If you're into the details of a syndication, this page is for you. Below you'll find the nitty gritty details of how the process works and your role.
We work with partners to find great deals, negotiate the purchase, and finance the properties.
We look for growing markets in terms of population, jobs, income, home values, and rents. As they say, "a rising tide lifts all boats," which is why a growing market is so important.
We look for areas in which properties are valued for less relative to their income than other areas, i.e., their cash-on-cash returns are higher. One good indication of yield is the cap rates in those areas; the higher, the better in terms of potential cash flow.
A timeless - tried and true - asset class that provides a basic essential human need and is still in demand during market ups and downs. There are powerful macro factors that currently make apartments an exceptional investment with plenty of room for more profits.
First and foremost, millennials aren't buying homes at the expected rates. Meanwhile, retiring baby boomers are moving to urban apartments, creating additional rental market demand. The overall market is shifting to a rental environment, with renter rates significantly increasing over the last 12 years, as shown in the following graph.
Source: FRED Economic Data
Furthermore, the supply of new apartments is not keeping up with demand in most markets, and this is expected to continue for many years.
Source: FRED Economic Data
According to the National Multifamily Housing Council and the National Apartment Assoc., the US will need to build more than 4.6 million new apartment homes by 2030. It will take an average of 325,000 new apartment homes every year to meet that demand, but only 244,000 apartments were built from 2012 through 2016.
Part of that demand comes from:
We believe the multifamily housing market is resilient and has a very bright future. Everyone needs a physical place to live, and for both lifestyle and financial reasons, many Americans choose to rent an apartment instead of owning and maintaining a home.
Investors become partners in the ownership of the actual property.
Does it align with your financial goals?
Who is the deal sponsor (aka General Partner)?
Is sponsor's pitch and offering memorandum well researched?
Is it for accredited or non-accredited investors?
Is the property in a strong metro and neighborhood?
What is the risk vs. gain?
What class is the property?
Is it a value-add project?
What are the return metrics - cash-on-cash return (CoC) and average annual return (AAR)?
What are the tax considerations?
Is the General Partner planning on refinancing at some point?
Whare the General Partner's fees and splits?
What do cash flow distributions start? How frequently are they?
Do the subscription documents align with the deal?
Your money is held by a third party (called a custodian), but now the direction of investment is made by you. You can still invest in index funds, but you can also invest in partnerships, buy precious metals, buy real estate, and even lend money. There are some rules to watch out for - like you can't be directly compensated from the investment (so you can't buy a property that you self-manage), and you can't touch the money until you retire - but you still get the same tax benefit of not paying income tax each year.
If you have an IRA or 401(k) from a previous employer, rolling over to an SDIRA could be a great option.
If your mortgage balance is less than 50 percent of your home's value, there is potential to unlock some of that equity with a new mortgage, second mortgage, or HELOC.
If you owned your home, or a vacation home, for more than 15 years, chances are you're sitting on some equity that can be used to grow your wealth.
Inheritance: A bittersweet occurrence, but perhaps we can help this final gift from your loved one better the life of your family.
Savings: Are you a well-disciplined saver but frustrated that you're not keeping up with inflation? Multifamily real estate provides above-average returns while hedging against inflation.
We oversee the property managers, who collect the rent from tenants and manage the property.
Acquire the asset: After finding a property and performing due diligence, money is raised from investors.
Refinance: After the value-add renovations are complete, the property will appraise at a higher value. A refinance is done to pull out some of the additional equity, and you can get a significant portion of your original capital returned early.
Hold: Hold the asset whole, collecting cash flow. We hire experienced property managers to manage the property and keep it running at peak efficiency. Investors are provided with quarterly performance reports and cash flow distributions from the profits. A common holding period for syndications is 5 years.
Sell: The renovations are complete, monthly revenues have increased, and the asset has appreciated in value. By returning your capital, it can be deployed into a new value add opportunity.
We do all the work while you sit back, relax and enjoy the benefits of passive income.
The middle class, upper class, and ultra-rich invest very differently. Edward Wolff's research shows how each class allocates their wealth, with exact percentages showing where they put their money.
The largest allocation for the ultra-rich, at 49%, is only 7.9% of the wealth allocated for the middle class.
Multifamily commercial real estate is an incredibly smart investment that gives you passive, tax-advantaged cash flow with limited exposure to market volatility and above-average returns hedged against inflation.
We make it simple for busy professionals to participate and accelerate their wealth and build generational wealth. The next step is to set up a brief call with us.
Step one is to schedule a 30-minute call. We'll review your investment goals and make sure a partnership is the right fit for both parties. We can't wait to build a relationship with you!Schedule a Brief Call