FAQs

  • Real estate syndication is a partnership or pooling of resources between a group of investors to collectively purchase and manage larger real estate assets that might be difficult to acquire individually. In essence, it allows individual investors to co-invest in a real estate project that they otherwise may not have the financial or operational capacity to pursue on their own.

  • Pros:

    • Passive Income: Investors receive regular distributions from rental income.

    • Diversification: Investors can participate in larger deals with lower risk exposure compared to owning property outright.

    • Professional Management: The sponsor takes care of the operational aspects, making it hands-off for the investors.

    • Tax Advantages: Real Estate investments offer certain tax incentives that our investors can take advantage of.

    Cons:

    • Illiquidity: Real estate investments are generally illiquid, meaning that investors may find it difficult to sell their stake in the property. (This excludes REITs, which can be traded like stocks.)

    • Shared Control: In most real estate syndications, investors have limited influence over property selection and management, as these responsibilities typically fall to the sponsor.

    • Choosing the Right Partners: It's crucial for investors to select a skilled and reliable real estate sponsor and cultivate a good working relationship. Failing to do so can lead to significant challenges, conflicts, and financial losses. Conducting thorough due diligence is key to ensuring a successful syndication.

    1. Income-Based Qualification:

      • The individual must have an annual income exceeding $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the last two years.

      • There must be a reasonable expectation of maintaining the same income level in the current year.

    2. Net Worth-Based Qualification:

      • The individual must have a net worth of over $1 million, either alone or with a spouse, excluding the value of the primary residence.

      • This net worth can include assets such as investments, retirement accounts, and other properties, minus liabilities.

  • The short answer is YES!

    One option that many people have available to them is investing in our deals through a SDIRA (Self Directed IRA).

    Please inquire with us to learn more.

  • At Harkness Investment Partners, our top priority is safeguarding our investors' wealth while helping them grow their legacy. With three generations of experience in real estate investment, our founders deeply understand the expertise and collaboration required for success. Our firm is built on three core pillars: alignment of values, alignment of goals, and unwavering integrity toward our investors and their families.