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Can You Become Financially Free Passively With Syndications?


Why are you here?

Fly pelican, fly! Why are you interested in real estate investments? If you're like me, you've looked at the real estate buildings around your city and often wondered, who owns them? How are they able to afford them? They must be wealthy. Is there a way for me to participate?


To my wonderment, I have discovered the secret. You're in luck! You see, when I was seeking the answers to those questions, I stumbled into a boardroom. Right place at the right time... The door wasn't fully closed, with dim lighting peeking through the gap between the door and the frame. There was chatter, and the people were finding their seats around the large, oval table. The light was dim in the entryway but for the focused group, the light shining on them was bright.


Suddenly, the people stopped talking to each other and noticed me standing at the entrance. You know me... I quickly told the group, "I thought this was the entrance to Chipotle!" Their faces were in confusion. Then the leader of the group asked me, why are you here?


I want financial freedom. I want to generate income passively. My reasons are plenty:

  • Time. Time with family. Time with friends. Time spent on hobbies and passions. Time to travel.

  • Better health for my family

  • Better education for my children

  • College tuitions

  • Pay bills and debts

  • Savings

  • Retirement

  • Residual income


“The purpose of life is a life with a purpose. So I’d rather die for a cause, than live a life that is worthless.” – Immortal Technique

Can you achieve financial freedom through syndications? Before we go there, let's define syndication. What is a syndication? A real estate syndication is a combined effort between active and passive partners to acquire real estate providing returns on investments, tax benefits and more. Often real estate syndications are found in large multifamily acquisitions, commercial real estate investments and projects too large for any one person to handle.


Come on, get excited! Is it possible to become financially free investing passively in real estate? Yes. However, you need to let time do the heavy lifting. This is definitely a "get rich slow" movement. In the meantime, focus on your career, go enjoy your kids, your grandkids. Go spend some time with your friends, hit another round of golf. I always tell the professional athletes that invest in our deals, focus on that Olympic gold or the NBA Championship or the WBO Boxing Title... let your investment work for you in the background.


So what is a real estate syndication? It is in the combined teamwork that a real estate syndication is able to achieve success. Asset Managers & General Partners work to acquire, improve and manage the property while passive investors or limited partners bring the capital used for the down payment and renovations in exchange for a return on investment and tax benefits. These investments are truly passive for an investor as once the deal closes, monthly or quarterly checks, hold up, monthly or quarterly direct deposits are sent to investors based on the performance of the property with little effort or involvement from the investor.


We do direct deposits.

 

Run The Jewels

Most people work their entire lives and save in their 401k or IRA to just have a modest nest egg after 40 years in the workforce. Imagine just working for just 10-15 years and retiring with over $10,000 per month in income?


Let's say your goal was to make $10k monthly completely passively. Want to see a little math on how to achieve this?


Our typical syndication projects a 2.00x equity multiplier over 5-years. This means the initial investment doubles over 5-years through a combination of cash flow and equity growth.

 

Let's look at Deal #1: To the math. A couple of easy, low-level assumptions to get started:

  • You've saved up $50,000 to be invested

  • You're able to save $10k every year

  • The investment earns 7% annually in cash flow, which you save 100%

Amount Invested

Annual Cash Flow

Additional Savings

Year 1:

$50,000

$3,500

$10,000

Year 2:

$0

$3,500

$10,000

Year 3:

$0

$3,500

$10,000

Year 4:

$0

$3,500

$10,000

Year 5:

$0

$3,500

$10,000

After Year 5, we sell the property. What this means:

  • You get your $50,000 initial investment back

  • From the cash flow and the equity, you've earned $50,000

  • You saved $10k per year, after 5 years you have an additional $50,000

 

Let's look at Deal #2: To the math. A couple of easy, low-level assumptions to get started:

  • You're reinvesting the $100,000 you received from Deal #1 into Deal #2

  • You've saved up $50,000 to also be invested in Deal #2

  • You're able to save $20k every year

  • The investment earns 7% annually in cash flow, which you save 100%

Amount Invested

Annual Cash Flow

Additional Savings

Year 6:

$150,000

$10,500

$20,000

Year 7:

$0

$10,500

$20,000

Year 8:

$0

$10,500

$20,000

Year 9:

$0

$10,500

$20,000

Year 10:

$0

$10,500

$20,000

After Year 10, we sell the property. What this means:

  • You get your $150,000 initial investment back

  • From the cash flow and the equity, you've earned $150,000

  • You saved $20k per year, after 5 years you have an additional $100,000

 

Let's look at Deal #3: To the math. A couple of easy, low-level assumptions to get started:

  • You're reinvesting the $300,000 you received from Deal #2 into Deal #3

  • You've saved up $100,000 to also be invested in Deal #3

  • You're able to save $20k every year

  • The investment earns 7% annually in cash flow, which you save 100%

Amount Invested

Annual Cash Flow

Additional Savings

Year 11:

$400,000

$28,000

$20,000

Year 12:

$0

$28,000

$20,000

Year 13:

$0

$28,000

$20,000

Year 14:

$0

$28,000

$20,000

Year 15:

$0

$28,000

$20,000

After Year 15, we sell the property. What this means:

  • You get your $400,000 initial investment back

  • From the cash flow and the equity, you've earned $400,000

  • You saved $20k per year, after 5 years you have an additional $100,000

 

Let's look at Deal #4: To the math. A couple of easy, low-level assumptions to get started:

  • You're reinvesting the $800,000 you received from Deal #3 into Deal #4

  • You've saved up $100,000 to also be invested in Deal #4

  • You're able to save $20k every year

  • The investment earns 7% annually in cash flow, which you save 100%

Amount Invested

Annual Cash Flow

Additional Savings

Year 16:

$900,000

$63,000

$20,000

Year 17:

$0

$63,000

$20,000

Year 18:

$0

$63,000

$20,000

Year 19:

$0

$63,000

$20,000

Year 20:

$0

$63,000

$20,000

After Year 20, we sell the property. What this means:

  • You get your $900,000 initial investment back

  • From the cash flow and the equity, you've earned $900,000

  • You saved $20k per year, after 5 years you have an additional $100,000

 

Let's look at Deal #5: To the math. A couple of easy, low-level assumptions to get started:

  • You're reinvesting the $1,800,000 you received from Deal #3 into Deal #4

  • You've saved up $100,000 to also be invested in Deal #4

  • You're able to save $20k every year

  • The investment earns 7% annually in cash flow, which you save 100%

Amount Invested

Annual Cash Flow

Additional Savings

Year 21:

$1,900,000

$133,000

$20,000

Year 22:

$0

$133,000

$20,000

Year 23:

$0

$133,000

$20,000

Year 24:

$0

$133,000

$20,000

Year 25:

$0

$133,000

$20,000

After Year 20, we sell the property. What this means:

  • You get your $1,900,000 initial investment back

  • From the cash flow and the equity, you've earned $1,900,000

  • You saved $20k per year, after 5 years you have an additional $100,000

  • You're making over $11k per month, 100% passively, 100% tax deferred

 

In this super conservative investment approach, let's analyze what you did.

  • $50k initial investment year 1

  • $10k savings annually first 5 years, which you invested into Deal #2 (Year 6)

  • $20k savings annually second 5 years, which you invested into Deal #3 (Year 11)

  • $20k savings annually third 5 years, which you invested into Deal #4 (Year 16)

  • $20k savings annually fourth 5 years, which you invested into Deal #5 (Year 21)

Stress-free real estate investing. In this plan you take the road to $10k per month passively.


This is crazy conservative, only placing one investment every five years. What if you doubled your initial investment? What you saved a little bit more? What if you did an investment every other year? Or an investment every year?


If you doubled this plan, this is what that would look like:

Amount Invested

Annual Cash Flow

Monthly Cash Flow

Years 1-5:

$100,000

$7,000

$583

Years 6-10:

$300,000

$21,000

$1,750

Years 11-15:

$800,000

$56,000

$4,667

Years 15-20:

$1,800,000

$126,000

$10,500

Years 21-25:

$3,800,000

$266,000

$22,167

 

Mad realistic!! You can do this!


This simplified example shows the power of passive real estate investing and the amazing compounding effect that investing can have. Of course, these are simplified examples. But we also know that some years these investments will return much better than 7%.


Most people work their entire lives and save in their 401k or IRA to just have a modest nest egg after 40 years in the workforce. Imagine just working for just 10-15 years and retiring with over $10,000 per month in income?


You already know, you light I’m heavy roll, heavy dough. Mic macheted your flow, your paper falls slow like confetti, mines a steady grow.” – Jay Z
 

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We are Ten15 Capital, and we are innovating the world of real estate investing via apartment complexes. We create lucrative opportunities via syndication or joint venture projects.


To learn more, please go to our website: www.Ten15.co

Ten15 Capital

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