The Granger Company offers a number of different ways to invest in the real estate market. These different investment vehicles are outline below and include:
- Real Estate Partnerships
- Trust deed investing
- Real estate income property
These different types of investment products create unique opportunities for individuals to invest as little as $50,000 in valuable commercial and industrial real estate. Clients receive a dual benefit by investing in these products — they add real estate holdings to their portfolios, but they do not have the responsibility of maintaining or managing the property in which they are investing.
What is a Real Estate Partnership?
The Granger Company forms Real Estate Partnerships for the purpose of acquiring and operating real estate properties. A property in a Partnership is purchased with approximately 40% equity and 60% debt, and Partnership investors are investing in the equity portion of this transaction.
A Partnership typically holds a single investment comprised of one to several buildings . The rental income collected from tenants in these buildings, minus Partnership operating costs (i.e., carrying costs, leasing commissions, debt service, and maintenance reserves), form the monthly distributions to Partnership investors.
The Partnership property is usually leased to a stabilized rate of 90%-95% occupancy within the first nine months of ownership. All tenant leases are triple-net, meaning the tenants pay their own operating costs, taxes, and insurance expenses.
To date, The Granger Company has taken a lead investor position (20%-40% ownership) in each Partnership it has created, and has returned an average annual return of over 20% to investors.
Partnership investors are typically high-net-worth individuals who are interested in investing in real estate without the responsibility of operating the property themselves. They should have an investment horizon of 5-10 years as these investments are not typically liquidated before the Partnership is dissolved and the underlying property is sold.
As with any investment, there are a variety of risks of which investors need to be aware. Among other things, these could include economic risk if the property is vacant for a portion of its term; or environmental risk if hazardous material is found on the property; or interest rate risk if rates rise and affect the return on the property. In addition to consulting his or her own counsel, accountant and financial advisors, a prospective investor should review a Partnership prospectus carefully and rely on his or her own evaluation of the merits and risks of a Partnership investment.
Contact Us About Investment Opportunities
To learn more about Real Estate or Trust Deed Partnership Investment opportunities, contact email@example.com or call us at (310) 323-1550. Or complete the request form.