FAQ’S

How does multifamily syndication work?

Real estate syndication is a partnership between several investors. The investors combine their capital and resources to purchase a property that they wouldn’t be able to purchase individually.

Who owns the property in a syndication?

The property is typically owned by the legal entity, such as a limited partnership (LP) or limited liability company (LLC), that is created specifically for that investment. The investors in the syndication, who contribute capital to the project, become owners of the legal entity and therefore own a share of the property.

What is the average annual return for apartment syndication?

Though it varies depending on the company, syndications typically last three to five years and anywhere between 3.5% to 7% per year in property rental income. This is referred to as your cash-on-cash return and is distributed to passive investors as monthly, or quarterly distributions.

How long does the average apartment syndication last?

Typically, apartment syndications have a hold time of 3-5 years, meaning whatever money or resources you decide to contribute to a particular building or complex within the syndication cannot be reclaimed or sold until the end of this hold time.

What is the average apartment syndication total return?
The total projected return for the investor once the asset is sold is 80-100% over 3-5 years. This includes cash-on-cash distributions. Investors will receive the return of their initial investment.
What are the tax benefits in vesting in Multifamily?
Depreciation
Cost segregation
Bonus depreciation
Accelerated depreciation.
Taxed at capital gain rates.
Always check with your professional tax advisor.
How does the multifamily investor make money?
Tax savings though depreciation
Cash flow
Appreciation
Refinancing
Liquidation of the asset
Can I use an IRA to invest in multifamily?
Yes, by using a self-directed IRA.
How much money do you need to invest in a real estate syndication?
The minimum investment requirement in real estate syndication varies from sponsor to sponsor and deal to deal. But as a general idea, most real estate syndication has a minimum investment requirement of anywhere from $50,000 to 100,000. ​