Everything You Wanted to Know About SparkRental’s Real Estate Co-Investing Club

The Big Picture On Spark Rental’s Real Estate Co-Investing Club:

• • Spark Rental’s Real Estate Co-Investing Club is a passive real estate investment club that presents vetted deals to members, targeting 15%+ annualized returns. The club isn’t a sponsor or fund-of-funds but acts as a connection point to carefully selected investment opportunities.
  • The club maximizes diversification across syndicators, property types, and markets. It presents one deal at a time (with plans to expand), hosts virtual meetings for deal presentations, and requires quick action (2-3 days for verbal commitment, 7-10 days for funds transfer).
  • Members receive quarterly distributions, with cash-on-cash returns typically ranging from 4-8% annually. Some deals offer fixed-interest notes, paying 10-12%. The club sometimes secures preferential returns through collective bargaining power.

Spark Rental’s Co-Investing Club is a straightforward operation: We organize an investment club for passive real estate investors. We’re not a sponsor, we don’t sell securities, and we don’t run a fund of funds. You can think of us as your connection point to carefully vetted real estate investment opportunities.

Our selection process is guided by one primary principle: maximum diversification. Yes, we’re constantly looking for different syndicators, property types, and geographical markets.

But these aren’t just random deals we’re throwing your way. These are the same investments where we put our own money. We’re particularly focused on finding deals that offer the best risk-adjusted returns.

And yes, we know you’re probably wondering if you can schedule a one-on-one call with us right off the bat – but as a tiny team of just a few people, we’d never get anything done – but, we did put together the most common questions we receive about our Co-Investing Club for you to review.

What About Multiple Deals? Do You Present More Than One At A Time?

Until now, we’ve maintained a focused strategy of presenting one carefully selected deal at a time. This has allowed us to give each opportunity the thorough attention it deserves.

But as our club grows, we’re exploring other possibilities. Specifically, we’re looking at potentially featuring additional deals, particularly for our accredited investor members. 

We believe this could create more diverse investment opportunities while maintaining our standards for each deal we present.

One thing to notice here is balanced growth—we want to expand opportunities without compromising the detailed attention we give to each investment option. 

What Kind of Returns Should Investors Expect?

Right, everyone wants to know the numbers. We look for investments targeting 15% or higher annualized returns. A portion of this usually comes from ongoing income (cash-on-cash return), usually ranging from 4-8% per year.

And sometimes, we’ll mix things up with fixed-interest notes paying 10-12%. As for income-paying investments, you’ll see quarterly distributions rolling in.

However, every deal is unique, and that’s the reality for every investment. So, we can’t predict exactly how any investment will perform until it’s all said and done.

It’s like that old saying, “Past performance doesn’t guarantee future results, but it sure helps to know what you’re aiming for!”

Does The Club Ever Get Preferential Returns On Syndications?

Yes, we do sometimes secure preferential returns! An interesting dynamic makes this even more exciting.

 We find ourselves in an increasingly stronger position to negotiate better terms. It all comes down to the power of collective investment. When we can meet certain minimum investment thresholds as a group, sponsors often offer preferential terms that wouldn’t be available to individual investors.

 Strength in numbers. The larger our club grows, the more leverage we have in these negotiations.

What Happens Next After A Deal Is Selected?

Once we identify a promising opportunity, we schedule a virtual meeting for all members. The sponsor presents a brief overview of the venture, which is then followed by what’s often the most valuable part – an open Q&A session. This way, we can ensure everyone gets their questions answered before making decisions.

What Occurs Following The Deal Vetting Session?

After the presentation, you’ll receive an email with the meeting recording and key statistics. If you’re interested in the deal, you’ll get access to an opt-in form and simple, step-by-step instructions for the next steps. Is everything clear so far? 

Do You Have A List Of Deal Vetting Questions Available?

Yes! For all our detail-oriented investors (and we know many of you!), a deal vetting worksheet is available to all Club members.

 Specifically, we developed a vetting worksheet based on years of experience and countless deals. These sheets actually help you evaluate potential investments—no BS. 

 Perhaps the best part is that it’s not just a static document. The vetting sheet is continuously refined and updated as we learn from new deals and member feedback.

What Is The Time Span From Presentation To Investment Money Transfer?

We prefer to keep things moving efficiently. After the group deal discussion, we usually need a verbal commitment within 2-3 days.

You’ll have a 7-10-day window from there to transfer your funds into the joint bank account. No dawdling is allowed—good deals wait for no one!

How Often Are Distributions Of Profit Made?

Spark Rental’s Co-Investing Club operates on a quarterly distribution schedule, and it’s as regular as clockwork:

(article continues below)

Real estate investments? Awesome.

Being a landlord? Less fun.

Learn how to earn 15%+ on passive real estate investments in our free video course.

Have Any Deals Lost Money?

We believe in transparency, so here’s the straight info: out of our 20-some deals, one sold at a loss with a “hope note” attached (meaning investors might get some money back when the property sells again).

This actually illustrates our investment philosophy perfectly: even the most thorough due diligence can’t eliminate all risk. That’s why we spread investments across various property types, markets, syndicators, etc.

It’s the law of averages in action. You end up with a bell curve of results, where some deals underperform, others overperform, and most land somewhere in the middle.

Why Am I Required To Pay An Annual Accounting & Administrative Fee For Deals I Participate In?

Spoiler: things get a bit technical here, but stay with me.

Each deal involves various accounting and administrative expenses, which include state and federal filings, K1 preparation, distribution management, and maintaining the LLC in good standing.

For each deal, members can choose between in-house administration ($75 per person per year) or outsourcing to Tribevest ($150 per year).

How Are Year-End Taxes Handled?

For taxes, here’s our tip: assume your K1s will be late and file an extension. 

Even after we receive the sponsor’s K1s (which often arrive fashionably late), our accountant needs time to prepare individual member K1s.

When it comes to tax documentation, we like to “plan for the worst, hope for the best.”

How Do Taxes Work If We Get A 1099 From The Sponsor?

Well, even if you receive a 1099 from a sponsor partner, you’ll still get a K1 from us that reflects your share of the income shown on that 1099. We’ve structured it this way to ensure everything flows easily from a tax reporting perspective.

It’s basically a two-step process: the sponsor reports the overall income, and then we break down your specific share through the K1. Of course, our accounting team handles all the details to make sure everything aligns perfectly.

(article continues below)

Want to compare investment property loans?

What do lenders charge for a rental property mortgage? What credit scores and down payments do they require?

How about fix-and-flip loans?

We compare the best purchase-rehab lenders and long-term landlord loans on LTV, interest rates, closing costs, income requirements and more.

Can I Invest With A Self-Directed IRA?

Yes! However, given the tax advantages of real estate syndications, many of our members prefer investing with personal funds. But if you’re interested in the SDIRA route, we can point you toward reputable custodians.

Here are a few SDIRA custodians you can reach out to (if you don’t already have one): 

• https://DirectedIRA.com/sparkrental/ (features a discount)
• https://SpecializedTrustCompany.com/
• http://www.TrustETC.com 

Can I Join The Co-Investing Club Without Being An American Citizen Or Resident?

This is good news for our friends abroad—you can join! 

You’ll just need two important things: a US tax ID number and a US bank account, both of which can be obtained by opening an LLC in the United States. 

Or better yet, read our article about non-citizens investing in U.S. real estate syndications.

How Do Capital Calls Work Within The Club?

We handle capital calls democratically. If one occurs, all participating members in that specific deal vote on whether to fund it. 

We require a unanimous “Yes” vote to proceed with funding—we’re all in this together!

Can I Invest In The Same Deal As Several Entities Or People?

This isn’t a simple “yes” or “no” question. 

It works like this: you get one investment per deal per Club member. Married couples can invest together from a joint account, while business partners can invest as a single legal entity.

However, if your sister wants in on the action, she must join the Club separately.

What About the “Lazy 1031 Exchange”?

Don’t let the name fool you. It’s not actually a 1031 exchange, but it serves a similar purpose in deferring capital gains taxes. 

Thanks to accelerated depreciation, investors typically receive a substantial tax write-off in their first year of syndication investment.

You can easily offset property gains taxes if you just invest in a new syndication the same year an older one sells and distributes profits. Clever, isn’t it?

Read our article about the so-called Lazy 1031 Exchange to learn more about it.

Can I Cancel My Membership?

Of course! You can cancel, pause, or drop out at any time. Just keep in mind our one-time policy: you can only cancel and rejoin once per year.

Also, remember that you’ll still need to pay the annual accounting and administration fees for any deals you’re invested in until they close.

Can I Schedule A Call To Learn More About Your Co-Investing Club?

While we can’t do individual calls (remember that tiny team we mentioned?), we make ourselves available before and after every Club meeting.

Plus, we have a no-questions-asked refund policy for Club dues. So, if you attended a meeting, chatted with us, and decided it was not your cup of tea, we’ll refund your membership dues immediately.

Final Thoughts On Spark Rental’s Real Estate Co-Investing Club

Our Co-Investing Club is built on transparency, diversification, and shared success. We’re not just facilitating investments – we’re investing alongside you in every deal we present.

Although we can’t eliminate all risks (wouldn’t that be nice?), we can provide a structured, professional approach to passive real estate investing to maximize returns while spreading risk across multiple opportunities.

Real estate investing is a journey, not a sprint. We’re here to help you navigate that journey with carefully vetted opportunities, clear processes, and a supportive community of real estate investors—beginners and experts.

And hey, if you have any questions we haven’t covered here, feel free to email us. Our team may be small (for now), but we’re always happy to help! Also, you can find the full details about the Co-Investing Club here: https://sparkrental.com/coinvesting/.