Real estate syndication is a way for investors to pool their financial and intellectual resources to invest in properties and projects much bigger than they could afford or manage on their own.

A real estate syndication typically involves a sponsor (or syndicator) who identifies, acquires, and manages the investment property. Investors contribute capital to the project in exchange for a share of the income and profits generated by the property.

The sponsor handles the acquisition, management, and eventual sale of the property, while investors provide the capital needed for the investment. Investors are typically passive, relying on the sponsor's expertise to manage the investment.

Like all investments, real estate syndications come with risks, including market risks, property-specific risks, and risks associated with the syndication's structure and management team. However, thorough due diligence can help mitigate these risks.

Returns can vary widely based on the property type, location, market conditions, and syndication structure. Generally, investors can expect a combination of ongoing income distributions and a share of the profits upon the sale of the property.

Investment opportunities may be open to all investors or restricted to accredited investors, depending on the syndication. Accredited investors must meet certain income or net worth criteria set by regulatory authorities. At Iron Castle we only open our opportunities to accredited investors.

An accredited investor is an individual or entity recognized by financial regulations to have the financial sophistication and capacity to deal with securities that may not be registered with financial authorities. In the United States, accredited investors must meet specific criteria defined by the Securities and Exchange Commission (SEC), such as having an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or higher income in the current year, or having a net worth exceeding $1 million, either individually or jointly with their spouse, not including the value of their primary residence. The designation allows accredited investors access to investment opportunities not available to the general public, such as certain real estate syndications, hedge funds, and private placements.

The investment period can vary but typically ranges from 5 to 7 years. It's important for investors to understand the expected timeline and liquidity options before committing their capital.

Minimum investments can range from $25,000 to $100,000 or more, depending on the syndication and the property being invested in.

Investors typically earn money through regular income distributions generated by the property’s cash flow (e.g., rental income) and a share of the proceeds from the sale of the property.

Returns from a syndication can vary but often target a mix of regular income (5% to 8% annually from cash flow) and profit from the property's eventual sale, aiming for total returns of 15% to 20% annually over the investment period. However, each syndication deal is unique, and projected returns depend on multiple factors like property type, market conditions, and management efficiency.

Yes, investing in real estate syndications can provide several tax benefits. These include depreciation deductions, which can offset income generated by the property, and mortgage interest deductions. Investors can also benefit from the preferential tax treatment of rental income and potentially defer capital gains taxes through mechanisms like 1031 exchanges. However, tax implications can vary based on individual circumstances and the specifics of the syndication, so consulting a tax professional is recommended for personalized advice.

Investors should review the property’s financials, the sponsor's track record, the legal structure of the syndication, and any third-party reports on the property (e.g., appraisal, property condition report) to make an informed decision.