How Does Passive Ownership Work?
You can carry on with your everyday life while the money that you invested is working for you. In working along side the syndicator you have passive ownership in your investment, but do not have to deal with the day to day activities of being a property manager or asset manager-that is our responsibility. Your only obligations is your capital commitment to the deal.
Low Entry Barrier
Passive ownership gives investors access to large real estate investment opportunities, that would otherwise be unattainable. As a passive owner you get to work with real estate professionals that have the knowledge, team and experience to execute on behalf of the ownership group.
Unlike stocks or REIT, passive owners of real estate receive the same advantages as active owners. There are four ways that money is made in each transaction: cash flow, appreciation, loan pay down & depreciation (paper loss). Each year the ownership group is able to deduct losses from their income, relative to their ownership stake. It is called a phantom loss because you are able to deduct it, however, the property is producing revenue and experiencing appreciation in its value.