Need to Be an Accredited Investor to Invest with CRP?
If I am Not a United States Citizen, Can I Invest with CRP?
Does CRP Offer Any Guarantees? 
Do I Need to Qualify for a Loan?
How Do I Receive CRP’s New Offerings?

 
What is Real Estate Syndication?

Real estate syndication offers a unique opportunity for passive investors to diversify their portfolio by participating in the acquisition and ownership of multiple real properties. By pooling financial resources with others, investors are able to participate in large scale projects with high returns that would otherwise be impractical, either financially or strategically.

In addition, syndication offers investors the opportunity to partner with a Sponsor who is a seasoned, professional real estate expert and benefit from their knowledge, expertise, and track record.

By investing in a real estate syndicate, investors are able to realize all the benefits of property ownership without being directly involved in the acquisitions process, arrangement of financing, and day to day management usually involved in property ownership. This simplifies complex real estate investing strategies and affords the investor a truly passive real estate investment.
 

How are Creative Realty Partners’ Syndications Structured?

Creative Realty Partners’ real estate syndications are structured as Limited Liability Companies and come with built-in protections for all parties. CRP (the Sponsor) acts as the Manager while the investors are passive members. The rights of the Sponsor and Investors are detailed in the LLC Operating Regulations which highlight information such as timing of distributions, voting rights, Manager duties, etc.

 
How are Profits Split in a Real Estate Syndication?

Our investors make money in two ways; rental income and property appreciation.

In CRP deals, Investors receive monthly distributions based on their investment amount and the cash-flow of the property. Upon resale, in addition to their original equity, the investors also receive a lump sum based on the resale profit. All profits above a pre-determined return are split based on previously agreed upon percentages which are tied to performance benchmarks, called hurdles.

In essence, the greater the overall performance of the investment, the more the investors profit and the greater the Sponsor is compensated. This structure is a win/win for Sponsor and Investor as it incentivizes the Sponsor to ensure the maximum performance of the investment.

 
What are the Functions and Duties of the Sponsor?

The Sponsor’s duties are broken up into three phases; Origination, Operation, and Liquidation.

The first phase, Origination includes;

  • Sourcing multifamily investments
  • Researching and underwriting said investment/s (including, but not limited to financial underwriting, market research, market rental comparable analysis, future performance analysis, area demographics and crime)
  • Sourcing and qualifying for financing
  • Coordinating the acquisition of the property
  • Providing the earnest money for the acquisition
  • Retaining legal counsel for creation of all legal documents
  • Conducting all pre-acquisition property due diligence
  • Engaging property management

The next phase is the Operation phase which encompasses the sponsor’s day to day management of both the syndicate and the real property, including overseeing all property improvements. During this phase, the Sponsor provides monthly reports to the investors, detailing the progress and performance of the investment.

The final stage is the Liquidation phase in which the resale of the property transpires.

 
Do I Need to Be an Accredited Investor to Invest with CRP?

If you are a U.S. Citizen, yes.

The Securities and Exchange Commission has set forth certain investing guidelines in order to protect investors in the U.S. In the United States, to be considered an accredited investor, one must have a net worth of at least one million US dollars, excluding the value of one’s primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.

 
If I am Not a United States Citizen, Can I Invest with CRP?

In most cases, yes, though it depends on the specific laws of your country.

 
Does CRP Offer Any Guarantees? 

No. All investments carry some amount of risk. It is up to you, the investor, to decide if an investment is suitable for your needs and to choose an investment company that you trust and that you believe can and will perform.

 
Do I Need to Qualify for a Loan?

No. Creative Realty Partners qualifies and signs for any property financing.

 
How Do I Receive CRP’s New Offerings?

Simply fill out the contact form on this page with “Newsletter” in the message to be added to our mailing list and automatically receive all new offerings. Alternatively, you can creative an account on this page to view our current offerings and be added to our mailing list for new offerings.