What Is Real Estate Syndication?
It Is A Way For A Group Of Investors To Pool Together Their Money To Jointly Purchase A Large Real Estate Investment they Couldn’t Afford To Acquire Individually, And Thereby Sharing The Risk Of Investment. As For Multifamily-Syndication, Investors Jointly Purchase a Multifamily Property. It Is A Much Easier Way To Invest For Most People Because Your Capital Can Be Spread Out Into Multiple Deals, Diverse Your Portfolio And Diverse Risks.
How Syndications Work
The majority of investors cannot afford to pay $10 million for an apartment building. Such deals are made viable by assembling a few dozen partners at $50,000 to $300,000.
The project is sponsored by a general partner, who also finds the contract, secures the funding, and oversees project execution. Typically, the sponsor will make an investment with the limited partners.
It is common to employ a partnership entity, such as an LLC.
Limited partners will be the investors. They do not actively participate in project management; they merely participate by contributing financial support.
The project’s income can be distributed in a variety of ways. The majority of sponsors charge fees for structuring the agreement and serving as the asset manager. Prior to the sponsor beginning to get a share of the income, the limited partners will be paid a preferred return, which is typically in the region of 7-8%. The final sale of the property is divided, under predetermined terms, between the investors and the sponsor, who typically receives 25–30%.
A Growing Opportunity
It is not a new idea for investors to band together to buy a large property. But until recently, only well-connected accredited investors had access to these prospects. The JOBS act was passed in 2012, and the SEC guidelines that followed were put into effect in 2015, making it considerably simpler for investment sponsors to seek money for these kinds of projects. As a result, a wider spectrum of investors can now access these opportunities.
Typical Project
We Find Opportunities
Spend $15 million to buy a 190-unit class B apartment building that is 50 years old.
You Invest As Limited Partner
$3 million of investor capital as down
payment and a $12 million loan.
We Boost Property Values And Net Operating Income
Improve property management and make improvements to the building over time for higher occupancy rates and rents.
You Receive Dividends
Hold the property for 5 years before selling it for $20 million.
Benefits To Invest
Consistent Income
A smart way to supplement your monthly income and Allows the value of an investor's portfolio to rise steadily. The investors get a consistent cash flow and aren't affected by stock market fluctuations.
Removes Hassles Of Single-Owner Investing
We manage the investmments for investors. Investors can profit from passive real estate income without the hassle of either employing a property manager or handle troubling issues on their own: such as tenants, maintenance, mortgage, insurances, improvements, and rent collection.
Participate In Larger Deals
Through crowdfunding model, single-owner investors are no longer limited in the size of the property they can purchase.
Low-Risk
In comparison to sole ownership, multiple investors spread out any related financial risks. Unlike single-family homes, apartment complexes are unaffected by a downturn in the housing market because an apartment complex is priced based on net operating income.
Easier To Finance
Because a multifamily property delivers steady cash flow month after month, a bank is more likely to grant a loan for it than for a single family house. IRA, Roth IRA, or any other rollover retirement fund can also be used to invest in syndicated real estate.
High Returns
In comparison to other investment products such as equities or bonds, multifamily real estate has typically generated one of the highest risk-adjusted returns.
Let our team of experienced members handle your issues.
You can invest in multifamily-syndication with your retirement account.
WHY US
We’re Determined To Provide You With Top Returns Through Investments In Thoroughly Vetted Multifamily Properties.
Our Mission Is To Provide You With Dependable, Simple, Transparent, And Rewarding Real Estate Investments. We Maximize The Capital Value Of Assets While Reducing Investor Risk.
How It Works
We Find Opportunities
GMR manages the process of locating high-quality real estate opportunities.
You Invest As Limited Partner
Invest your money without the hassle to manage the asset yourself.
We Boost Property Values And Net Operating Income
Increase capital value of assets by creating Forced Appreciation.
You Receive Dividends
Congratulations! You get the dividends you earn!
Under the federal securities laws, only persons who are accredited investors may participate in certain securities offerings.
An accredited investor, in the context of a natural person, includes anyone who:
- earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
- has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
For additional investor educational information, see the SEC’s website for individual investors, Investor.gov.
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