Buy Real Estate In Puerto Rico With Us
and Own A Piece Of Paradise
Why Buy Vacation Rental Real Estate?
- Own a tangible asset
- Build long-term wealth
- Tax benefits
- Cash flow from day one
- Passive income
- Hedge on inflation
- Diversify your investment portfolio
- Lifestyle Asset
- Uncorrelated to the stock market
Investment Opportunities Abound in Puerto Rico
The Kind That Will Put a Huge Smile on Your Face
Our Program at Paradise Rental Fund
One thing we have discovered over the years is that there are few things that almost anyone, even strangers, will talk to you about. The first is the weather. The second is current events and the third is real estate. When we do talk shop, some are not familiar with the investment opportunities here in Puerto Rico real estate. Hence we often get asked about how to become a real estate investor and buy property in Puerto Rico? Sometimes we are surprised to hear that many don’t know they could invest in a “Little Piece of Paradise” by becoming investors along with several other as well.
So here is a little insight into our company and about the benefits of becoming a potential investor.
Paradise Rental Fund is a real estate business that purchases Vacation Rental properties and does so by forming syndications with private individuals through our Tribvest Investor Portal. We pursue the purchase of mid priced tourist vacation rental properties all around the San Juan area, in the Northeast region of Puerto Rico. This area of Puerto Rico is highly popular, and one of the most sought after vacation rental locations year round for people visiting Puerto Rico.
These types of properties due to their nature as an in demand vacation destination produce much more positive cash flow than a traditional monthly rental.
Potential investors can log into our investment portal and then are pre-screened and only then offered partnerships via a Private Placement Memorandum. This document is a detailed disclosure document that identifies who we are, what we do, and what are the potential risks for potential investors.
We take investing other people’s money very seriously, so our Company is very diligent in ensuring it complies with Securities Exchange Commission requirements. Our investment opportunities are not available to the general public; only to those who meet certain criteria after receiving certain required documents and screening through our Investor Portal and those who have an accredited investor status.
Build wealth through partnerships
Paradise Rental Fund investment opportunities don’t just offer investors a boring fixed return. We offer our investors equity partnerships. An equity investor provides capital in exchange for an ownership interest in a property. We offer an equity split with our partners. They get to share in the passive income without having to deal with the day-to-day requirements of managing the property. In addition, they also share in the appreciation and profits upon the sale of the property.
Does this get you more interested in the real estate investment opportunities here in Puerto Rico?
The returns are based on the actual performance of the property and not on speculative markets. Returns are not fixed. Our investors get to participate in all the benefits of ownership, which could result in a much higher return on investment.
It is important to us that investors feel comfortable with their investment choices. Typically, in some cases, Paradise Rental Fund structures its project funding by obtaining a portion from seller financing (when offered) and the remaining portion from investors to purchase the asset or simply pays all cash in most instances.
Successful investors need a solid power team
Our company does everything for you.
Here at Paradise Rental Fund, we do the following….
- Perform the research to determine the markets,
- Locate the properties,
- Perform detailed due diligence,
- Negotiate with the owners and real estate brokers,
- Work with attorneys and accountants to set up our business entities and partnership agreements and
- Work closely with everyone in our property management company Paradise Rental Vacations to ensure we are getting the results we want.
We can even work with you through a national self-directed IRA administrator if you wish to use your IRA or 401K to invest in our projects. We will share what we can to help you learn more about Puerto Rico real estate as an investment opportunity.
Paradise Rental Fund prides itself on being open and transparent with our partners. We share due diligence material and make available any financial statements during an investment period. Our acquisition fee is competitive with that in the marketplace.
We ensure our equity partners receive all the proper paperwork to participate in our deals through our Tribevest Investor Portal.
Potential investors are provided the following through the Portal:
- A Private Placement Memorandum,
- Operating & Subscription agreements,
- Hazard and title insurance upon successful closing.
Your investment is backed by real estate. Partners also receive quarterly payments and updates on the property during the ownership period through the Portal. Then, when the property is later sold or refinanced as per the exit strategy, our lender partners are paid back their initial capital. They are also provided the opportunity to participate in future deals. Then the cycle starts all over again.
Hopefully, this shows you how real estate here in this area of Puerto Rico can provide great investment opportunities.
What is real estate syndication you may ask?
REAL ESTATE SYNDICATION is like the popular term “crowdfunding for real estate” currently being used, but it was around before the term crowdfunding for real estate ever existed. In its most simple form, both syndication and crowdfunding involve pooling capital with other individuals for a common purpose or a common goal. In real estate, that common purpose is the purchase of real property, a physical building that you can see and touch.
Real estate syndication offers the opportunity for individuals to channel private savings into real estate investments for which other financing is not available. It is widely used in Puerto Rico as most purchases are transacted with cash due to the difficulty of buyers being able to get financing on second homes or vacation properties. It has also been a popular method of financing the purchase and sale of properties in the higher price ranges and has been widely used by Commercial property investors for years.
The term “syndication” has no precise legal significance. It is a descriptive term for an organization or combination of investors pooling capital for investment in real estate.
The responsibility, obligation and relationship of the syndicator to the investment group and the investors to each other are determined principally by the form of organization.
In general, a typical real estate syndication combines the money of individual investors with the management of a sponsor and has a three-phase cycle: origination (planning, acquiring property, satisfying registration and disclosure rules, and marketing); operation (sponsor usually manages both the syndicate and the real property); and eventual liquidation or completion (resale of the property).
Benefits
Often times real estate brokers or investors have the opportunity to make an investment with respect to a piece of property that they find that appears to offer extremely favorable opportunities for profit to the purchaser.
All too often the investment outlay on such a purchase is more than any single individual can manage. The real estate investor who understands the methods of successful syndication can turn what would otherwise have been a frustrating and unrewarding situation because of the inability to purchase a particular property, into a possible profitable transaction for the investors.
By pooling limited financial resources with others who are similarly situated, a small-scale investor may participate in the ownership and operation of a piece of property that is too much to handle singly or even in a joint venture with one or two others.
Syndication also offers professional management, which might not otherwise be economically feasible for the small investor. Professional management, the basic commodity that the syndicator has to offer, is crucial to successful syndication.
Why do people engage in real estate syndication?
The biggest reason individual investors participate in real estate syndication or crowdfunding for real estate is access to deal flow. Not every investor has the time to search for and investigate hundreds of properties to find a gem to acquire. There are thousands of real estate companies all over who do this for a living. By getting involved through real estate syndication, investors have access to this deal flow and the ability to invest in real estate without the hassles of property management themselves.
Who is involved with a real estate syndication?
The first ingredient for a real estate syndication is a “syndicator” or “sponsor”. This individual or company is in charge of finding, acquiring, and managing the real estate. They have a history of real estate experience and the ability to investigate and do the due diligence on the real estate. The other party is the investors. These are the individuals who invest with the syndicator and own a percentage of the real estate as a result. They get all the benefits of property ownership, but they are not involved with acquiring the property, arranging financing (if there is a loan on the property), and doing day-to-day management. In some transactions, there can also be a third party, the Joint Venture (“JV”)/Equity partner. This JV partner (in most cases they are a large investment or accounting firm) which typically has access to a large number of investors and serves as a conduit between the syndicator and the investors. In addition, to help with financing, they may help the syndicator with reporting, communications, and even tax documentation.
Want to learn more about Our Program?
If you want to know more about how to get involved in some of the potential real estate investment opportunities as a private equity investor, then sign up below for our very informative “Intro to Investing in Paradise” It will answer many of the questions you have about the process, and will get you excited about getting started with us!
You can see why many accredited investors like real estate syndication. If you want to know more about how to invest in Paradise with a real estate syndication company or how getting involved in real estate in Puerto Rico can benefit you, Contact us!
We will provide you with a complimentary and no-obligation consultation with our Company Founder and General Partner Mr. Brown.
We are not salespeople. We are real estate investors. We will never pressure you to partner with us. Great opportunities speak for themselves. We provide as much information as we can to help you make a decision and the rest is up to you. We think it’s a refreshing way to do business.
If investing in real estate as a passive investor interests you then you will want to sign up below for our “Intro to Investing in Paradise” We’ll identify the key documents that private individuals should have when they invest in a syndication. Sign up today for some great information. If you are thinking about investing, this is a very helpful and informative informational packet.
Frequently Asked Questions
How do I Invest?
First, you must be an accredited investor or a sophisticated investor. Our opportunities are offered only to those that are prequalified. So, you NEED to get on our mailing list NOW and have an investor qualification call with us!
We are constantly looking for new opportunities and when we find them, we must act quickly. Our goal is to help you learn and get ready to invest so that you can act fast when the opportunity does present itself.
My Financial Advisor told me not to do this, Why?
A few of the reasons may be:
- Real Estate Syndication is not a regulated investment vehicle (which is why not everyone can participate). All investments carry some form of risk. Smart investors understand the concept of risk adjusted returns and that is why they flock to Syndicated Real Estate investments.
- We generally offer better returns than your financial advisor can offer, and we certainly offer better tax savings.
If your stomach can handle it, read the terms and conditions of any mutual fund. We were shocked the first time we did. The only one sure to make money is the mutual fund itself and your Financial Advisor. You carry all the risks with no guarantee of positive returns and even possible significant loss of principal.
As previously mentioned, we invest in all the opportunities we present to you. We walk the talk.
How will this affect my taxes?
The IRS allows investors in real estate investments to deduct a portion of the purchase price and capital improvements made to the property through depreciation expense. You should consult with your tax advisor, but typically this depreciation adjustment allows investors to reduce taxable investment income. This deduction often exceeds the amount of taxable income paid to the investor during the year.
Further, when the investment property is ultimately sold or refinanced, investors are generally taxed at a lower capital gains tax rate. Investors may also be able to take advantage of other tax benefits to further defer taxes. Everyone’s situation is different so please consult a professional tax advisor!
Do I have to manage the property?
No, our partnerships are created by General Partners who put the project together, take responsibility for the management and upkeep of the property, as well as assume most of the risk. You (the Limited Partner) then invest in the project. Limited partners are not active in the management of the asset but receive the investment benefits of real, income-producing property.
NEED MORE INFORMATION ABOUT OUR SYNDICATED REAL ESTATE PARTNERSHIPS?
We would love to discuss this with you further.
Schedule your call today to learn more, and if you are interested, begin receiving an exclusive collection of investment opportunities that will allow you to passively build wealth for your families and retire on your own terms.
Please schedule a call using this link below:
Click to schedule a call
Our Mission Statement
We have a very simple mission. It’s to bring individuals together who wish to earn a great return on their money and to acquire cash-flowing properties here in Puerto Rico from which we can all profit and build wealth. We strive to make the investing experience simple, enjoyable, and passive for our private money investors. It’s so important to us!
Our Core Values
- Be genuine and honest
- Be transparent
- Be hardworking
- Be helpful to others with no expectation of receiving anything in return
- Be creative and open minded
- Be passionate and determined
- Live, breathe and exude positivism
- Be respectful and attentive
- Be yourself!!