When considering investing in Real Estate, could Apartment Investing check all the right boxes for you?
You’re eager to put your hard-earned capital to work in a safe investment that provides the highest returns with the least amount of personal time or effort. You’ve made it a priority to build your financial future so you can live life on your own terms and focus on the things–and people–that matter to you most.
If this sounds like you, I’ve been in your shoes! Through years of exploring more traditional forms of financial investing, real estate stood out as a smart, stable and often simple strategy where you could control the outcome–and the returns. But with so many real estate asset classes to consider, i.e., single family homes, flips, the BRRRR method, REITs, etc., I needed to go deeper in my financial education.
I embarked on a course of learning through industry leaders experienced in a variety of REI asset classes. I invested personally in a variety of residential and commercial projects and evaluated the ROI of my time and capital against risk and reward. Over time, apartment syndications rose to the top of my list as the most relatable asset class to invest in with the most predictable and profitable results. I’ve detailed my research on the pros and cons of different real estate asset classes in our 5 Time Tested Strategies for Investing in Real Estate white paper.
Through my experiences I developed a clear affinity for the passive nature and solid, timely returns that multi-family syndications deliver. And the combination of improving a property to benefit an entire community, while at the same time driving up the value to the advantage of my investments, really resonated with me.
What is Multi-Family Apartment Syndication & Why Do We Love the ROI?
A ‘syndication’ is simply a pooling of resources by multiple investors to invest in a real estate asset, in this case a large multi-family apartment complex. We break down the basics below:
- In an apartment syndication, the general partners, or syndication team, partner with a group of passive investors, or limited partners in the acquisition of large apartment complexes.
- The syndication team identifies, analyzes, and negotiates the purchase of an apartment building of 100+ units or more where they can force appreciation and add long-term value through capital improvements and by lowering the operating expenses of the complex.
- The syndication deal’s main sponsor has a team in place to execute the business plan from acquisition and financing through property enhancements, asset management and eventual sale of the property, all while providing regular updates to the limited partner passive investors
- In addition to being a wholly passive investment, the key benefits of investing in large real estate syndications are the high overall returns, paid monthly or quarterly as cash flow distribution checks and at the time of disposition of the asset (typically 5-7 years).
- This diversified investment has less risk and less work than those associated with a single-tenant commercial or small-scale residential property where vacancies, maintenance, and other unexpected expenses can sabotage a year’s worth or more of profit.
- And then there are the impressive tax deferred benefits that include accelerated depreciation and write-offs that substantially lower any taxes paid on the income earned until after the property is sold.
- Lastly, investing alongside a pool of other investors in an LLC allows you to enjoy great returns without exposing yourself to personal liability or credit risk.
Your return on investment comes not just in the form of monthly cash distributions, the deferred tax benefits, or at the time of sale, but also in knowing that your capital is hard at work every day as you’re focusing on your favorite activities, friends and family, or designing the life you truly want to live.
If you work full-time, live in a high-priced market or just don’t want to deal with the hands-on management of your own real estate investments, you may just find the consistent, fruitful and passive returns of multi-family syndications to be a good fit for you, too.
Are you ready to discover the easiest and most reliable way to put your money to work for you and start earning passive income? If the answer is yes, we’re here to help you on your journey.
About the Author:
Melinda is the Founder and CEO of Echo Investment Partners and resides in Los Angeles, CA. As a commercial retail investor, multi-family investor and syndicator, she founded Echo Investment Partners in 2015. As a General and Limited Partner she has helped to provide funds to purchase over 2,500 apartment units valued at over $280M now under management. With the goal of helping accredited and professional investors develop passive streams of income through real estate, Melinda’s focus is on the stable, significant and timely returns that large multi-family investments deliver.
On a mission to share the benefits of passive investing through multi-family real estate.