Passive investing is a means of investing with very limited contributions beyond your original capital outlay.  Passive investing is a long-term strategy that relies on gradual, steady growths in the real estate market. To invest passively is to keep buying and selling at a minimum. Management costs and risks are kept low; transaction costs remain low, too, as transactions are not frequently made.

For those just getting started in real estate investment, passive investing is a great way to start to understand how it works.

Over 90% of multifamily purchases are made through a syndication.  So what exactly is a syndicated real estate deal? A syndication allows you to take advantage of the experience and financial strength of the sponsor and to aggregate capital among other investors to invest in otherwise unobtainable, high-value apartments with high returns.

1. Diversify your wealth – Diversification is the main reason investing in real estate is important for everyone planning for his or her financial future. However, because even inexpensive properties can range from $50,000-$80,000, many investors consider investing in real estate syndications in order to get better diversification within the real estate asset class.
2. Access to Larger Investment Opportunities – Some of the best real estate investment opportunities in the world are in commercial properties. However, the purchase prices for this asset class can range from $5,000,000- $500,000,000! Because real estate syndications give you the ability to pool your funds with other investors, you are able to get exposure to this asset class, without a seven-figure investment.
3. Passive Investment – Possibly the most beneficial reason to consider investing in real estate syndications is that you have the ability to be a passive investor. In most investments like these, the investor is completely removed from the asset, the management, or the operational perspective of the investment.
4. Get a Tax Deferred Status – When you invest in pooled investments that utilize Limited Partnerships and LLCs, a whole new world of tax-deferred status is open to you. This structure allows you to compound 100% of the fund’s proceeds for years, as long as you do not distribute the gains outside of the fund.
5. Spread Risk – All investments come with risk.  As a limited partner in a syndicated deal, you are able to enjoy high returns without exposing yourself to additional personal liability and credit risk.  We all know that using an entity such as an LLC is advisable when investing in real estate. However, when you invest in a real estate syndication with a sponsor, you add another layer of protection between you and any liability resulting from the fund’s managers or debt obligations.

We are based across the river from Cincinnati in Covington, Kentucky.

The investment portfolio will be concentrated on areas that we know intimately. Those are Greater Cincinnati and Columbus, Ohio and Atlanta, Georgia. In addition, thanks to our extensive network of partners, we are able to offer our investors the opportunities to invest in offerings in other markets.

An accredited investor is someone who meets certain financial requirements. Accredited investors are able to buy securities that are not available to the general public. In the United States, the Security and Exchange Commission states that you can hold that title if:

1. You have an individual or joint net worth exceeding $1,000,000, excluding your primary residence. or
2. You made $200,000 or more in each of the last two years—or $300,000 between yourself and your spouse—and anticipate you’ll make at least as much this year.

If you’re not an accredited investor you can still successful invest in real estate, contact us for more information.

We’re move than just a financial vehicle, we actually have a thorough understanding of real estate investing.  Each partner has critical and relevant experience to our business.

We’re built on a foundation of deep real estate knowledge. As partners, we’re rooted in real estate experience having done over 10 years of historic remodeling and rehabilitation, we’ve since had the privilege of remodeling and preserving over 25 historic homes. Our business grew to preservation and renovation of historic properties into both single family and multi-unit luxury urban apartments. We have our own portfolio of investment properties that we also manage.

Our partners include an experienced Attorney at Law with a real estate portfolio, a Business Executive with P&L experience over $150MM /year and a Principal Realty Broker with a real estate management and development business. You’re in good hands. We know property.

We understand that real estate investing is more than just property and math, it’s about trust and a relationship. We bring more than understanding a deal, we bring actual real estate experience. We’ve bought and renovated multi-family properties. We’ve sold scores of properties through our bespoke realty brokerage. We manage dozens of properties through our real estate management business. Our entire focus is on a bespoke experience founded on a relationship.

We appreciate that you can receive returns at any Real Estate investment company worth any salt.  You invest with Sparen Capital because we value our investors’ personal well being, not just their checks that cash.  Our main objective is for your wealth to grow, but not at the expense of your health. We keep that in check through a transparent approach to timely updates and communication.  You know what is going on with your investment in real time. We treat your time, money, and well being in the same way that we treat our own. Let’s improve together!

1. CONNECTION
   At its most elementary level, a relationship begins with a connection. Investing relationships are no different. You will not be investing in only a building, you are investing in your trust in us. It’s impossible for Sparen Capital to direct correct offerings to you without knowing what your investment goals are. From a legal perspective, our offerings will be governed by SEC Regulation D, specifically Regulations 506(b). Rule 506(b) requires that Sparen Capital have a substantive relationship with each investor, know that investors’s investing goals, and that those goals align with the investment opportunities we offer before we make any investments available to them. Please reach out to us today so that Sparen Capital can get to know you on a personal level and learns your investing goals. Help us to tailor your experience to you.
2. COMMUNICATION
   After we build a relationship with you, we will add you to our email list to receive the latest opportunities that Sparen are appropriate for you. Sparen’s main markets are Atlanta, GA, Columbus, OH and Cincinnati, OH. However, Sparen Capital’s expansive network means that there will continually be opportunities to invest in deals outside of those markets with Sparen Capital’s trusted partners.
   Once an investment has been joined, Sparen Capital will provide monthly, quarterly, and annual reports to keep you abreast of how your investment (and our investment) is performing. Whether we are the operating partner or a general partner bringing equity into a network deal, Sparen Capital will be with you every step of the way from investor conference call to the final exit.
3.  INVESTMENT
   Once you have found an offering that makes financial sense for you, there will documents that Sparen Capital will provide for you to sign to confirm your desire to invest. Additionally, you will receive a Private Placement Memorandum (PPM) that outlines all inherent risk associated with investing in the syndication. You will have the opportunity to see how all collected funds will be utilized while also being able to see how all future profits will be disbursed. As feasible on Sparen Capital investments, all preferred returns will be paid out monthly. Additionally, come tax season, each investor will receive a K-1 to report your share profits and expenses realized for that year.
4. Exit
   At the exit (usually after year 5), and after you have received your profit share, we hope that you are so impressed with the service level of, and opportunity provided by, Sparen Capital that you will invest again. We believe that you will.