How to Invest in a Multifamily Syndication?

There are many different investment vehicles that one can choose to start their journey to build wealth.

One of the best options out there for long-term generational growth is through real estate investment.

This can be difficult for those starting out on their own due to the high upfront costs, and the requirements needed to obtain a commercial loan. Apartments are expensive, and for good reason. Yet that doesn’t mean you need to wait to get in on the action.

Multifamily Syndication can jumpstart your financial freedom.

What is it all about?

A Multifamily Syndication is a form of private investment done through an intermediary investor, or deal Sponsor. The sponsor works to gather all the necessary funding, documentation, and legal paperwork to ensure that the money is secured and ready to buy an investment property. Then it's a matter of purchasing larger investment properties such as an apartment building and earning returns from either the rental or sale of the property in the future.

If the property is in turnkey condition, then it’s about immediately working to generate passive income from the rentals and passing down those investments through the syndication. There are also investment opportunities where the property needs to be completely updated which could take a few years in some cases. These are known as value-add deals, and the main focus for TRC.

Either way, it's important to note that an investment type such as a multifamily syndication is a long-term investment choice. You will have your funds locked in for several years in most cases. If the plan is to refurbish and sell the property, then it will also take that time to see those significant returns.

Why such a long term?

Real estate is a preferred investment because it's reliable. It does take time to grow but it's one of the leading factors that help to grow generational wealth within families. It may seem like a daunting investment at the start, but multifamily syndication gives everyone a chance to be able to access real estate as an investment, and obtain a portion of a much larger piece of real estate early on in their investment portfolio.

Who can participate?

Although there's no excessive red tape when it comes to these types of investments, it's recommended that you are either an accredited or sophisticated investor.

Accredited means an income of $200,000 per year ($300,000 with a spouse) and a $1M or greater net worth in investments excluding your primary home.

Sophisticated, as defined by the SEC, have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.

This is due to the sophistication of how real estate investments are done and need to be handled to ensure maximum return.

A multifamily syndication is unique because it's families combining their assets and working together with other families to build up this generational wealth.

The key here is about getting a complete understanding of how the investment works, as one should with any investment, and to understand the costs and potential risks.

We look forward to hearing from you and feel free to reach out to us here.