1 Red > 4 Greens: Why We Use Monopoly to Explain Apartment Syndication

Summary: In this blog post, we’re diving into how apartment syndication connects with America’s favorite game: Monopoly. You ready?!


 

Have you ever played Monopoly?! We’d bet you have — and the game connects so, so well with our other fave game… AKA apartment syndication 🤗

See, the goal is simple. You want to buy every property you can, right? Once you get a monopoly by owning all properties of one color group, you then improve them with houses and hotels. The more houses and hotels you own the more you cash in when other players land on your properties.

Win, win. #justapartmentsyndicationthings 😂

Basically, the principle is simple 〰️ you want to own as many reds as possible. And, that sounds just like an apartment, doesn’t it? The ultimate strategy for winning the game is to own as many of the red “apartments” as possible.

i.e., the really great multifamily ones‼️

Achieving financial freedom is very similar, too.

The key to “winning” the game is to accumulate as many of those so-called red homes, or, as we’ll call ‘em, units, as possible in order to generate and multiply cash flow, get benefit from appreciation, reduce tax burdens, and have your tenants pay down your mortgage – all while leveraging other people’s time, team and expertise.

Basically, we love a real-life connection, and we want to dive in with ya. 🤟

In this blog, you’ll find:

Here’s the thing: you’re entering the apartment syndication world at a super exciting time. Our job? To guide you as you start collecting alllllll those red homes. 🥳

1 Red > 4 Greens - The Kitti Sisters

So, let’s chat… what exactly is a multifamily apartment?

We get asked a looooooot about all things multifamily apartments (obviously). So, let’s talk: 

When we talk about multifamily apartments, we are not referring to duplex, triplex or quadplex residences. We are talking about large apartment complexes with 65 or more units.

See, these larger apartment complexes have what are called economies of scale, which is a very, very GOOD thing. 🤗 

(Side note: a larger number of units enables us to hire full-time property managers, something that isn’t very cost-effective in single-family homes or apartments with less than 65 units. And, like, none of us are trying to be property managers.)

Investing in the kind of apartment complexes we talk about is actually significantly more stable than investing in smaller multifamily residences, which is something that we can attribute to a few things: to the size itself, to the amount of people living there, and to the long-lasting attributes of the complexes themselves. 

Plus, getting our hands on multifamily apartments requires us to pool investment money — which means that we get to leverage experts and build relationships to access big deals and boost the possibility of really, really big returns.

💥 Boom. The scale AND the multiplier effect is huuuuuuge. 

And, when we (this includes you, of course!) can get our hands on these multifamily units (AKA, red Monopoly pieces), we can all reach the ultimate goal…

to have actual, true financial freedom.

Why apartment syndication is like the red Monopoly pieces

Okay, so we’ve hinted a few times about the connection between Monopoly and apartment syndication, right? And, here’s why 〰️ we think that looking for really interesting or out-of-the-box connection points is really important to making lasting change.

And we want lasting change. Rly, we want you to get rich. Why? Because, as you know, your job or career might not be as secure as we once thought, and that awareness is invaluable. When you can invest in an asset class that builds tremendous wealth — in those red pieces! — you can get rich without that job.

Enter: apartment syndication, our fave version of red pieces.  🤟

See, apartment syndication is an effective way for investors to pool their financial resources to invest in properties and projects much bigger than an individual could afford or manage on their own. Straight to the red pieces, you know?!

For example, let’s talk about one of the apartment complexes we SOLD back in Nov 2021 in Phoenix, Arizona. We purchased this property for $6.9 million dollars (along with our passive investors). Alongside our investors, we put in over $3.7 million as a down payment (no need to leverage)! 

By using both good debt and OPM (i.e., other people’s money), you can dramatically increase your Return on Investment (ROI), and you can even achieve infinite returns.

We here are entrepreneurs and we ❤️ love infinite returns right?! After all, infinite returns get you those red pieces!

We are also the owners of a 192-unit, Class B apartment building in Fort Worth, Texas. The equity invested was over multiple 7-figure after a cou and now that apartment building has continuously produced a monthly cash flow that we use to pay for some of our expenses. 

Amazing right⁉️ That investment — which came from a lot of us — let us and our investors purchase this red piece AND profit off of it to buy more red pieces!

See, unlike with buying a single-family home, multifamily apartment syndication allows you to

be an equity partner of multifamily apartment complexes *without* credit checks or many of the other hassles of buying a single-family home.

Becoming an equity partner thus becomes a simple investment transaction that allows you to grow your money almost effortlessly.

And you get to own loooooots of red pieces if you want ‘em. 🥰

How you can start playing real-life Monopoly

Okay, so…. We’ve talked a lot about why we love the apartment syndication model so much. It allows you to leverage other people AND their experience to get your hands on multiple apartment buildings, and gives you a whole network to fall back on.

Basically, apartment syndication is the best way we know to set up a passive income stream, all while creating enormous tax efficiencies… and enormous room for red pieces.

Related:  5 Things to Do If You Want to Cut Your Tax Bill This Year

And, to make it even BETTER, we are seeing proof that apartment investments have proven to be both recession and pandemic resilient. In our current time of uncertainty that is excellent news!

See, it’s kinda simple… people always need a place to live‼️

A stable safe home is an essential part of life, especially in times of uncertainty. As we mentioned before, in Maslow’s hierarchy of needs, shelter is one of the basic fundamental human needs, on par with 🌬️ air, 🍗🍕🥟 food, and 💧 water.

And, people want to stay in apartments. There are a ton of reasons for this, and multifamily has been a strong asset class during the pandemic. Wondering why?! Well, think about it — financial stability has been kind of hard. When you align that with bank restrictions on single-family homes, it’s been a lot harder and scarier for people to purchase homes… so they stay in apartments.

Enter: apartment syndication, right? Getting in on the ground floor (literally) so you can grow your $$$ no matter the time of year or time of life or time of the world.

Why apartment syndication gets you to your financially free goals

Apartment syndication gives you this really unique viewpoint and ability — where you get to make an initial investment *and* see that return, month to month, through monthly expenses and cash flow.

And, financial freedom requires cash flow. It requires the $$$ you’re bringing in to be less than what’s going out. When you can bring in that income passively?! Boom. BOOM. You’ve made it.

Stocks can’t do that. Savings accounts can’t do that. Apartment syndication can do that. 👊

To put it simply, we love helping build passive income with apartment syndication because it’s an incredibly resilient method. When you underline and highlight that “passive” word, it’s freakin’ icing on the cake.

So, do you want to start collecting big-time red pieces AND monthly cash flow? Let’s chat, friends. Come join us in the Kitti Freedom Club here.

 


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Invest with the Kitti Sisters

Fortified with years of experience, fierce passive investors (we ALWAYS in our own deals), and selected high qualities investment opportunities to help build your long term wealth no matter what stage in life you're on. We will show you the ropes, help you build out a powerful, personalizes strategy, and give you masterful, financial freedom focused on living your lifestyle dreams.

We're Palmy ➕ Nancy Kitti 〰️ The Kitti Sisters

A sister duo team obsessed with all things financial freedom, passive income, and apartment investing + apartment syndication, who turned a $2,000 bank account into a nine-figure empire.  Now, we're sharing with you the behind-the-scenes secrets of our wealth building strategy.

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