Question 1

What is a real estate syndication?

Accepted Answer

Real estate syndications are group investment opportunities. As a limited partner passive investor in a real estate syndication, your money is invested alongside dozens (and sometimes hundreds) of other investors in a single commercial asset (such as an apartment building).

As a passive investor, you won’t have any other active responsibilities in the deal. The Summit Capital team, along with other general partners in the deal, will manage the asset on your behalf.

Question 2

Do I need to be an accredited investor in order to sign up or invest with Summit?

Accepted Answer

No, you don’t need to be an accredited investor to sign up or invest with us. However, certain deals will be open to accredited investors only.

To be considered as an accredited investor, you must meet one of the following two criteria:
1. Have $1 million in net worth (not counting your primary home).
OR
2. Have either an annual income of $200,000 per year or an annual combined income of $300,000 (together with your spouse).

Additionally, you must have maintained this net worth or these annual income amounts for the past two years and intend to continue doing so over the coming year.

Question 3

What are the projected returns on investments like these?

Accepted Answer

The projected returns will vary from deal to deal and are never guaranteed. That being said, we typically look for deals that can provide a 7-8% Cash-On-Cash return along with a 13-15% Internal Rate of Return (IRR).

Question 4

Is there a minimum investment?

Accepted Answer

Yes. The minimum investment will vary by deal, but typically $50,000 is our minimum investment.

Question 5

How long are hold times?

Accepted Answer

Hold times will vary by investment but the average expected hold time is 5-7 years.

Question 6

Will my investment be safe?

Accepted Answer

Capital preservation is our #1 priority. Above all else, we do everything in our power to protect your hard-earned money.

While there are no guarantees with any investment, to protect your capital we ensure that every deal has plenty of reserves and multiple exit strategies in place.

Question 7

What are the tax advantages of investing in real estate syndications?

Accepted Answer

We recommend that you consult with your own CPA to obtain the most accurate tax information for your individual situation.

However, as a real estate syndication investor, you’ll gain the tax benefits of property ownership.  This includes  accelerated depreciation and cost segregation, which can help lower the taxable passive income you receive. Each year, you’ll receive a Schedule K-1 tax form to include with your tax filings. This form reports your income and losses for the investment.  Additionally, If you happen to be a real estate professional, you may be able to apply these paper losses to your ordinary income.  Again, please consult with your CPA for details related to your specific financial situation.

Question 8

Can I use my retirement account, like a 401K or IRA to invest in these deals?

Accepted Answer

Yes, you can use qualified funds such as IRAs, 401ks, Educational Savings Accounts and health savings accounts to make additional investment and increase your returns, either tax deferred or
tax free, depending upon the type of account. In addition, earnings in these accounts are taxed at trust tax rates (UBIT) which may be lower than your personal rate. For accredited investors, saving a few percent using this strategy increases overall ROI. Using a Roth account could deliver additional increased earnings.

Check with your accountant for specific savings amount. If this is an option for you, we can help connect you to trusted advisors who will set you up with a qualified account.

Question 9

How do I get started?

Accepted Answer

Getting started is easy! Sign up with Summit by completing the form below. We’ll reach out to you to set up an initial call so we can get to know you and discover your investing goals. Then, when we find an investment opportunity that matches your objectives, we’ll share the details with you!

Signing up for our investor network is free and there are no commitments to invest.

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