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passively investing in multifamily real estate syndications
Why Multifamily
Investing in multifamily real estate is a powerful investment choice due to a number of reasons including:
1. Supply – There is a national shortage of affordable housing.
2. Demand – High demand for apartment or managed residential living due to an increasing need.
3. Tax Incentives – Ability to benefit from large project depreciation on the asset. Please go to our friend’s page at the Bigger Pockets to learn more about the tax advantages of real estate.
4. Economies of Scale – Expenses of a property are able to be spread over large number of residents.
5. Returns – Double digit return on investment which outpaces traditional investing.
Over the last 15 years, the average stock market return was slightly over 7%, however, after taxes, fees, and inflation, the actual returns were only around 2.5%.
Alternatively, real estate syndications typically generate average annual returns of 13% or more — even after fees are deducted. RE syndications are also taxed at a much lower rate, creating an outstanding hedge against inflation.
What Is A Syndication
Simply put, a syndication is a group of like-minded companies or individuals pooling resources in order to acquire and manage a large multifamily property. Typically it involves a partnership between general partners (i.e. the syndicator) and limited partners (i.e. the passive investors) to acquire, manage and sell a real estate property while sharing in the profits.
In an apartment syndication deal, the investor will own shares or a percentage of ownership in the company that owns the property. Prior to closing on the property and at investment, the investor will sign legal documentation stating the terms of the project and outlining the ownership.
Investors are given a Private Placement Memorandum (PPM), a document that outlines the profit distribution terms of the investment, how an investor might exit or sell shares, etc. and the primary risk factors involved with making the investment.
A “Subscription Agreement” will be established between the company owning the property and investor(s) that sets out the price and terms of a purchase of shares in the company. The subscription agreement details the rights and obligations associated with the share purchase.
Who Can Invest
An accredited investor is any person that can make an investment whose personal income is $200,000 (or $300,000 jointly with spouse) for the last two years, with the expectation of earning the same or higher, or who holds a net worth exceeding $1 million either individually or jointly (excluding the value of their primary residence.)
It is not required that you fit the profile of an accredited investor to work with us. drop us a line to start a conversation about your investment goals.
The minimum amount to invest is typically $75,000. Starting out small and growing with us is the best way to start building your generational wealth. Join Our Partner Network, to learn about our active investment opportunities.
To understand more on what it means to be an Accredited Investor, CLICK HERE.
multifamily real estate investments
Enjoy passive real estate income without the hassle of management.