Understanding Multifamily Syndication
Acquiring a multifamily asset is a big endeavor- we are talking sometimes dozens of doors (units/homes) in one purchase! To be successful, many people need to come together and work as the ultimate team.
The phrase “there is no I in team” couldn’t be more fitting for a multifamily acquisition. One of the ways to bring a team together is through a syndication. A syndication allows for the pooling of resources from different people. Some will bring experience and knowledge and others will bring the funds. General partners in a syndication will take care of putting the deal together by finding the multifamily asset, coordinating the transaction, securing financing, and managing the property. The limited partners (the passive investors) will provide the capital that will help close the deal.
Limited partners do not have to worry about putting in time or energy into the acquisition of the property. There is no need to worry about locating tenants or the day-to-day operations of managing the asset. The best part of investing as a passive investor (limited partner) is that multifamily investments are historically one of the safest types of real estate investments and investors will enjoy cash flow and the asset’s appreciation and equity.