Real Estate Investment opportunities in the decade ahead of us may be the best we see for the next few decades.
Many banks and other real estate investors in the United States are currently facing a credit crisis that will require them to liquidate substantial real estate holdings over the next three years in a cleansing of their portfolios. What began as liquidity and confidence crisis in 2007, manifesting in the failure of some of the large insurance companies and investment banks in 2008, will continue as a portfolio cleansing that we believe will last at least until 2015 when most of the outstanding commercial real estate debt matures.
SIG was formed with the expressed purpose to seek to capitalize on the fundamental dislocation in the real estate capital markets and to match private investor’s capital with experienced niche real estate operating companies so that all involved will benefit from these pooled resources.
SIG provides our investors with the benefits of real estate ownership, including tax preferred cash flow, long-term capital appreciation and portfolio diversification without the burden of direct property management responsibility.
When you invest within private real estate syndication, you are pooling your capital with other qualified accredited investor partners for the purpose of investing in larger and more lucrative real estate projects. We call this “Group Investment”, also known as syndication. This affords the individual investor an opportunity to participate with an organized group of like-minded and sophisticated Investor Partners in the ownership of a revenue generating property. This provides the potential to achieve higher profits through economies of scale and diversification with lower volatility than the average equity investment.
Unlike a REIT, our private real estate fund offers portfolio diversification because you own an actual piece of each real estate asset, and your return is not correlated with the stock and bonds market nor the overall financial health of any one stock traded company.
The JV Equity Partner Program offers and SIG fund investors a broad range of benefits, including:
- Power of Pooled Funds: Provides access for individuals and family offices to participate in opportunities typically only available for larger institutional investors
- Portfolio Diversification: the opportunity to invest with a variety of experienced operators, assets, and geographies for a truly diversified portfolio. Private real estate investments are not correlated with stocks and bond investments adding an extra layer of diversification in ones portfolio of investments.
- Improved access to deal flow: Our operational partners have ongoing deal access from banks, brokers, and owners that have been developed over several decades
- Mitigation of risks: Extensive Due Diligence & Research By Expert Operators
- Expertise & Oversight: Acquisition and operational expertise from the country’s top real estate operators that co-invest and have aligned incentives to achieve attractive returns
- Favorable risk-adjusted returns: The potential to earn increased compensation over the real estate return, and a potential hedge against inflation
- Opportunity to create proprietary relationships: The opportunity to invest in one or more future investments of pipeline opportunities
- More efficient allocation of capital: The opportunity to leverage multiple platforms, strategies, and operational expertise from the best-of-breed operators
- Access & Positive Leverage: Access to co-investment of private capital funds and institutional sources only accessible by seasoned operators
- Interest Bearing Account: U.S. treasury backed bond fund capital account available
Controls & Safe Guards
Integrity and transparency; Our real estate investments and operators are governed by stringent investment safeguards, including frequently audited financial statements to ensure accuracy in reporting.
Risk Mitigation & Defined Expectations; We implement a private placement memorandum that sets out the investment’s distribution policy, prohibits investment in certain assets or activities, defines borrowing limitations and limits recourse of its lenders and major service providers to the assets of the group’s investment—thereby protecting our investors from liability.
Because many investors have limited resources to source, underwrite, structure, monitor new relationships or pursue various strategies, we help investors mitigate risk and enhance their return potential over time.