As a multifamily apartment syndication company, our job is to do all the heavy lifting on behalf of our investors and deliver a sizable return on investment. Our IP’s (investor partners) are knowledgeable, but do not have the time or desire to be active investors themselves. In this series, I’ll showcase five ways passive investors can benefit from investing in multifamily apartment real estate.
Fast & Efficient
When you are passively investing in a multifamily apartment syndication, typically you are presented with a fully vetted investment opportunity. In best practice, the opportunity has already been put through a rigorous evaluation process and has proven to be a potentially lucrative investment opportunity. Now you don’t have to actively look for a deal that makes sense, it’s done for you. Of course, it is advised that you do your own analysis on the property, the sponsors, and the deal terms to either confirm or deny if the opportunity is a fit for you. If it is, all that’s left is to sign legal paperwork and transfer funds. After which, you should be able to kick back, relax, and enjoy your monthly passive income and resale profits.
Specialized Knowledge Workers
As a multifamily apartment syndication company, we’ve devoted our minds to learning and understanding the ins and outs of the markets we invest in and the industry we are a part of. As a passive investor, leveraging our specialized knowledge and capabilities to your advantage can save you time, help you achieve your financial goals, and mitigate investment risk. Instead of researching hundreds of multifamily apartment investment opportunities on your own, having a trusted sponsor/partner with the ability to identify only the best of the best opportunities will fast track your investing success
This benefit is often overlooked and rarely considered, yet it is instrumental in your success as a passive investor. Passively investing allows individuals investors to avoid an application process in order to invest. There is no bank, lender, or third-party financial institution application approval process required. However, the approval process and documentation requirements for debt financing in purchasing multifamily apartments needed and is both long and arduous. Passive investors side step this tedious task as syndicators/sponsors do all the financing work for you. The net worth requirements, risk capital, reserve capital, fees, financial statements, and loan guarantees are all handled with you lifting a finger.
Pass Through Tax
For our company, a multifamily apartment deal is an equity structured investment. Our passive investors are afforded tax deferred cash returns which allow them to keep more of their earned income. Unlike interest payments or stocks dividends form REITs, that can be taxed at your highest bracket, your share of depreciation expense works to offset your income due to the pass-through benefits of real estate ownership.
No Three T’s
As a passive investor in a multifamily apartment syndication you are not subjected to the day-to-day asset management involving tenants, toilets and trash. You have no direct responsibility for managing the asset. There’s no rent for you to collect, no maintenance calls to answer, and no renovations to personally undertake. All that is required of a passive investor in a multifamily apartment syndication is your investment of funds. In return for your investment, you’ll receive passive income and resale profits – in other words, an income stream that is somewhat predictable and automated.
Are you interested in learning more about creating turnkey passive income and generational wealth through multifamily apartment investing? Visit syndicationcapital.net for free information, guides and resources that will help you get started.