Using equity loan to reinvest into syndicate (property)

Hi guys

Have a few residential investments each with a bit of equity in them.

I would like to further invest in something that's going to generate more yield or cash flow if possible and recently looked into a company called Acuream, which specialize in property syndicates.

Has anyone had any experience with property syndicates and can shed any light on them?

Possible idea in my head: I thought I could look into taking out a separate equity loan against one of my residential investments, and then reinvest this money into a syndicate buy in.

Lets say the equity loan interest rate is 6% and the return on the syndicate is 12%, in theory this would still give me a cash flow return and because the loan funds borrowed are put towards another investment, wouldn't that also make the equity loan interest, tax deductible?.

This is a real pie in the sky idea at the moment and I'm not doing anything without due diligence but just wanted to see what an expert thought on the above if possible.

Any advise appreciated

Thanks

 

Why would you think these syndicates perform any better than you could with your equity?

 

I wonder if maybe he doesn't have enough equity to buy another so a small share in a syndicate is all he can afford.

 

If you borrow to invest and the investment produces income then the interest would generally be deductible.

 

If the investment is to share in profit from a construction it may not be deductible but may reduce a future net profit share subject to tax.
If there is no "fixed" entitlements from a poorly organised "syndicate" there is no deduction
There could be legal risks and issues since a "syndicate" is not a legal entity or structure and you may have no right to "call for" profit eg company shares.

I would be considering legal advice and tax advice.