Real estate syndication has seen an exponential growth in popularity over the past few years and Harborside Partners has compiled a list of the most Frequently Asked Questions (FAQ) from potential investors and partners alike. Every deal and syndication is different and investors are urged to verify the answers below with the sponsor they are planning on investing with, before investing. Harborside Partners advises their investors and partners to consult both; an attorney and accountant prior to entering into any investment.
Intro To Syndication FAQ
What is real estate syndication?
Syndication is the pooling of money (financial equity) from passive investors (limited partners) to purchase properties. The general partners, making up the other half of the syndication, are the active partners. The general partners handle all aspects of the syndication, including; finding the property, arranging financing, executing the business plan and managing the asset.
What is the Private Placement Memorandum (PPM)?
The Private Placement Memorandum is the documentation required by the SEC and describes the investment in detail. The PPM is over a 100 pages and has multiple sections, including; the investment summary, partnership agreement and the subscription agreement.
The PPM also spells out every potential risk of investing. For a new investor who has never seen a PPM before, the lengthy risk section maybe a little daunting, but it is important that investors understand the risks associated with the investment.
The subscription agreement is the document investors will complete, review and sign. It includes; basic information on the investment, units being purchased, accredited investor’s declaration form and the total amount being invested.
Are your forecasts conservative?
Yes, our goal is to under promise and over deliver. Our conservative underwriting permits for a decline in occupancy or for lower than expected rents. We determine a breakeven point for profitability by conducting a sensitivity analysis.
Are your forecasts conservative?
Yes, our goal is to under promise and over deliver. Our conservative underwriting permits for a decline in occupancy or for lower than expected rents. We determine a breakeven point for profitability by conducting a sensitivity analysis.
Are your forecasts conservative?
Yes, our goal is to under promise and over deliver. Our conservative underwriting permits for a decline in occupancy or for lower than expected rents. We determine a breakeven point for profitability by conducting a sensitivity analysis.
Are your forecasts conservative?
Yes, our goal is to under promise and over deliver. Our conservative underwriting permits for a decline in occupancy or for lower than expected rents. We determine a breakeven point for profitability by conducting a sensitivity analysis.
Are your forecasts conservative?
Yes, our goal is to under promise and over deliver. Our conservative underwriting permits for a decline in occupancy or for lower than expected rents. We determine a breakeven point for profitability by conducting a sensitivity analysis.
Are your forecasts conservative?
Yes, our goal is to under promise and over deliver. Our conservative underwriting permits for a decline in occupancy or for lower than expected rents. We determine a breakeven point for profitability by conducting a sensitivity analysis.
Are your forecasts conservative?
Yes, our goal is to under promise and over deliver. Our conservative underwriting permits for a decline in occupancy or for lower than expected rents. We determine a breakeven point for profitability by conducting a sensitivity analysis.
Are your forecasts conservative?
Yes, our goal is to under promise and over deliver. Our conservative underwriting permits for a decline in occupancy or for lower than expected rents. We determine a breakeven point for profitability by conducting a sensitivity analysis.
Are your forecasts conservative?
Yes, our goal is to under promise and over deliver. Our conservative underwriting permits for a decline in occupancy or for lower than expected rents. We determine a breakeven point for profitability by conducting a sensitivity analysis.