FAQs

A real estate syndication is a partnership between general partners (syndicators like us at BeaconShore Capital) and limited partners (passive investors) to collectively acquire, manage, and sell a real estate asset, such as a multifamily property. This allows investors to pool resources for larger opportunities while sharing in the profits, all without handling day-to-day operations.

Investing in commercial real estate, particularly multifamily properties, offers several advantages, including:

• Steady Passive Income: Consistent cash flow from rental income.

• Wealth Building: Potential for capital appreciation and equity growth over time.

• Diversification: Adds real estate to your portfolio to spread risk beyond stocks or bonds.

• Tax Benefits: Opportunities to reduce your taxes

Investing in syndications with BeaconShore Capital offers key advantages over going it alone:

• Access to Expertise: We partner with seasoned local operators in Columbus, Ohio, who bring hands-on experience in property management and value-add strategies.

• Loan Qualification and Resources: Benefit from our network for financing, legal support, contractors, and more.

• Economies of Scale: Participate in larger multifamily deals (e.g., 100+ units) that provide stability and efficiencies not typically available to individual buyers.

• Hands-Off Approach: Enjoy passive investing without the time commitment of solo ownership.

Partnering with BeaconShore Capital for multifamily syndications in Columbus, Ohio, provides both direct and indirect benefits: Direct Benefits:

• Cash Flow: Receive regular distributions from rental income during the hold period.

• Equity Growth: As we execute value-add improvements (like renovations and operational efficiencies), property value increases, leading to returns upon refinance or sale.

• Tax Benefits: Take advantage of depreciation and other real estate tax strategies, which may create "paper losses" to offset taxes while still generating cash flow. Passive income or capital gains are often taxed at favorable rates (consult a tax professional).

Indirect Benefits:

• Education and Transparency: We guide new investors through the process with clear communication.

• Risk Mitigation: Our conservative underwriting and partnerships with proven operators help protect your investment.

We primarily welcome Accredited Investors to our syndications. In some cases, we may include Sophisticated Investors with whom we've built relationships, in line with SEC regulations. If you're unsure about your status, we can help clarify.

What is an Accredited Investor?

To be an accredited investor, you must meet one of the following criteria:

• Net worth greater than $1 million, not including personal residence

• Annual income greater than $200,000 for the past two years with the expectation of the same income in the current year ($300,000 if including spouse's income)

• There are other criteria, but they are not common

What is a Sophisticated Investor?

A sophisticated investor is defined by the SEC as someone who possesses sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of a prospective investment. This classification is more qualitative than quantitative, focusing on the investor's expertise rather than strict financial thresholds. Key indicators may include:

• Professional background in finance, investing, or related business fields

• Educational qualifications in finance, economics, or business

• Demonstrated history of making informed investment decisions in similar opportunities

Unlike accredited investors, there are no specific income or net worth requirements, but the issuer (such as a syndicator) must reasonably believe the investor meets this standard based on their representations. In private placements like those under SEC Rule 506(b), sophisticated investors can participate even if not accredited, often limited to 35 per offering.

Yes! You can use retirement funds without penalties by setting up a self-directed IRA or Solo 401k. Roll over existing accounts into the self-directed one, then invest as you would with cash. We can recommend providers to streamline this process.

Absolutely. Investments can be made through trusts, LLCs, corporations, or other entities for added flexibility and asset protection.

Our syndications typically target a 3-5 year hold period, focusing on value-add multifamily properties in Columbus, Ohio. This timeframe allows for improvements, stabilization, and optimal exit. However, it could be shorter if the market allows for an early profitable sale, or longer if holding maximizes returns. Note that these investments are illiquid—your capital is committed until refinance or sale, with returns distributed at key milestones.

Our minimum investment is typically $50,000 per deal, though this may vary based on the opportunity. We aim to make syndications accessible while ensuring meaningful participation.

We provide quarterly reports with property updates, financial performance, market insights, and progress against our business plan. You'll also receive monthly or quarterly cash flow distributions. We're always available for questions—transparency is core to our approach at BeaconShore Capital.

Each year, you'll get a Schedule K-1 form detailing your share of income, losses, deductions, and credits from the partnership. This helps with your tax filing. We recommend working with a tax advisor to maximize benefits like depreciation.

Disclaimer: All investments carry risks, including potential loss of principal. Past performance does not guarantee future results. This information is for educational purposes and not financial advice. Consult with financial, legal, and tax professionals before investing.