Frequently Asked Questions by Investors
What is Syndicate Path?
Syndicate Path is a financial technology company that enables investors to participate in the ownership of larger income properties than they otherwise would be able to access. The goal is to provide investors with passive income on a continuing basis. Because a bank is funding most of the purchase price of the property, investors get the advantage of a thorough due diligence process paid for by the bank.
What is real estate syndication?
A syndicate is a group organized to fund the purchase of a real estate property looking for a return on their investment. A Syndicate Path syndication is a group that provides the down payment for a property that will be primarily financed by a mortgage loan from a bank.
Can anybody be an investor?
Investors must verify, with our help (it only takes a few minutes and is all done online), that they meet the requirements of the SEC as “accredited investors”.
How many investors can there be?
There is no fixed limit to the number of accredited investors allowed, however, a Syndicate Path syndication is designed to be around 100 or fewer total investors.
What is the minimum or maximum amount I can invest?
Unless other jurisdictions require otherwise, there is not a maximum requirement. Syndicate Path, in keeping with the broker/sponsor, wishes to keep the investor pool manageable. Minimum investments may be as low as $5,000, depending upon the property.
What type of return can I expect from my investment?
Returns vary from property to property and of course, no return is guaranteed. Typically real estate syndications of this type offer from 3% – 5% more yield than fixed income assets.
Is this type of investment a good investment compared to other investments?
Everyone has a different idea of what makes a good investment and what makes an acceptable risk. Real estate syndications are usually long term investments and are often part of individual retirement accounts. The investors own the building (with a lien from the bank) in which they invest, which is different from real estate investment trusts or REITs. Investments in syndications provide a steady income but are not as liquid as other investments.
How do the payouts work? How is my equity assigned, as shares of stock? If so, what type of stock?
Investors will become members in an LLC which is governed by an operating agreement that all investors will review and execute. Depending on the type of property, investors should receive payouts either monthly or quarterly.
Can I cash out my shares early or sell my shares to somebody else?
There is not a standard marketplace for private syndications. The securities that you purchase will be illiquid. Generally, your investment will not be returned until the underlying property is sold.
Can I have any international investors?
There is no rule forbidding foreign investors. The jurisdiction involved may have restrictions and the SEC has Federal compliance requirements listed here.