Introduction:

At TR Capital Partners, our focus lies in making your money work for you, rather than you tirelessly working for it. Naturally, you may be wondering about the potential returns from investing in one of our commercial real estate syndication deals.

A common question among potential investors is, "If I were to invest $50,000 with you today, what kinds of returns should I expect?"

We completely understand your curiosity. You want to know how investing in a multifamily real estate syndication can generate passive income and whether it's worth the risk compared to other real estate investment opportunities.

In essence, the question boils down to whether real estate investment is a wise choice for you.

To assist you in answering this question, it's important to note that we'll be discussing projected returns. These projections are based on our experiences as limited partners and deal sponsors for numerous real estate syndication deals, as well as thorough investment analyses. However, it's crucial to understand that these returns are not guaranteed, and like any investment, there are inherent risks involved. The examples provided here are intended to aid you in developing your real estate investment strategy.

Key Factors for Commercial Real Estate Syndication Returns

Let's begin by discussing a prevalent asset type in real estate syndication: multifamily apartment buildings. Understanding how these properties generate revenue will help you grasp how commercial real estate can provide passive income for investors.

Multifamily real estate primarily generates revenue through rental income, with potential additional streams such as laundry services, parking fees, and storage rentals. Consequently, the value of commercial real estate, like multifamily properties, is determined by its revenue.

In a value-add multifamily syndication, the sponsor team implements renovations, upgrades, and other improvements to increase the property's value. By enhancing the property's condition, attracting higher-paying tenants, and optimizing operational efficiency, the sponsor team creates a surplus between income and expenses. This surplus is distributed as cash flow to passive investors.

In this discussion, we'll explore the three most critical factors to consider when evaluating real estate syndication investment opportunities:

1. Projected Hold Time

2. Projected Cash-on-Cash Returns

3. Projected Returns at Sale

Projected Real Estate Investment Hold Time: ~5 Years

The projected hold time is a straightforward concept—it represents the number of years we plan to hold the asset before selling it. This duration indicates how long your funds will be invested in the deal.

Most real estate syndication investments typically have a projected hold time of 5-7 years. This duration allows for market cycles and the completion of value-add strategies before selling the property.

A five-year hold period offers several advantages:

• It aligns with typical life events and investment horizons, allowing investors to plan accordingly.

• It provides ample time for value-add initiatives and market appreciation before exiting the deal.

• It accommodates fluctuations in market conditions, allowing for flexibility in timing the sale.

Projected 7-8% Returns Per Year From Cash Flow

Cash-on-cash returns, also known as cash flow or passive income, represent the income generated for limited partners after expenses.

In some real estate syndication opportunities, investors receive preferred returns, prioritizing them for cash flow distributions. Assuming an investment of $100,000 with an annual return of 8%, the projected cash flow would amount to $8,000 per year or approximately $667 per month. Over five years, this totals $40,000 in passive income.

Comparatively, traditional savings accounts offer significantly lower returns, highlighting the potential benefits of real estate syndication investments.

Projected 40-60% Profit Upon Sale

The anticipated profit upon sale constitutes a significant portion of commercial real estate syndication returns. Our aim is to achieve around 60% profit for investors within five years.

Typically, real estate syndication investments aim for an annual appreciation rate of around 10%. With improvements and market appreciation over five years, the property's value increases, resulting in substantial profits upon sale.

What Kind of Returns to Expect from Investing with Us

In summary, our typical deals involve:

• 5-year hold

• 7-8% annual cash-on-cash returns

• 18-20% average annual returns

• 40-60% profits upon sale

• 2-2.5x your initial investment

For instance, investing $100,000 in a commercial real estate syndication with us could yield $8,000 per year in cash flow distributions and $60,000 in profit upon sale, totaling $200,000 after five years.

While these figures provide a general overview, it's essential to conduct thorough due diligence and consider your investment goals before committing to any real estate syndication opportunity. Real estate syndications can be a valuable addition to a diversified investment portfolio when approached thoughtfully and strategically.

Whenever you're ready, there are 4 ways we can help you:

1.    Schedule A 1:1 Call With Me: If you are interested in learning more about how to passively invest in some of the best opportunities, let's connect. Schedule a call on my calendar and we can discuss potential opportunities that align with your specific goals.

2.    The Passive Investors Guide: Download your free copy of our investor's guide. Inside you'll learn how to turn your active income into passive income with strategic real estate investments based on your specific risk tolerance. This comprehensive guide will teach you how our investor's are earning ~ 20%+ annual returns with hands-off, multifamily real estate investments.

3.    Investing w/ Your 401k/IRA: Join hundreds of other investors who invest in lucrative real estate investments with their old 401k/IRA's. Our webinar teaches you exactly how to invest in cash-flowing real estate and stop settling for average returns that typical retirement accounts offer. Go ahead and watch the replay for actionable tips on how investors are earning 16-20%+.

4.   Money Monday's Newsletter: Check out our weekly newsletter - Money Monday's, where we share practical tips to guide you on your wealth-building journey in real estate every Monday Morning.