Syndication Investment Calculator

 

Intro

We know sometimes it is hard to visualize how investing in Real Estate Syndications is better, and what it can mean for the growth of our wealth. This is why we created the Syndication Investment Calculator!

The Syndication Investment Calculator allows you to quickly understand the power of compound investing. Just add your inputs below (feel free to play with the numbers) to see your potential results over time. If you want detailed data, please use the “Export Detailed Table” in the Summary Table section. For a deep dive into Calculator settings and results please see this article: Introducing the Real Estate Syndication Calculator

We know sometimes it is hard to visualize how investing in Real Estate Syndications is better, and what it can mean for the growth of our wealth. This is why we created the Syndication Investment Calculator!

The Syndication Investment Calculator allows you to quickly understand the power of compound investing. Just add your inputs below (feel free to play with the numbers) to see your potential results over time. If you want detailed data, please use the “Export Detailed Table” in the Summary Table section. For a deep dive into Calculator settings and results please see this article: Introducing the Real Estate Syndication Calculator

Presets

Typical Syndication deal with Distribution Reinvestment (Default)
i
These settings illustrate typical syndication deal parameters.
Passive investor living off of distributions
i
If you are a passive investor living off of your investments, often you will reinvest only the gain at sale. These settings illustrate investments in typical deals, without distribution reinvestment.
Passive investor living off of distributions with no additional contributions
i
If you are a passive investor living off of your investments, often you will reinvest only the gain at sale. These settings illustrate investments in typical deals, without distribution reinvestment, and without additional yearly contributions.
Typical Development Syndication deals
i
When investing in development deals, it is common to not receive distributions during the development phase. In that case, all of the growth is realized upon sale. Development deals usually have a shorter lifecycle. These settings illustrate investment in typical development deals.
i
Enter the initial amount you plan to invest in syndications.
$
i
Extra yearly investment, in addition to initial investment.
$
i
The minimum amount of distributions and/or anual contributions required before they are reinvested. This is also the minimum investment required in a syndication. Typical minimum invesment is $25,000-$50,000.
$
i
Turn it on if you want to reinvest the yearly distributions.
i
Percentage of annual payments made to investors.7-8% is typical
%
i
The length of time the investment is to be held before sale. 5-7 years is a typical hold period.
Years
i
The multiple of invested funds (distributions, return of capital and gains on sale).
x
i
The number of years for which you want to simulate the investment performance.
Years

Results Summary

Summary Table

Assumptions

  • Distributions start the quarter invested.
  • Proceeds from sale are at the end of a quarter and are re-invested the begining of next quarter.
  • Proceeds from sale are reinvested even if "Reinvest Distribution" is off.
  • Last investment year statement based on begining of quarter, and not accounting for any proceeds from sale in that quarter.
  • Calculations do not currently take into account tax impact at sale.
  • S&P 500 average yearly return of 11.13% and a divident rate of 1.66%

Learn

No matter how new or experienced you are in syndications there is always something to learn. Check out our educational articles on Real Estate Syndications.

What is a Real Estate Syndication and 4 reasons to invest in one

As a Real Estate Investor, you might already be familiar with the standard way of investing – owning real estate directly. There is another way, however – Real Estate Syndications. Learn the 4 reasons to invest one

4 reasons not to invest in Real Estate Syndications

We are going to dive into a few reasons why you might not want to invest in a Real Estate Syndication. Everyone has different risk tolerance, control tolerance, and diversification requirements.

3 Ways You Make Money Through Real Estate Syndications

We go through the three most common ways you get returns on your investment in the order you should experience them as part of your investment journey.

Accredited vs. Sophisticated investors and their investment options

When you are looking to invest in syndications (Real Estate or others), the “Can I invest” is the first and most important test you must pass. We take a look at the difference between accredited and sophisticated investor definitions, which define what type of syndications you can invest in.

Feedback & Feature request

Do you have feedback for the Real Estate Syndication Calculator? Feel free to send it with the form below!

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