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Passive Real Estate Investing: Syndications Vs. REITs

Passive Real Estate Investing: Syndications Vs. REITs

October 27, 20236 min read

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Passive Real Estate Investing: Syndications Vs. REITs

In this week's issue, we're looking at how you can begin passively investing in real estate through Syndications and REITs!

RISE & Shine! It’s Another Great Day To Learn About Investing

Are you considering adding real estate to your investment portfolio but don't think you have the time and energy it takes to manage a property or become a landlord?

Did you know there's a way to diversify your investment portfolio and earn income from real estate without owning or managing a property yourself? Even better, you can do this while making a positive impact on your local community.

In this newsletter, we're going to introduce you to two of these options: Syndications and REITs

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How Do You Know If Passive Real Estate Investing Is Right For You?

If you've ever watched an episode of 'Flip or Flop' or one of the countless home renovation shows on HGTV, you know that investing in real estate can seem like a lot of work. From the manual labor required to flip a property, to taking on the responsibility of becoming a landlord if you decide to rent it out.

The good news is, as long as you are an accredited investor, there are plenty of options available to you that don't require the time or bandwidth that a house flip does. So how do you know if you are a good fit?

Joining a group investment, such as through a REIT or Syndication (which we will cover below), allows you to invest your money into a larger property with a group of people, with the aim of doubling your investment within the next five years.

These investments are often in multifamily properties, a type of real estate investment that is traditionally recession-resistant, and found in growing and emerging markets around the US.

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Choosing Your Investment Approach

In this newsletter, we'll explore the two top options for getting started in passive real estate investment: Syndications and REITs. Both offer a more hands-off approach without the need to directly own or manage a property, but they differ in significant ways, which we'll break down below.

Both options give you the opportunity to make a significant impact through your real estate investment decisions. Beyond financial gains, real estate investments can help better communities and enhance existing infrastructure. You will have the opportunity to invest in impact-driven syndications or REITs that might focus on improving your local community or supporting other female investors like yourself!

Do-It-Yourself (DIY): Syndications

A real estate syndication is a temporary partnership that pools investors for a specific property. These often require you to be an accredited investor, with a larger minimum investment, typically around $50,000. Though considered riskier than REITs since the investment is in one property, syndications can double your investment within several years.

With Some Help: REITs

Real Estate Investment Trusts (REITs) are entities that own and operate a portfolio of real estate. Publicly or privately traded, publicly traded REITs must comply with SEC regulations. They are viewed as more accessible, with no minimum buy-in and investments spread across various properties or sectors. While seen as less risky than syndications, the returns may be smaller overall.


MARK YOUR CALENDAR

Empowering Women's Wealth:
Transforming Money Mindset And Granting Permission To Learn Investing

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Join RISE The Movement with Audrey Faust, a Financial Coach & CFO in this webinar. Are you ready to take control of your financial destiny to make an impact?

This groundbreaking webinar is designed exclusively for women who want to break free from financial limitations and embrace a prosperous future!

REGISTER NOW

SUPERWOMAN SPOTLIGHT

Leslie Hale

Leslie Hale made history in 2018 by becoming the first African American woman to serve as chief executive of a publicly traded real estate investment trust (REIT), when she led her company RLJ Lodging Trust to go public. This multibillion-dollar hotel REIT marks a significant achievement in her career, but her journey began humbly in Los Angeles, culminating in a business degree from Harvard University.

Throughout her career, Hale has emphasized the importance of family involvement in her business decisions and investment strategies. “I am humbled and honored to be the first, but I have no interest in being the only,” said Hale.

FINANCE IN THE NEWS

This Week At a Glance

  • The Consumer Price Index increased for the first time in a year to 3.2% in July.

  • More data coming out of July shows that unemployment rates fell to 3.5% as 187,000 jobs were added last month.

  • As we wait for student loan payments to resume this coming October, new data from TransUnion shows that 20% of borrowers will be paying at least $500 in monthly payments, and more than half of all borrowers will pay over $200 a month.

  • This week the S&P 500 and Nasdaq Composite experienced a second straight week of losses, bringing about concerns of returned inflation in the US.

Improving Climate Change (And Your Taxes)

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The IRS has announced that new tax credits are available to homeowners looking to turn their home green!

By agreeing to implement energy related improvements to your home, you will qualify to receive tax credits for a portion of certain expenses, an expansion under the Inflation Reduction Act of 2022. You will also have tools available to your disposal to compare the credits and see if expenses you have already paid or plan to make will qualify.

Qualifying home energy improvements include upgrades to doors, windows, and insulation materials, as well as central air conditioners, water heaters, furnaces, boilers and solar, wind and geothermal power generation.

Next Week’s Sneak Peek:

Next week, we are continuing the discussion around passive real estate investing, introducing you to the first 5 steps you can take to make your first hands-off real estate investment!

Glossary:

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LET’S RISE TOGETHER!

@risethemovement

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Regardless of whether you are scared to take the first step or you are ready to dive right in, there's an Investment strategy perfectly suited for you. At R.I.S.E we are committed to guiding and supporting women investors at every stage of their investment journey because we believe the key to success lies in education and informed decision-making

R.I.S.E. the Movement is an educational platform designed to provide informative resources and foster discussions related to personal finance and investing. We are not registered financial advisors, and the content presented on our platform should not be construed as investment advice. Any information shared or discussed on this platform is for educational purposes only and should not be considered as a substitute for professional financial advice. It is important to conduct thorough research and consult with a qualified financial advisor or professional before making any investment decisions. R.I.S.E. the Movement does not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any actions taken based on the content presented. By engaging with R.I.S.E. the Movement, you acknowledge and agree to release the platform, its creators, and contributors from any liability arising from your use of the information provided.

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