Trion Properties Review 2023
|By: Jeremy Biberdorf||Feb 27, 2023|
In a nutshell: Trion Properties is a real estate investment company that specializes in multifamily properties located in Southern California. The company handles everything from acquisition to property management using funds invested by accredited investors.
Offering investors a long-term form of passive income, Trion Property investors enjoy consistent dividends from their real estate investments.
This sounds simple enough, but what’s the actual process? Are there any catches you should watch out for? Find out in this Trion Properties review!
|Real estate investment sponsor||Various (see below)|
Minimum investment of $50k
Trion Properties is best for…
Individual investors who want to enjoy the benefits of real estate property investments without having to acquire and manage the properties themselves. Trion Properties only offers this investment opportunity to accredited investors; non-accredited investors will have to consider alternative options.
Since the company already has its own dedicated property managers, investors don’t need to actually concern themselves with the state of the properties themselves. Actually, Trion Properties generally targets “fixer-upper” properties, which can be restored and rented out at a much higher price.
Selecting this type of property also means that Trion Properties can benefit from long-term appreciation. This strategy not only gives the company an average internal rate of return exceeding 25%, but offers amazing investor returns as well!
- 17 years in business
- Dividend income
- Average IRR of 25%+
- Must be an accredited investor
- $50,000 minimum investment
- Long-term investment
What is Trion Properties?
Trion Properties is a real estate property investment firm based out of West Hollywood, CA. Compared to other private equity investment companies, Trion Properties operates within very specific guidelines, only investing in multi-family properties.
At first, they only invested in properties located in Southern California. However, they have recently branched out across the country.
Founded in 2006, the company has a long history of successful investors, resulting in high-yielding passive income for investors. This history makes it a great option for investors who want to reach their investment goals using passive income. Investing via Trion Properties is also excellent for supplementing your current income.
Since the company only offers investment opportunities to accredited investors, the minimum investment is higher than non-accredited investment opportunities. Currently, the minimum investment is $50,000.
When investing with Trion Properties, you’ll do so through a multifamily fund., rather than via individual investments for each property. Currently, the company only has one real estate fund available: the Multifamily Fund IV.
The Multifamily Fund IV is targeting a $100m capital raise, with the goal of acquiring up to 18 properties for the fund. The company anticipates a 6:0%-8.0% cash-on-cash yield, with an internal rate on return of 12.0%-15.0%. If reached, these numbers mean that the average return for each investor should be very profitable.
You will be responsible for paying a small variety of fees when investing through Trion Properties. These fees are fairly standard, but you should be aware of them nonetheless.
Here are the various fees currently listed on the Trion Properties website:
- Management fee: 1.0% of the average daily amount of the total capital invested
- Diligence and servicing fee: 1.5% of the average daily amount of total capital invested for members that invest in the Fund through a broker-dealer
- Acquisition fee: 1.0% of the purchase price of each property
- Property management fee: Greater of (i) $4,000 per month and (ii) 4.0% of gross revenues collected on a monthly basis
- Construction management fee: 5.0%
- Loan origination fees: Not to exceed 1.0%
Although investing with Trion Properties can be very profitable, there are some obvious limitations. The first limitation is investor standards: the company only accepts accredited investors. This means that you’ll need a net worth exceeding $1m or an annual individual income over $200k+ ($300k for couples) to invest.
In the past, Trion Properties had limited their investments to Southern California. However, they’ve recently expanded their property scope, allowing them to acquire properties across the country. This is good for investors. Still, the company only invests in multi-family homes, which somewhat limits diversification across the real estate market.
It’s also worth considering how fast you’ll start seeing returns. Unlike stocks, where gains (and losses) are realized instantly, Trion Properties investments will take months—if not years—to start seeing results.
Is Trion Properties Right for You?
If you’re an accredited investor who’s interested in investing in multi-family homes but don’t feel like handling acquisition and property management yourself, Trion Properties is a great alternative. Investing in the fund grants you instant access to various properties across the real estate market, essentially eliminating any requirements from you (beyond the initial investment requirements).
With a long history of success and a consistent rate of return, this company is as safe of an investment as you’ll find within this sector of the real estate market. That said, you’ll only be investing in multi-family homes, making Trio Properties a poor choice for those who truly want to diversify their portfolios.
Curious about Trion Properties’ current offerings? Or perhaps you want to see their past performances? Either way, you can find exactly what you’re looking for by clicking here!