SYNDICATION AND SPONSORSHIP

Equity Invest provides real estate syndication services to investment partner groups. A Real Estate Syndication is simply the pooling of investor funds and intellectual resources and investing the funds into real estate. This allows investors to have access to quality real estate opportunities and join highly experienced real estate professionals to manage the process.

 

Syndications come with built-in protections for all parties. They are usually structured as a Limited Liability Company, or similar structure. The Sponsor acts as the Manager and the investors are passive members. The rights of the Manager and the Members, including rights to distributions, voting rights, fees, etc. are detailed in the Limited Liability Company Operating Agreement.

 

Many syndications have much less risk and greater benefits than a typical single real estate transaction. One example would be nonrecourse debt for the partners. Nonrecourse debt is usually not an option for smaller real estate loans or inexperienced investors.  Also, larger depreciation deductions can allow partners to experience positive cash flow that does not generate a taxable income. In many cases, non-cash expenses can be used to offset other taxable income, thereby reducing or suspending partner tax obligations. Also,upon the sale of a real estate asset,  a 1031 Tax Deferred Exchange can be utilized to defer or possibly eliminate capital gain taxes (stepped up basis for heirs) for partners or their estates. Deferring or eliminating taxes are very effective methods to maximize the creation of wealth. Few investment alternatives offer these benefits.

 

Chuck Mullins, or an affiliated entity, acts as the syndication Sponsor.  The sponsor will assemble all investment members, and manage the process to completion. Nonrecourse lenders require an experienced sponsor. Mr. Mullins has been the sponsor of numerous highly successful real estate syndications. He has many years of experience and knows what it takes to get the job done.