In general, investors buy shares in a REIT and, thus, own that percentage of the REIT company rather than the property itself. As large corporations, REITs often trade on public exchanges.

A syndication is a company built by the sponsor to buy a specific property. On the other hand, a REIT is a company that invests in a variety of real estate projects. REITs almost always have multiple projects, and as an investor, you may not have visibility into exactly where your investment is going. With REITs, you have much less control over which properties to own and dispose.

Tax benefits are not equal too, real estate syndication has numerous tax benefits over REITs. REIT income is considered ordinary dividend income, leading to a larger tax bill. However, real estate syndication’s income and depreciation pass through to the investor’s tax return. In other words, syndication income can not only give you cash, but they can lower your tax bill by offsetting other income (like W-2 income from a job).

TSG does not provide tax advice. Please review your individual tax circumstances with your accountant.

The SEC has set up a benchmark for investors having to do with their income or their net worth. The idea is that accredited investors are those individuals classified by the SEC as qualified to invest in complex or sophisticated types of securities. The benchmarks for being an accredited investor are noted below. Investors must meet one of the following to qualify:

A person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or a higher income in the current year. An individual must have earned income above the thresholds either alone or with a spouse over the last two years. The income test cannot be satisfied by showing one year of an individual's income and the next two years of joint income with a spouse.

A person is also considered an accredited investor if they have a net worth exceeding $1 million, either individually or jointly with their spouse. This amount cannot include a primary residence. The SEC also considers a person to be an accredited investor if they are a general partner, executive officer, or director for the company that is issuing the unregistered securities.

An entity is considered an accredited investor if it is a private business development company or an organization with assets exceeding $5 million.

Each property is different but we normally project a 3-5 year hold.

It depends on the investment vehicle.

For an equity syndication deal, you have a percentage ownership of the company that owns the property, like owning shares of a stock. You will receive all the documents confirming that ownership when you sign up. Once the property is stabilized and meeting our financial projections you will start receiving regular distribution checks. Sometimes we refinance the properties and return some or all of investor capital at that time. In other circumstances, we return investors capital when the property sells.

It is very deal specific. To hear more about what we have in the pipeline and transactions we have closed, schedule a consultation with us by emailing: info@TsgCapitalVentures.com.