Trion Properties is a real estate investment company that specializes in multifamily property investment and management. Their services cater to accredited investors and they handle everything from acquisition to property management. If you’re looking for a long-term passive income source, investing with Trion Properties might just be the answer you’re looking for.
But wait, what’s the catch? What’s the actual process behind Trion Properties? Well, in this Trion Properties review, we’ll go over everything you need to know, from how it works to the types of investors that stand to benefit the most.
What Is Trion Properties?
Trion Properties is a real estate investment firm that specializes in multifamily properties located primarily in Southern California, but with recent expansions across the country.
Founded in 2006, Trion Properties has a long history of successful investments, resulting in high-yielding passive income for investors. They focus on acquiring, underwriting, and managing all their investments, and primarily target a niche of older properties that can be cost-effectively enhanced to meet comparable properties in the surrounding area.
Trion Properties is a vertically integrated company that acquires, renovates, and manages multifamily properties, offering investment opportunities to accredited investors through direct deals and its multifamily fund. The minimum investment is $50,000.
Investing through Trion Properties is an excellent way for investors to reach their investment goals using passive income. With roughly half of its investment opportunities located in high-growth markets in the southeastern United States, Trion Properties offers investors a chance to mitigate their risk while aiming for big profits through property sales.
Trion Properties Investment Approach
Trion Properties specializes in investing in multifamily real estate. The company acquires buildings that are in poor condition, often at a discount, and then renovates and manages them to create affordable apartments for tenants.
The company’s investments are strategically located in communities with up-and-coming growth and are chosen based on factors like population growth rates and rental demand. Trion’s vertically integrated approach allows them to oversee the entire process, from acquisition to management, providing them the freedom to customize each property based on the community’s needs.
Investors can browse the list of current investment opportunities or invest in Trion’s periodic funds that allow them to invest in multiple properties at once. Trion’s newest fund, the Trion Multifamily Opportunity Fund IV, LLC, was launched in February 2023 and is expected to contain between 8-12 total properties.
Investors receive both dividends based on the property’s revenue and potential appreciation minus costs and fees. The average hold time for Trion properties ranges from three to 10 years, and the company has purchased 84 properties since its inception and exited 40.
Investing through Trion Properties requires paying several fees. These fees are pretty standard, but it’s important to be aware of them. The fee structure is complex and varies depending on the property and fund type. Unlike some of their competitors, they do not charge a set fee management fee.
The fees listed on the Trion Properties website include a management fee, diligence and servicing fee, acquisition fee, property management fee, construction management fee, and loan origination fees. Investors who invest in the fund through a broker-dealer will pay a higher diligence and servicing fee of 1.5% of the average daily amount of total capital invested.
Trion pays out profits through a “promote” structure, which is a form of compensation paid to the fund’s sponsor, Trion, using the fund’s cash flow to incentivize the sponsor to ensure a profitable project. The better the property, the better Trion does, and the better the investor does. Trion also offers breakpoints for higher levels of investment or investing in a fund in its early stages. These breakpoints are used to encourage higher investment levels and reward investors who commit more to the fund.
To read a more comprehensive breakdown of the fees and pay out structure, read this Trion Properties Review.
Trion Properties Review: Pros & Cons
Like with everything in this world, Trion Properties has its own advantages and disadvantages. Let’s take a look at the most important ones.
- In operation since 2005
- Relies on in-house, tightly controlled property management
- Has a solid track record and IRR
- Passive income opportunity for investors
- Low-risk investment strategy
- Minimum $50,000 investment
- Complicated fee structure
- Limited properties available
- Available solely to accredited investors
Trion Properties Alternatives
If you want to generate passive income from real-estate but are not sure if Trion Properties is your best option, you’re in luck. There are many great alternatives on the market. One that should be mentioned is First National Realty Partners.
First National Realty gets its investors quarterly cash flow through rents produced from their high-performing, grocery anchored commercial real estate holdings. To find out more about this Trion Properties alternative, read the full First National Realty Partners Review.
Is Trion Properties Right For Me?
Trion Properties is a great option for investors who are looking for a passive approach to real estate. With their experienced team of dedicated property managers, investors do not have to worry about managing the properties themselves. The company targets “fixer-upper” properties that can be restored and rented out at a higher price, leading to long-term appreciation and a potential average internal rate of return exceeding 25%.
It is important to note that only accredited investors can participate. Also, most properties have an 18-month reposition, so investors must be prepared for a long-term investment.