Why Invest in Real Estate?
01
inflation hedge
With the extraordinary COVID-19 stimulus funding pumped into the economy, inflation is a legitimate devaluation threat to standard stock/bond portfolios. Investing in tangible assets that are not subject to short-term supply fluctuations, such as real estate, can be an anchor for any investor. By financing with historically low fixed interest rates to purchase property, HCG is poised to benefit from US inflationary monetary policy. (see more)
02
recession resilient
People will always need a place to live. HCG invests in non-luxury, multi-family housing. Vacancy for this property class is low during normal economic periods. During recessions, struggling households tend to move from homeownership or luxury units to more affordable units ensuring consistent demand for the latter. (see more)
03
Tax Benefits
Syndicated real estate investments offer similar tax advantages to direct ownership which allow for an individual to legally reduce their tax liability by offsetting future gains or current income with unrealized losses, depreciation, tax-free cash-out refinances, and 1031 Exchanges. As a comparison, public REIT investors do not benefit from depreciation deductions.
04
passive income
Passive investors can vet, invest, and forget! HCG targets properties that provide positive cash flow from day one, allowing quarterly checks to be distributed to limited partners shortly after closing. No need to worry about the time-consuming hassles of investing in real estate and self-managing properties.
05
equity appreciation
Investor equity will appreciate over time. By acquiring underperforming properties in strong markets and adding value through cost-conscious renovations, significant appreciation is expected.
Why Invest in a Syndication?
Most Americans are unable to invest in real estate given its ever increasing cost and time consuming nature. Access is further constricted when looking beyond single family homes into commercial real estate, as the majority of this asset class is valued in the seven to eight figure range. High net-worth individuals, family offices, and institutional investors have the means to invest in these properties and have strategically done so to receive high returns and tax benefits.
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Through the use of a real estate syndication, the barrier to entry into the commercial real estate world is lowered. To acquire a property, partners leverage each other to pool funds and create a singular syndicated entity with the buying power of an institutional investor. The entity is created during the acquisition of a property and is dissolved after the sale of said property. All syndication investors are partners who are part owners of the entity and they reap the profits provided by the property.
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