Frequently Asked Questions
What Is real estate syndication?
Real estate syndication brings the power of group buying to the world of real estate investing. A group of individual investors can invest in bigger, more valuable properties than any one person could afford alone. Syndication is an effective way for a group of investors to pool their financial resources and make smart investments. Multifamily commercial properties like apartment complexes are some of the most profitable projects for real estate syndicates.
What is passive real estate investing?
Simply put, passive investing is allowing professional asset management to put your money to work for you. This allows investors to not worry about the day-to-day management of any property. Scout Rock Capital will provide you monthly updates on the health of the property. This report will include where we are with vacancy, lease-ups, bad debt, rehabs, etc.
Do you only take accredited investors?
Each syndication can be structured differently, but in general, we provide opportunities for non-accredited sophisticated investors as well as accredited investors. Strict care is taken to ensure that investment opportunities are only offered to those who understand the risks associated with private equity investing.
Am I an accredited investor?
Being an "accredited investor" is a Securities and Exchange Commission (SEC) term. Without going into too much detail, an accredited investor includes anyone who:
Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
Don't fall into this category? Not to worry, there might still be opportunities to invest set up a call and let's talk about it.
What is the minimum investment with Scout Rock Capital?
Every deal is different, but most offerings will come with a minimum investment of $75,000 to $100,000. It all depends on the requirements of each project.
How long is a typical investment period?
Most deals have a five-to-six year investment window where the property will either be sold or refinanced to get money out. Any investment made should plan to be illiquid for the duration.
How does Scout Rock Capital get paid?
Being the orchestrator of a commercial real estate syndication is a serious undertaking with legal and financial risks. As such, our goal is to be paid just like you.
While the structure of each offering will differ, typically we will be paid in the same type of ways. Real estate syndicators are paid through part ownership in the deal, they receive cash-flow, receive an acquisition fee, receive a small fee for continuing to operate and manage the property and variations of the above.
At Scout Rock Capital, you will always see our financial goals aligned. Meaning, when you make money, we make money. Our incentive is to make you financially successful.