Syndication Investment Calculator

 

Intro

We know sometimes it is hard to visualize how investing in Real Estate Syndications is better, and what it can mean for the growth of our wealth. This is why we created the Syndication Investment Calculator!

The Syndication Investment Calculator allows you to quickly understand the power of compound investing. Just add your inputs below (feel free to play with the numbers) to see your potential results over time. If you want detailed data, please use the “Export Detailed Table” in the Summary Table section. For a deep dive into Calculator settings and results please see this article: Introducing the Real Estate Syndication Calculator

We know sometimes it is hard to visualize how investing in Real Estate Syndications is better, and what it can mean for the growth of our wealth. This is why we created the Syndication Investment Calculator!

The Syndication Investment Calculator allows you to quickly understand the power of compound investing. Just add your inputs below (feel free to play with the numbers) to see your potential results over time. If you want detailed data, please use the “Export Detailed Table” in the Summary Table section. For a deep dive into Calculator settings and results please see this article: Introducing the Real Estate Syndication Calculator

Syndication Investment Simulator

Presets

Typical Syndication deal with Distribution Reinvestment (Default)
i
These settings illustrate typical syndication deal parameters.
Passive investor living off of distributions
i
If you are a passive investor living off of your investments, often you will reinvest only the gain at sale. These settings illustrate investments in typical deals, without distribution reinvestment.
Passive investor living off of distributions with no additional contributions
i
If you are a passive investor living off of your investments, often you will reinvest only the gain at sale. These settings illustrate investments in typical deals, without distribution reinvestment, and without additional yearly contributions.
i
Enter the initial amount you plan to invest in syndications.
$
i
Extra yearly investment, in addition to initial investment.
$
i
The minimum amount of distributions and/or annual contributions required before they are reinvested. This is also the minimum investment required in a syndication. Typical minimum investment is $25,000-$50,000.
$
i
Turn it on if you want to reinvest the yearly distributions.
i
The length of time the investment is to be held before sale. 5-7 years is a typical hold period.
Years
i
The multiple of invested funds (distributions, return of capital and gains on sale).
x
i
The number of years for which you want to simulate the investment performance.
Years
i
Projected Cashflow in Year 1.
%
i
Projected Cashflow in Year 2.
%
i
Projected Cashflow in Year 3.
%
i
Projected Cashflow in Year 4.
%
i
Projected Cashflow in Year 5 and beyond.
%
How to read your results?

This chart shows a comprehensive view of your investment portfolio simulation over time. Here's how to interpret the key elements:

Blue Line (Invested): Shows your total amount invested at any given time. When it steps up, it means you've made new investments, and it will align with the Blue Dots.
Blue Dots: Each dot represents a new investment being made. The vertical position shows the size of that individual investment.
Green Line (Cumulative Contributions): Tracks the total amount of money you've put into investments over time. This helps you compare your input versus returns.
Gray Line (S&P500): Shows how the same investments would have performed if invested in the S&P 500 index, providing a benchmark comparison. 10.57% annualized is used for S&P500. If you choose not to reinvest distributions, the S&P500 portfolio is depleted the same amount as the distributions from your syndication portfolio.
Orange Bars (Distributions): These show the regular cash distributions you receive from your investments. The height of each bar indicates the distribution amount.

You can hover over each point to get detailed list of metrics.

Results Summary

Please run the simulation to see results.

Assumptions

  • Distributions start 6 months from the date invested.
  • Proceeds from sale are re-invested the beginning of next month.
  • Proceeds from sale are reinvested even if "Reinvest Distribution" is off.
  • Calculations do not currently take into account tax impact at sale.
  • S&P 500 average yearly return of 10.57% and a dividend rate of 1.66%

Learn

No matter how new or experienced you are in syndications there is always something to learn. Check out our educational articles on Real Estate Syndications.

Get Started

4 reasons not to invest in Real Estate Syndications

We are going to dive into a few reasons why you might not want to invest in a Real Estate Syndication. Everyone has different risk tolerance, control tolerance, and diversification requirements.

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3 Ways You Make Money Through Real Estate Syndications

We go through the three most common ways you get returns on your investment in the order you should experience them as part of your investment journey.

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Accredited vs. Sophisticated investors and their investment options

When you are looking to invest in syndications (Real Estate or others), the “Can I invest” is the first and most important test you must pass. We take a look at the difference between accredited and sophisticated investor definitions, which define what type of syndications you can invest in.

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Syndication Investment Journey from Beginning to End

In this article we dive into the lifecycle of a syndication investment. We will take you through the Syndication Investment Journey from beginning to end.

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Feedback & Feature request

Do you have feedback for the Real Estate Syndication Calculator? Feel free to send it with the form below!

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