Why invest in a multifamily apartment syndication?
Apartment syndications allow individuals to aggregate experience and capital in order to participate in otherwise unobtainable real estate investment opportunities. For more detailed information on why we believe multifamily real estate is one of the most ideal investments, please visit our WHY REAL ESTATE page.
What is ‘Passive Investing’ in multifamily real estate?
Passive investing in a multifamily real estate syndication is the act of investing in a particular asset without much, if any, investment of ones time or energy thereafter. Our passive investors, or Limited Partners, are typically busy professionals who understand and appreciate the merits of investing in multifamily real estate, but may not have the time, resources, or experience to pursue an active role.
Who can invest passively in a multifamily syndication?
Due to SEC regulations regarding private placement offerings (raising capital) we typically prefer to work with Accredited Investors. To qualify as an Accredited Investor, one must have earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expect the same for the current year or have a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). To find out how to become accredited, please CONTACT US directly.
What are my options if I do not qualify as an “Accredited Investor”?
Under certain circumstances, we consider investments from non-accredited investors if they can be categorized as a sophisticated investor. Generally speaking, sophisticated investors must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment. To find out if you qualify as a sophisticated investor, please CONTACT US.
What is the minimum investment amount?
While this generally varies from project to project, the typical minimum investment ranges from $50,000 to $100,000.
How are returns given to passive investors?
Returns are generally distributed via quarterly payments. Each syndication is a business with varying distributions based on the performance of the asset and the particular business plan being implemented.
How long is the typical investment term?
Again, each project is different, but the average investment term ranges from 3-7 years. During the investment term, quarterly cash distributions provide our investors ample returns on their investment. We also aim to return a substantial portion of our investor’s initial contribution prior to the end of the investment term through a strategic refinance of the asset.
What are the typical returns for investors?
There is no ‘one size fits all’ approach for returns to investors and each investment opportunity will have a unique balance of returns through cash flow, principal pay-down, and asset appreciation. We encourage those interested in passively investing to contact us directly for specific information regarding total returns.
Does the syndication team invest along side the passive investors?
Yes. The syndication team fully understands and appreciates the power of multifamily real estate investing and are eager to invest along side passive investors in every deal.
Can I use pre-tax retirement funds to invest?
Yes. We accept investments from Self-Directed IRAs (SDIRAs) and other Qualified Retirement Plans (QRPs). Before investing using retirement accounts, it is important to contact your CPA and fully understand the tax implications for each account. Most of our investors prefer the tax benefits of setting up a QRP over an SDIRA to invest passively. CLICK HERE for a free book detailing the benefits of setting up a QRP.
How can I learn more?
We have compiled a wealth of information in our free Essential Guide to Multifamily Investing, CLICK HERE to learn how to take action and generate massive wealth through real estate investing!