By Darell Schmidt, Allante Properties, LLC, Denver, Colorado
November 21, 2016
Small investors have once again discovered the ability to join a larger group of investors with a smaller investment, thereby achieving the economies of scale a larger investment pool can generate. Investors are now pooling their resources with Allante Properties to act on opportunities in the current market. Allante is creating these pools and managing them on behalf of the investor group and sharing in the profits with the investors.
Combining the resources of several investors with Allante Properties creates numerous benefits for commercial real estate investments. Investment groups might be able to acquire larger properties than individuals acting alone and obtain financing more easily without direct recourse to the lender. The syndicated group led by Allante can offset an investor’s lack of ability to borrow larger sums of money. In addition, investors with either small or large financial resources, and who might lack deal-making expertise, can rely on the experience of Allante to facilitate transactions, allowing the investors to be passive without the duty and obligation of managing the day-to-day activities of the investment.
Although many investors are capable of buying their own properties, hour-for-hour and dollar-for-dollar, it can be more profitable to use the services of Allante Properties, a highly regarded real estate developer with a proven track record. It takes an experienced developer with unique skills to properly manage an investor group through a long-term commitment to a real estate project. Allante’s value to investors rests with its reputation, experience, and management skills, as well as the ability to locate, negotiate, and acquire suitable investment properties with an upside for the groups it manages. Investors who are busy need experts such as those at Allante to help locate and negotiate acquisitions and manage the intricacies of such investments, allowing investors to focus on their regular business activities.
Typical group investments often include total equity investments of up to $8,000,000 in equity that can be leveraged into $25,000,000 worth of property. The average dollar investment by the typical investor ranges between $100,000 to $500,000, but can include smaller or larger amounts on smaller or larger transactions. High net worth investors might even want to become sole investors in particular transactions and utilize tax deferred exchange techniques to build value without long-term capital gains taxes.
The number of investors in a group can vary from only a few to an unlimited number, depending on the type of investors and the exemption used in a Regulation D or a Regulation A offering. The net worth of an investor and the associated knowledge of investing typically is a requirement to invest with Allante. In other words, Allante needs to determine that each investor is suitable for a particular investment, in order to comply with SEC regulations and according to the common sense provided by Allante.
In summary, Group Investments is an ideal way to pool money for the benefit of investors using the guidance and expertise of Allante Properties.
Developer, Darell Schmidt is a second generation Denver native and is presently managing partner of Allante Properties, a market leader in pioneering real estate investment opportunities for private investors in Denver apartment developments. He focuses on close in locations close to the urban core that display high walkability scores which translate to higher returns for his investors.
Be sure to call Darell Schmidt at 303-359-1210 or email him at Darell@AllanteProperties.com.
Please visit Darell Schmidt on his websites and blogs;
BLOGS