Pooled Investment Fund

Real Estate Syndication

Structured Sale, Retirement Exit Strategies with Real Estate Investments

What is Pooled Investment Fund?

A Pooled Fund is combining the capital of multiple investors which, when added together, create greater purchasing power (and thus more diverse and higher returning investment opportunities). By pooling resources with other investors we are all able to achieve something greater than what we could achieve on our own.

I’m sure we’ve all heard the expression, “The rich keeping getting richer”.  This is often because high net worth individuals and institutional investors pool their resources, and are able to invest in America’s best performing, most stable real estate assets.  In fact, the wealthiest already own most of America’s “High Ground”, of large and expensive assets.

Few individuals can afford to buy these kinds of investment properties on their own.

As a result the prices of these buildings are relatively low, while their returns are relatively high, compared to similar, but smaller, investments, which local investors are able to compete for.  This means this type of investment will yield higher returns without assuming higher risk.

The opposite happens with smaller real estate investment properties. Smaller investment properties generate greater competition, which drives up the price and reduces potential returns.  Therefore, in order to make the most of investment funds, seize the best investment opportunities, and assume the least amount of risk, intelligent investors should adopt the same principles of the high net worth and institutional investors, and pool resources.  This will enable you to invest in those well-positioned, quality buildings, which offer stable cash flow and high returns.  By pooling resources with other investors you will be able to invest in the higher ground too.

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Our Pooled Investment Fund Groups

We have been assembling small groups of investors for Pooled Funds, for years.

The group is comprised of a few other (typically 2 to 5) investors, with similar investment goals. As a group you will invest directly in a piece of real estate. Each member of the group will hold title to the real estate as a Tenant-In-Common. Realty Yield's Tenant-In-Common investment opportunities are not securities. They do qualify for 1031 exchanges.

NOTE: Realty Yield can take the role of Sponsor (Syndicator) and Co-Invest for those investors interested in partnering with us.

These groups typically have a 3-8 year life span, with an initial 12 to 18 month period in which a property is fixed up, rents (income) raised (maximized), and operating expenses trimmed where possible.   Next, there is a holding period, during which the property is managed for maximum cash flow, until each of the 4-engines that drive apartment investment returns reaches its peak level. At this point, the investment is producing the highest achievable rate of return to the Pooled Fund investors.  It is at this point that the property is usually prepared for sale.

We're particularly well positioned to facilitate these pooled-fund investments for private investors.  Mike has considerable experience working with owners as an asset manager, to strategically maximize returns and accelerate capital/equity growth at the highest possible rate.

Asset management is different than property management; this is a key point all real estate investors should clearly understand.  Real estate investments should be proactively managed on an ongoing basis. Every real estate investment needs an operating plan tailored around the owner’s specific investment objectives. This plan should articulate specific strategies and tactics aimed at tracking and influencing the moving parts of your real estate investment. An effective operator must understand whether a property is stable, in transition, or in need of repositioning and have a plan that anticipates and responds to the unique opportunities and pitfalls associated with that particular opportunity.

Our knowledge of real estate economics and our proven process for applying that knowledge to specific real estate investments are the keys to our clients' success.

Additional information about these Pooled Fund groups is listed below.  Alternatively, you can contact us for more detailed information, or to schedule a time to meet in person.

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Pooled Investment Fund, Real Estate Syndication

Why do investments last 3~8 years?

There are four engines that drive investment real estate returns; Cash flow, appreciation, mortgage pay down and tax benefits. The rate of return of all these combined is often called the Internal Rate of Return or IRR. Over time the tenants pay off your loan, rents go up and your building becomes worth more. Much of your new wealth, however, is in the building and can only be accessed by selling or refinancing. The rate of return on all your equity, your IRR, usually peaks somewhere around 4-7 years into an investment. Over time you build up what is often called dead equity or money that’s not working for you. To produce the highest returns while assuming the least risk, you have to turn over projects at least every ten years.

What is the minimum investment?

Typically, it takes at least $350,000 in investment capital to buy a large enough property to start seeing a higher rate of return and to realize some economies of scale. The minimum investment is really a function of how many partners you want. We’ve found that 2 to 5 are typically best. Most participating investors usually have at least $100,000 to invest.  This is not a hard rule by any means and there are plenty of exceptions.

Tenant-in-Common Entities

The Tenant-In-Common entities are each named on the deed, as well as the Tenant-In-Common entities percentage of individual ownership.  A signed agreement between Tenant-In-Common owners details respective rights and responsibilities.

One owner is designated the manager. This is an unpaid position, which can be passed among owners. This manager is responsible for contracting with a professional property management company, to handle the day-to-day operations, as decided and directed by the group.  The managing member serves as the conduit through which information, news, and correspondence, can flow between the individual owners, the property management company, and Realty Yield. The managing member is responsible for insuring all members receive their monthly income and expense reports from the management company. The managing member will typically visit the property at least twice each year and encourages all other members to join him or her.

Each year the managing member of the investment group revisits the management strategy, with both the property management company and Realty Yield.  After consultation with the group and reviewing reports, the property’s annual operating budget is discussed and prepared by the property management company.

In the event that one or more owners wants to buy or sell their percentage of ownership before the entire property is sold, the managing member works to insure the activities of the Tenants-In-Common conform to the procedures spelled out in the operating agreement.

The property management contract is typically for a period of one year and can usually be cancelled with 30 days notice. Contracts typically require the management company to get approval for all non-recurring expenses over $1,000.

Additionally, all services the owners, as a group, contract for, should have separate contracts, with payments based on specific services rendered. For example real estate commissions earned from buying and selling a specific piece of real estate, professional property management fees, legal and accounting fees and fees associated with refinancing of existing debt. The group may contract for specific products or services from an individual member of the group if that member is affiliated with a business that can offer value to the group. The contract needs to stand on its own merits and be open for review and separate from the ownership agreement.

Some of this may sound complicated but it’s not. The idea is that we’re all in this together. Realty Yield often partakes in the chosen investment.  Each owner is paid a return that is directly correlated to their percentage ownership in the property. No owner will be paid a return in any way other than as a percentage of their ownership in the property.

Why Choose Us?

At Realty Yield, we want your investments to succeed. All investors need a plan, whether your goal is capital (equity) growth, maximum cash flow, realizing optimum tax benefits or any combination thereof.

Effective real estate investing requires a strategic approach and "Buying, Holding and Hoping" is just not an intelligent strategy.

The experts at Realty Yield will guide you through the complex and ever-changing world of real-estate investment with confidence.

Other Real Estate Investment Firms typically don’t provide the ongoing guidance most real estate investors need, because most brokerage firms are only engaged during the buy/sell moments. At Realty Yield, we know that lasting wealth comes from making the right decisions between the time when you buy and when you sell. It’s knowing what to do in these moments that sets us apart.

By working with us you’ll benefit, no matter what your needs, whether you are looking to buy real estate property, sell real estate property, complete a 1031 exchange, secure a commercial loan, consult on investment real estate / portfolio performance improvement strategies, or executing a tax favorable exit strategy at retirement.

You are more than just a client, and we are more than just a brokerage firm. That’s why, at Realty Yield, we make a personal commitment to you, to create your own, unique, expertly crafted, Personal Real-Estate Investment Strategy. We give you the best results because we have the knowledge and experience to create your best plan of action. We’ll guide you through those vital decisions of what to do, how to do it, and when to do it.

We succeed where others fall short. So, ask yourself, are you really realizing the returns you could be?

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Client Testimonials

All Testimonials
Mike Carlson has the ability to analyze and plan a strategy which takes advantage of market conditions, incorporates the best financing options and most importantly, maximizes the return on your equity. Mike is the real deal, honest, trustworthy and highly capable. I am happy to recommend him to anyone looking for assistance with their multi-family portfolio.
Gary M
2003 ~ Current
For anyone with real estate investments, Mike Carlson’s services are a necessity in order to achieve top results. Mike Carlson is very astute and knowledgeable in not only all aspects of real estate investment and wealth management but also in a wide scope business matters in general.
Lynn L
2005 ~ Current
Mike Carlson and his company are great - very professional, experienced and comfortable to work with. Mike’s analysis and technical abilities is top drawer! He knows how to evaluate portfolios and properties to determine the best investment strategy. Mike Carlson’s brokerage and negotiation skills are very polished and effective. Make no mistake about it; there is a distinct advantage in utilizing an experienced financing liaison. Carlson not only found good properties but also good financing. He made the entire deal work!
John B
2003 ~ Current
Mike has been what I was looking for in a commercial realtor. He has the unique ability to apply financial numbers to a project and not let the emotions of a property cloud the analysis. Working with Mike has always been about good communication and he does a great job. When you do finally find a property worth pursuing he is not pressuring you to make the offer and get the commission. It’s more about the long-term relationship. He reassured me that if he does a good job on this deal I will probably be back for more and sure enough I am in the hunt again.
Clinton L
2008 ~ Current
We were so pleased with Mike’s handling of the sale, purchase and financing of our real estate that we referenced Mike as a contact for our children and our attorney if we should die and the children were to be left with the apartments. We knew that Mike would be honorable and not take advantage of them in settling our real estate holdings.
L Family LLC
2004 ~ Current
I have had the privilege of having a close personal friendship with Mike Carlson for nearly 30 years. As a friend, Mike is a standout. He is a loyal, honest, considerate, and supportive individual who has the ability to see and understand things from another person's perspective. Mike's candor and business savvy merely scratches the surface of his character. As he would for me, I would do anything to help him or his family.
Chris H
Current
I have been working with Mike since 2002. He is the driving force behind the investment real estate strategies implemented leading to our wealth gain over the last 8 years. He has handled all of our significant transactions and loans. When I contacted Mike in late 2008 and told him I thought I wanted to retire and sell my properties, he actually talked me out of it. How many brokers have you ever met that passed on a significant commission because he knew the market timing was not right? He told me the same thing again in 2009. If this doesn’t show his integrity and prove that he always has his client’s best interest in mind, I don’t know what does. I will act when he tells me its time.
Linda G
2002 ~ Current
Mike Carlson possesses an amazing range of skills and abilities from a constant understanding of the big picture to meticulous management of all the details of complex investment real estate transactions. For anyone with real estate investments, Mike Carlson's services are a necessity in order to achieve top results. Mike Carlson is very astute and knowledgeable in not only all aspects of real estate investment and wealth management but also in a wide scope business matters in general.
Lynn W
2005 ~ Current