Increasing global financial turmoil has caused many individuals to rethink their investment strategies. One of the best alternatives to market-traded equities is income producing real estate, which has traditionally been resistant to the volatility inherent in stocks, commodities, and mutual funds. Many financial planners recommend 20% to 30% of an investment portfolio be comprised of real estate assets.
Investors often consider residential real estate as a means to build their portfolios. However, becoming a landlord is an enormous undertaking that requires market experience, contacts, knowledge, and a large capital investment. The physical presence of the landlord is often required in order to maintain the property, as well as negotiate any tenant disagreements that arise. Loss of a tenant in a residential property means no income, and the landlord must assume the entire cost of maintenance, taxes, insurance, utilities, and debt service until another tenant is found.
In contrast, an investment in a Real Estate Limited Partnership with professionally managed residential or commercial properties has many advantages over venturing privately into the real estate market directly.
- Stable investment with high returns - Start earning income from the day you invest. Vacancy risk is greatly reduced in multi-tenant properties.
- Tax efficient yields - yield is calculated on an after-tax basis. Unique structure maximizes tax efficiencies.
- Purchase below replacement costs - partner with GenCap and purchase real estate often at less than the price it would cost to build.
- Hassle free investment - all property management, accounting and general day to day administration is taken care of for you. Earn income without any hassles. Tenants sign net rent leases and also pay all occupancy costs (property tax, insurance, utilities, cost of maintenance, and cost of management). Management company negotiates leases, takes care of property maintenance, resolves disputes and collects rents, releasing owners from concern for day-to-day management of the property
- Security in the form of an asset - Investors have ownership and are registered on title.
Increasing popularity of Syndicated Real Estate Limted Partnership Investments
In today's real estate environment, syndication is becoming more prevalent. RELPs allow the average investor to own real estate and also enjoy the benefits of experienced property management without the headaches. A carefully selected management team handles marketing, rent collection, tenant management, and facilities maintenance. All the RELP investor must do is collect their dividends at the mailbox.
Syndication is the process of fractionalizing property ownership into several partial interests in order to divide the required equity into smaller parts. The intent of real estate syndication is to allow the real estate developer to expand the pool of potential investors by offering them a smaller, more affordable equity investment unit, and to provide investors who have limited capital with the opportunity to participate in the ownership of properties which would otherwise be too expensive for them to acquire or develop on their own.
Learn more about Real Estate Syndications and Limited Partnership Invesments
Genesis Capital Partners, Inc. (“GenCap”) is a company with strong ethical standards committed to providing its clients with exceptional service and solid real estate investment returns. GenCap is managed by a group of finance and real estate professionals with over 50 years of combined experience in the financial and real estate markets in Canada. GenCap offers investors the opportunity to invest in real estate opportunities with potential for high and consistent returns. GenCap prides itself in providing investment opportunities to the average investor that would otherwise only be available to the very wealthy. By becoming a part of a syndication, investors have a direct proportional ownership in a particular property whether it be an existing commercial office building, residential income property, a development opportunity or land By striving to meet the highest standards, GenCap’s goal is to build long lasting relationships, achieve solid returns from real estate investments, and build significant wealth for its clients for generations to come. (Find out more)
Genesis Capital Partners, Inc.
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