Rob and I were chatting with a few investors via zoom. All are passive investors investing with all the big names in Texas and Florida. We started talking about returns they are receiving from investing in these “big name” syndications. Not one investor has made over 8% in the last five years.
Earlier this year Rob went in for his annual physical and while his physician slapped on a pair of gloves he asked..
Rob – “What are you getting on your real estate investments?”
Dr. – “at least 15%.”
Rob – “are you really getting 15% or is that what the syndicator/Lead investor/active partner promised but hasn’t delivered?”
Dr. – “well the proforma says 15% but as it turns out I make ~8%.”
We have heard a similar version of this same story for years now. When you really get down to what you make – the proforma says 15% – but when the returns start coming in it is less than 8%.
This is why our funds and syndications will have a preferred return for our class A shareholders. This makes sure that you get paid before we do.
Our real estate fund is open for the last time this year. It offers a 9% preferred annual return and 10% equity. We also have a couple of syndications with preferred returns and equity participation. If interested in either – reply to this email.