Syndication Benefits
Monetary
- Quarterly or annual payout. To be determined by specific property acquired, explicitly defined in LLC operating agreement.
- Lowering your taxes. Actual costs incurred for financing, managing, and operating the property are tax deductible. This includes syndicate origination and property management fees.
- Depreciation expense. Used on your tax return to reduce taxable income. Tax deductions will be shared by partners based on percentage of ownership. TDI Properties, Inc. will file a tax return with a Schedule K-1 appendix and distribute to each partner in the syndicate.
- Increase in value. There is no guarantee of an increase in property value during the holding period, but we anticipate as such. Several key factors including “buyer's market” conditions, low interest rates, and TDI Properties, Inc.'s unique ability to identify and restore under-valued properties; all predict a likely increase in property value.
Non-Monetary
- No financial risk during origination phase. No money invested until potential investment property has the consent of all partners.
- No direct involvement in managing. Partners can be assured their investment is being managed by an experienced team with a proven track record. TDI Properties, Inc. will submit quarterly financial reports to each partner in the syndicate.
- Inflation hedge. Real estate tends to rise along with prices in the overall economy, thus providing an effective hedge against inflation.
- Diversification of investments. Real estate has a low correlation with more traditional assets which can improve portfolio diversification.
- Secured investment. Compared with other investments, real estate ownership offers a tangible asset secured by real property.