
The syndication model is great for our investors and ourselves as it provides a great opportunity for our investors to be limited partners on the deals (hands off) and still take part in all of the upsides. Limited only up to the amount of capital they contribute to the deal they do not have to personally guarantee any of the loans. Since they are considered partners they are able to offset the rental income they receive by utilizing the depreciation. We order a cost segregation study which essentially puts a life span on physical components of the property and allows us to deduct those values over time against the income. The model is great for us as we can scale beyond what we could ordinarily with the limits of our own capital.