Novo Multifamily Group’s Post

If you have been considering acquiring a large multifamily apartment building you have probably thought about SYNDICATION. Simply put, a real estate syndication is a partnership between several investors to jointly purchase a large asset. A syndication is different than a joint venture (another common partnership method), in that some of the investors in a syndication will be passive (capital partner only) and others will be active. Active investors are also called General Partners, where passive investors are Limited Partners. The benefit of the syndication model is that General Partners can leverage capital from Limited Partners to acquire larger deals that might otherwise be limited to the General Partner’s own financial resources. Sounds great, doesn’t it? But wait! There are a few things you should be aware of. Request Your Copy of "5 Secret Tips I Wish I Knew Before My First Multifamily Syndication" now! https://lnkd.in/gSnvQ5XQ Randy Langenderfer

Multifamily Real Estate 101: Multifamily Syndication. 🏢 Ever wonder who owns all of those apartment buildings in your neighborhood, or the bigger ones downtown? 🤷♂️ Chances are, it's probably people just like you! Imagine a bunch of investors (like you 👨👩👦👦) joining forces to buy real estate together. In basic terms, everyone shares a piece of the risk but also gets a corresponding piece of the pie 🥧 (cash distributions, return on investment, tax benefits, etc.). All without the stress of managing the property. Et voila - Multifamily Syndication! Excited to learn more? Follow or DM me, or schedule a one-on-one call (https://lnkd.in/eh4eDbXg). #MultifamilyRealEstate101 #MultifamilySyndication

Multifamily Real Estate 101: Multifamily Syndication. 🏢 Ever wonder who owns all of those apartment buildings in your neighborhood, or the bigger ones downtown? 🤷♂️ Chances are, it's probably people just like you! Imagine a bunch of investors (like you 👨👩👦👦) joining forces to buy real estate together. In basic terms, everyone shares a piece of the risk but also gets a corresponding piece of the pie 🥧 (cash distributions, return on investment, tax benefits, etc.). All without the stress of managing the property. Et voila - Multifamily Syndication! Excited to learn more? Follow or DM me, or schedule a one-on-one call (https://lnkd.in/eE3CZz2s). #MultifamilyRealEstate101 #MultifamilySyndication

Why do I invest in large multifamily apartments in the format of syndication? Real estate syndication is a partnership model where multiple investors pool their resources to collectively invest in larger real estate projects that would be difficult to finance individually. Typically, this structure involves a syndicator or sponsor identifying, acquiring, and managing the property, while passive investors provide the bulk of the capital. The syndicator handles the day-to-day operations and strategic decisions, earning a portion of the profits and fees for their expertise and effort. Investors benefit from the income and appreciation of the property without the responsibilities of active management, making it an attractive option for busy professionals seeking passive income streams. If you would like to benefit from the various advantages of real estate syndication without the headache of day-to-day management, get on my calendar, and let's talk. https://lnkd.in/dn3FfgfH

In a previous video, I explained that multifamily syndication is an active business and not a scaled-up version of owning rental properties. It doesn’t provide steady cash flow and instead functions like a long term flip.🏢💸🤸🏾♂️ With that being said, multifamily investors often need to have another source of income until their business scales up enough for their portfolio to support them.💰📈 Please share with someone who needs to hear this and comment your thoughts.🗣️💬 #apartmentinvesting #commercialrealestate #multifamily #multifamilyrealestate #multifamilyinvesting

Investing in Multifamily Syndications Could Yield Double the Returns of Single-Family Properties—and 𝗛𝗲𝗿𝗲’𝘀 𝗪𝗵𝘆. Multifamily properties offer significant advantages over single-family homes: Economies of Scale: The larger the property, the more cost-effective it becomes per unit. Consistent Demand: Multifamily units often experience steady rental demand, providing reliable cash flow. Lower Per-Unit Risk: The risk is spread across multiple units, making it less vulnerable to vacancy issues. Syndication lets you tap into these benefits without the headache of managing tenants or properties directly, making it a smarter, more scalable approach to real estate investing. Think multifamily investing is out of reach? Let’s discuss how syndication can make it possible for you.

I can't even count the number of times I've told someone that I'm investing in multifamily syndications and was told to "be careful," followed by a horror story of them losing their own money or a close friend losing money in a multifamily syndication. While investing in multifamily syndications can be a great wealth-building tool, not every deal or sponsor is created equal. You can still make a smart investment in the industry with the right knowledge and knowing what to look out for. Here's what to watch out for: 1️⃣ Lack of Transparency If the sponsor or the individual pitching the deal to you can’t clearly explain the deal, their track record, or their fees—run! A trustworthy partner provides detailed financials, a clear business plan, and open communication. 2️⃣ Unrealistic Projections Promising sky-high returns? 🚩 Be cautious. Reliable deals use conservative assumptions based on market trends, not wishful thinking. Look for realistic rent growth and expense estimates and be sure to do a bit of your own research. 3️⃣ No Skin in the Game Does the sponsor have their own money invested? If not, that’s a warning sign. A sponsor with their own capital on the line is more likely to act in the investors’ best interest. Have you spotted any red flags in real estate deals? Let’s talk about it below! 👇

What is the experience of the syndicator with whom you are thinking about investing?

Key Question to Ask a Multifamily Syndicator How Many Multifamily Properties Have You Syndicated, and What Were Your Responsibilities in Each? When deciding whether or not to invest with a multifamily syndicator, one of the most important factors is their experience. But it’s not just about the number of deals they’ve been involved in—it’s about the scope of their responsibilities in each project. Now, most syndicators are actually a team, with several people doing a variety of tasks. So, tweak the question to include the experience of the team members or the team as a whole. Why This Matters: A syndicator’s role in past syndications tells you whether they have hands-on experience in sourcing deals, managing properties, and ensuring returns for investors. Experience handling these complexities can differentiate between a well-managed project and one that struggles to deliver. Whether an individual or a team, owning an apartment complex is like a white water rafting picture -- exciting and fast-moving at times. What to Look For: Look for syndicators who have been deeply involved in critical areas like: - Deal sourcing - Property management oversight - Investor relations - Managing financial performance A syndicator or team with broad, hands-on experience is more likely to be able to navigate the challenges that arise in any investment. What other questions would you ask before investing in a syndication? #RealEstateInvesting #MultifamilySyndication #InvestorEducation #PassiveIncome #DueDiligence

How to grow wealth with real estate investing without being a landlord I have a friend that tried to get into real estate investing as a landlord and ended up with: - Tenants who never paid rent - Constant repairs and maintenance to properties - Headaches and stress But, there's another way. My other friend is killing it with real estate investing and doesn't own a single rental property. He invests in Multifamily Syndication deals as a Limited Partner. Multifamily Syndications are like mutual funds that invest in real estate. Benefits of investing in Multifamily Syndication: - No need to deal with tenants - No need to worry about repairs and maintenance - Dividend payouts You'll also gain exposure to more properties than you would buying individual properties. And, you can get started with as little as $25,000. So, if you want in on the real estate game with less headache and less stress, consider Multifamily Syndication. #investingtips #lifebydesign #multifamilyinvestors #investing101