How Trion Provides Passive Income to Real Estate Investors
Unlike stocks or bonds, real estate investing often demands hands-on management. Individual real estate investors are responsible for property maintenance, taxes, insurance, and the search for potential tenants.
Trion Properties changes all that providing accredited investors passive real estate investing exclusively in multifamily properties. Here’s how it works, and how Trion differs from investment platforms.
What Is Passive Real Estate Investing?
Trion allows investors to tap into the benefits of a passive real estate strategy, which means that they provide a portion of the capital and the team at Trion handles the acquisition, day-to-day responsibilities of managing and maintaining the property, then selling the property when the time is right.
The initial investment is your only commitment, and you can rest easy knowing that the property is in the experienced hands of professional sponsors and operators with a 17-year track record of remarkable success.
What Is a Sponsor in Real Estate?
Trion Properties serves as a real estate sponsor (or syndicator). As the “general partner” (GP) Trion is responsible for the acquisition and administration of a real estate investment property.
A real estate sponsor acquires the property, maximizes its value, and ensures that investors receive their profits. A sponsor can also prepare tax documents such as the 1099 or K-1s during tax season.
Sponsors may work with more than one investor per property. For example, a real estate sponsor may be responsible for aggregating funds from multiple investors to purchase a given property. This is Trion Properties’ approach. It puts large, multifamily properties with significant growth potential within financial reach for the individual investor.
How to Buy a Multifamily Property
Thanks to economies of scale, a multifamily property provides a superior return on investment (ROI).
But the cost of commercial real estate and apartment complexes is prohibitive for individual investors. This makes a real estate sponsor the only option.
Trion Properties offers multifamily funds which help to lower the cost of an initial investment. You can invest in one of Trion’s properties with just a few clicks. Simply register for a Trion account and search its portfolio of investment opportunities. You can select from a variety of their multifamily properties, with locations concentrated in high growth areas throughout the Western and Southeastern U.S.
Investors might also consider sinking their money into multiple properties to diversify their real estate portfolio. Again, a sponsor such as Trion makes this easier, since you can use a multifamily fund or a few of their individual properties to invest in real estate without the cost of managing the property on your own.
To kick off investing you’ll need $50k as a minimum, but with 17 years of proven success you can almost guarantee positive returns in the coming quarters.
Why Renovate an Investment Property
Renovating an investment property can be a great way to maximize your investment; you can purchase the property at a low price and then increase its value through structural and cosmetic improvements. As a general rule, the more dramatic the renovation, the greater the reward for property owners and investors.
The flip side is that performing these sorts of renovations demands either skill or funding — and usually both. A real estate sponsor can help with this. Trion Properties, for instance, pursues opportunities in multiple locations throughout the U.S. with an aim to rehabilitate these properties into affordable housing that benefits investors as well.
How Do Investors Evaluate Real Estate Sponsors?
Not all real estate sponsors are the same, of course. Before you commit to any real estate investing platform, you’ll want to carefully examine at least five aspects of the sponsor.
1. What Is the Sponsor’s Track Record?
One of the most important things to consider is the sponsor’s track record. Has the sponsor demonstrated success in the past? This will give the sponsor greater credibility and you greater confidence in receiving a return on your investment.
The good news is that Trion delivers an exceptional track record, having been in operation since 2005. During this time the company has successfully closed $1.5 billion in real estate transactions, and it currently maintains a client base of 1,000+.
This 17-year track record certainly gives Trion an authoritative presence among real estate investors and showcases the effectiveness of its business model.
2. What Is the Sponsor’s Investment Strategy?
Second, it’s important to find a sponsor with an investment strategy that aligns with your financial goals. For instance, you may be interested in a particular area of real estate, and this might prompt you to seek out a sponsor that specializes in a real estate niche.
Trion is one such sponsor. The company focuses on multifamily real estate property, including apartment buildings and complexes. By pursuing structures that require rehabilitation, Trion is able to create quality real estate opportunities and maximize the return on your investment.
Additionally, Trion relies on a vertical integration strategy, which cuts down on the number of outsourced processes. The end result minimizes and controls costs. This streamlines the investing process while introducing a degree of predictability in property maintenance.
3. Where Does the Sponsor Operate?
Where are the investment properties located? This is an important question because different geographic regions will have different housing markets and different local economies. These factors can influence the property’s financial performance.
With Trion, users can select from properties across the U.S. Existing real estate investors might use the platform to diversify their holdings and invest in properties from multiple geographic and economic areas.
The result of having a wide selection of locations is an approach that offers stability as well as diversity. This can protect your investments regardless of how well an individual housing market performs.
4. What Is the Expected Return on the Investment?
How much can you expect to make with your real estate investment opportunity? Obviously, no sponsor is able to make financial promises, but you can still look at the initial cost of an investment and the sponsor’s track record of returns to get an idea of what you can make.
Investors will need a minimum of $50,000 to invest in one of Trion’s properties. However, the company boasts a 25% internal rate of return (IRR). This makes Trion’s business model quite lucrative.
Keep in mind also that rental properties tend to be recession-resistant. So unlike investments in the stock market, your real estate investments will grow over time without being affected by economic volatility or changing consumer trends.
5. How Do You Monitor Your Investment?
Every investor knows the importance of monitoring their investment over time. This can be particularly important for passive investors, who are otherwise uninvolved but need to keep track of how their investment is being managed by their real estate sponsor.
The Trion platform allows users to easily monitor their investment properties, and the company offers clear, direct client communications to deliver a superior level of customer service.
What Sets Trion Apart?
Trion’s unique business model makes it easier than ever to invest in multifamily real estate property. And because Trion acts as a sponsor, investing in commercial real estate requires no other involvement apart from your financial input.
With nearly two decades of operation and a potential 25% IRR, its track record showcases the stability and success of its unique business model in all economic climates.
Who Can Invest with Trion?
To use Trion’s platform, you must be an accredited investor, which means that you meet the SEC’s guidelines that enable you to make specialized, high-dollar investments. Additionally, because Trion requires a minimum investment of $50,000, the platform may appeal most to high-net-worth individuals.
An accredited investor can be someone that 1) Has an annual income of at least $200,000, or $300,000 if combined with a spouse’s income; 2) Holds a valid Series 7, 65, or 82 license; 3) Has a net worth of >$1 million or more, excluding the value of a primary residence.
Trion vs. REITs
It’s important to distinguish Trion’s approach from Real Estate Investment Trusts (REITs). In an REIT, a corporation pools together real estate properties, which investors can then invest in. But with Trion, investors rely on a real estate fund to purchase individual properties of their choice.
And while REITs can be subject to market fluctuations, Trion provides a more reliable approach to long-term growth.
Trion vs. Crowdfunding
Trion’s approach should also be distinguished from the crowdfunding model that’s become increasingly popular in real estate investing.
Through crowdfunding, an online entity serves as an intermediary between a sponsor and a group of investors. The investors provide the capital needed to acquire and/or renovate the property, and in exchange, the investors receive a portion of the profits.
While this approach removes some of the barriers associated with commercial real estate investing, Trion’s model completely eliminates the middleman of the financial intermediary. This ensures a greater probability of return and streamlines the entire process.
Trion: A Great Tool for the Right Investor
Trion offers a terrific resource that allows investors to get on board with multifamily real estate properties. This unique approach makes it easier than ever to invest in these commercial real estate structures. Having been in operation since 2005, the company boasts a solid track record and a strong return on investment.
If there’s a downside, it’s that the platform still favors high-net-worth and accredited investors. But for those who can afford to make these investments, Trion offers a strong option and a competitive model for real estate investing. Sign up today and start generating high yielding, passive income.