What is multifamily syndication? Apartment complex investing for accredited investors

What is multifamily syndication? Apartment complex investing for accredited investors

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Publish Date:
February 20, 2023
Category:
MultiFamily Investing
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Learn more about multifamily syndication, https://capital.thebamcompanies.com/2021/09/multifamily-syndication-investing/

For those who want to avoid the volatility of the stock market, real estate can be a great alternative. It lets investors take a more passive role in growing their capital.

Rental property investing is a good source of additional monthly income. It also allows for a slow and steady appreciation in the value of an investor’s portfolio. Regarding residential real estate investing, the two main property types are single-family and multifamily.
Single-family properties have only one available unit to rent, while multifamily properties have more than one rentable space—these are most commonly apartment complexes and duplexes.For example, multifamily properties are more expensive but easier to finance.A bank is more likely to approve a loan for a multifamily property than the average home because it generates a consistent cash flow every month.It is, therefore a less risky investment for lending institutions.But since you are looking fora more passive investment,multifamily syndication is the best way to approach real estate.
A multifamily syndication is a type of real estate investment wherein multiple
investors pool their money in order to purchase an asset. A sponsor locates
the deal and manages the investment once the deal has closed. This sponsor serves as the
general partner who coordinates the transaction throughout the process.[2]

Although any
type of real estate property can be used for a syndication deal, multifamily syndication is very


popular because it is a low-risk investment. Not to mention they also provide consistent income.
In exchange for equity in the multifamily property, passive investors provide some of the upfront
capital required. Syndication is also known as crowdfunding for real estate. Sponsors are
also known as syndicators. They can be individuals or companies who take charge of the deal.
Sponsors, like BAM Capital, look for a deal, acquire the property, and manage the real estate.
These syndicators have a ton of real estate experience. They have a deep understanding of due
diligence for potential deals.


Did you miss our previous article...
https://trendinginrealestate.com/multifamily-investing/multifamily-investing-for-beginners-where-to-start