At Task Force Capital we specialize in investing in, managing, and selling RV parks and multifamily properties. We’re a commercial real estate syndication business, which means we pool money from investors to purchase a commercial property. This generally results in great returns for our investors.
As the syndicator (or “General Partner” or “Sponsor”) we find, analyze and close the deals. We work closely with a property manager that we hire or a contracted property management company to manage our properties and improve them before we sell it for a profit that we’ll share with you.
Depending on the deal, as our limited partner (or “passive investor”) you may also earn a return on your investment through the rent payments.
In our experience, the returns have been much higher than other types of investments, and have had a more stable trajectory. There are also tax advantages to investing in multifamily.
Investing in a syndication means you’re able to buy a larger deal than you might be able to personally since funds are pooled from many investors.
One of the great things about investing passively is that you don’t have to worry about the day-to-day operations and the execution of the business plan. We handle all of that and just communicate with you to keep you informed about how things are going.
Excellent question. Doing your research and asking the right questions is key for finding the investment opportunity that’s best for you. As no two syndicators or deals are alike, we suggest asking questions like …
“Who’s the syndicator/sponsor and who are they working with?”
We understand that you entrust your hard-earned money to the syndicator to create a return for you. That’s why you want to know as much as possible about them. You want to trust that they can make you money. Try to get to know them, their team and what they stand for.
To learn more about our team, visit our “About Us” page and get to know us.
“When will I receive the money?”
Investment periods vary. They range from 1 or 2 years, up to 10+ years, with the average being 3-7 years. Every syndication business takes a slightly different approach, and a lot depends on the deal.
A common scenario is to have some modest cash flow starting from rents within the first couple years, maybe increasing gradually, and then the big payout at the end when the property is sold or refinanced.
It’s your money, and you have goals and needs that are specific to you, so find a deal that works for you.
For example, maybe you want to retire in 10 years and want to increase your investment as much as possible. Or maybe you know you’ll have something else you’ll want the money to be available for in a few years and a shorter-term deal would be a better fit. Find a deal with the investment period that’s in line with your financial goals.
“What’s the minimum return on investment (ROI) I’d accept?”
Commercial real estate deals vary. That’s why you cannot assume that the ROI of one deal is the same as a previous deal. Always get the necessary information on the ROI and see if it’s what you realistically expect.
If you’re interested in investing with us, fill out this form and we’ll talk about your goals and work toward finding a deal that works for you.
Another good question. Of course, you’ll want to speak to your accountant to find out exactly which tax benefits you’re eligible for. But there is potential to save thousands of dollars. If you meet certain requirements you could benefit from:
Depreciation benefits
Using your self-directed IRA
A 1031 Exchange
These are a few possible ways you can give yourself a tax break and save money. We recommend that you talk to a professional accountant to make sure you maximize your savings.
Most private real estate syndications require a minimum investment of $50,000, which you can invest out of cash funds or an IRA. Some real estate investment vehicles, such as REITs, accept smaller investment amounts, however, they won't offer you the same tax advantages that a private placement syndication will. Each investment vehicle has its own pros and cons. In general, if your net worth is $200,000 or above and you want to reduce your taxable income, a syndication is the most capital and time-efficient method to invest.
Why should I invest in real estate syndication instead of a single family property?
Because single family homes are not the best use of your investment capital, and more importantly, they are not the best use of your time. Remember, TIME IS YOUR MOST VALUABLE ASSET. With any investment, financial or otherwise, you should seek a good return on time as well as a return on capital. If you operate your single family home investment well, you may be able to generate a few hundred dollars of net income per month (remember to factor in capital expenses - things like a refrigerator or paint refresh that you may not purchase for years). That's not bad, but will it really change your day to day life? Now do the math - how many properties will you need to acquire and operate to generate enough cash flow to recuperate enough time to put where you really want to (likely not into your W-2 job)??
Second, because you can't control nor project the profitability of a single family home investment. A single family home's value is based on three factors that are out of your control: comparable properties, the real estate market, and interest rates. Because those factors shift so much from one year to the next, it is nearly impossible to predict the value of a single family home five years from now. In contrast, a commercial property's value is based almost entirely on the net operating income it produces. That means that you can control the value of the property by increasing revenue and/or reducing expenses. Since the value can be controlled, that means it can be projected prior to investing in it. We will always provide you with a conservative projection of the future value of an investment property, and hence can give you a projection of the return on investment you will achieve. Our investment track record will attest to the accuracy of our projections. Can a single family home do that for you?
Thirdly, because commercial real estate takes advantage of economies of scale, which reduces risk, unlike a single family home. Economy of scale means that as you increase the number of units, the ratio of expenses to revenue gets smaller. In addition, occupancy rates affect commercial properties and single family homes in very different ways. A commercial property that has 30 units will not take a big hit to profitability in the long term if a few units are not occupied and not generating revenue for a few months. Got a single family home rental that goes vacant for a few months? You can kiss profitability goodbye for that year.
If your net worth is less than $200,000, a syndication is likely not a good investment vehicle for you, because with a minimum investment of $50,000, at least 25% of your net worth will be tied up in one single investment. I wouldn't recommend that to my sons, nor to you. In that case, I recommend a different investment vehicle until you achieve a net worth of $200,000. A single family home is not a terrible way to do that, because you can get into one with less than 25% of your net worth. However, a more time-efficient investment that would offer the same benefits is a turn-key condo.
If you decide to invest in a multifamily syndication, you will receive a steady, passive income. With RV spots and apartment units rented out, you’ll have a constant flow of cash coming in without the hassles of property ownership. And then, of course, you’ll generally get the most returns once the property is sold for a profit.
Historically, multifamily investing also performs better during a recession. Sure, an economic downturn hits everyone, but even during a recession there will be tenants paying rent so that you continue to get a return on your investment.
How do I get started investing with Task Force Capital?
Certain types of deals require us to have a relationship with you prior to presenting any deals with you. The best place to start is by telling us more about yourself and your investment goals. Then, as we get to know each other better and deals come up that fit your criteria, we would love to work with you.
Just click here and let us know about your interest and we’ll set up a no-obligation call to get to know each other.
A commercial real estate investment company with a focus on RV/ mobile home parks and multifamily apartments
Mailing Address: 2650 FM 407E STE 145 #159, Bartonville TX 76226
Phone: (703) 861-6583