Heard the term “apartment syndication” but have no idea what it means? Here’s everything you need to know about making passive income through multifamily apartment investing.
Over here at The Kitti Sisters, real estate investing is our jam, so is the actual “jam” too 🙃🙃. We ❤️ PB&J!
More specifically, though — multifamily apartment syndication is our thing.
See, we haven’t been in real estate our entire lives. Actually, both of us worked in fashion for years and years before realizing that diversifying income streams was the way to go. And, once we found multifamily apartment syndication, everything changed for us… and for our income.
(Hint: it soared.)
And, here’s the thing: apartment syndication is a hiiiiighly underrated form of real estate investing. While most people tend to think of real estate investing as the requirement to put forth mountains of capital and buy a zillion homes; that’s not how you have to do it.
Here’s what you need to know.
WAIT… WHAT EVEN *IS* APARTMENT SYNDICATION?
To put it simply, apartment syndication is when a group of people (i.e., investors) pool their money together to purchase an apartment building.
There is always a partner — usually called the General Partner (GP) — that locates the property, manages the deal, and secures investment. The other investors, usually called Limited Partners (LP), are investing on a passive basis. Passive investors don’t need to get at all involved in the business of the apartment. But still benefit from cash flow and from the eventual sale of the property.
Multifamily apartment syndication is SUPER powerful for a ton of reasons:
From giving investors the opportunity to invest in commercial properties (without a massive amount of capital)…
All the way to additional profitable opportunities and the choice to invest in a piece of real estate they actually want to invest in.
Also, multifamily apartment syndication gives you big-time tax benefits.
Basically, it’s a no-brainer. 😜
HOW MULTIFAMILY APARTMENT SYNDICATION MAKES YOU MONEY?
As a Limited Partner in a multifamily apartment syndication deal, you’re making money without really trying.
That’s the main reason why we ❤️ love it so much. First up, the property should be profitable each month (via cash flow from rent, fees, etc.). The limited partners typically receive the cash flow distribution on a quarterly basis, which is a completely passive income stream that helps build on the investment return.
Next up comes the exit strategy — also known as the property sale itself. Different syndication deals have different exit strategies and timelines, but typically the sale of the property is always the eventual goal, giving the limited partner shareholders a split of the profit.
And if you know anything about the Kitti Sisters we all are about the velocity of capital here, meaning WEALTH HAS THE NEED FOR SPEED, so does money going to your pocket! 😚😚…
READY TO START INVESTING IN MULTIFAMILY APARTMENT SYNDICATION?
Well, guess what? You’re in the right place to do so! We’d love to chat with you about investing with us — because, let’s be real: the goal for all of us is to reach financial freedom, and we want as many people to join us as possible. 📝 Fill out our short questionnaire and then book a strategy call with us here.