What happens after I invest in a real estate syndication?

[Justin Goodin]

So, you’re sure you want to invest in a real estate syndication, you do your research, and you lock in a deal. Now what?

After you’ve sent in your funds for a real estate syndication deal, your active participation is done. Now you can sit back and wait for the cash flow to start rolling in.

Depending on the particular deal, you may receive either monthly or quarterly cash flow distributions, and they may start immediately, or not for a few months.

Regardless, you should start receiving monthly updates as soon as the deal closes. These monthly updates will include information on the latest occupancy and progress on the renovations.

Every quarter, you will receive a detailed financial report on the property, and every spring during tax season, you will receive a Schedule K-1 for your taxes, which will report your share of the income and losses for the property.

As your projected hold date approaches, the monthly information you receive may include information about a sale. Once the asset sells, you can expect your original investment capital to be returned, plus any percentage of profit due to you.

[Joe Archbold]

Justin,

Thats great. Tax time and a K1 to offset passive gains further reducing your taxable passive income, that's the benefit of real estate even as an LP. So if its an 8% annual return and the operators are depreciating the assets and use cost segregation, I am curious if anyone has estimates for passive losses on a typical project? 

Thanks

Joe