The pooling of money from multiple investors who form a partnership to purchase real estate such as a commercial multifamily building. Typically for apartments, a syndication is a partnership between general partners and limited partners.

General partner is an owner in a partnership who has unlimited liability. For real estate syndications, the general partner organizes the syndication, secures financing and manages the property. The general partner is also referred to as the sponsor or operator.

A partner whose liability is limited to their share of ownership. In apartment syndications, the limited partner is a “passive investor” who funds a portion of the equity investment.

Accredited and unaccredited investors are allowed to invest. An accredited investor is someone who has an annual income of $200,000 individually or $300,000 jointly with a spouse or a net worth of at least $1 million, not including your primary residence. Unaccredited investors or sophisticated investor is someone with sufficient investing experience or education to weigh the risks and benefits adequately of an investment. A sophisticated investor must have a pre-existing relationship with the syndicator/sponsor.

The frequency varies based on the project; however, we typically make quarterly cash flow distributions. The first distribution will be paid once the property is stabilized and has positive cashflow.

Typically, $50,000, but could be as low as $25,000 depending on the deal.

Typically 5 – 7 years. Depending on the market conditions and return projections, it could be shorter or longer.

Every investment has risks involved. There are no guarantees that you will lose or make money with any investment. However, multifamily has proven to be one of the most stable, lower risk investments compared to other asset classes and less volatile than the stock market. In addition, we always invest our own money into every deal and conservatively underwrite to minimize the risk.