005: The Quickstart Guide to Apartment Investing & Apartment Syndication

APPLE PODCASTS | SPOTIFY

Apartment syndication is a real estate investment structure where multiple investors pool their capital to collectively purchase, renovate, and profit from large apartment buildings. A general partner (GP) — also called a syndicator or sponsor — finds the deal, manages the business plan, and oversees operations, while limited partners (LPs) invest passively, earning returns without any landlord responsibilities. At The Kitti Sisters, we’ve used apartment syndication to acquire over $400M in multifamily assets across Arizona, Texas, Georgia, and Northwest Arkansas — and we’ve helped our investors generate $93M+ in tax savings along the way.

Whether you’re brand new to apartment syndication or you’ve been exploring from the sidelines, this guide breaks down exactly how it works, who’s involved, and why it’s become one of the most powerful vehicles for building passive income and long-term wealth.

What Is Apartment Syndication and How Does It Work?

Think of it like assembling the Avengers — except instead of saving the world, you’re building wealth together. In apartment syndication, you pool your money with other investors to purchase an investment property under an apartment syndication sponsor. You’re joining forces with other investors to purchase an apartment — and that’s all you have to do.

You’re not signing up to be a landlord or a property manager, and you don’t need to worry about broken dishwashers or rowdy tenants. That kind of work is left up to your apartment syndication sponsors, also called the general partners or syndicators.

With apartment syndication, the investors themselves really just have one job — wanna take a stab at what it is? You guessed it, to invest money. That’s what makes this a truly passive investment.

Who Are the Key Players in an Apartment Syndication Deal?

In the apartment syndication and apartment investing world, there are two main roles that have to be filled: the general partner (GP) and the limited partner (LP). 😎😎

The General Partner (GP) / Syndicator / Sponsor

The syndicator can be one person, but it’s usually a company comprised of apartment investors that have high-level real estate experience and education. The syndicator’s job is to scout out investment opportunities, find apartment properties, and conduct market research.

The apartment syndicator is also responsible for procuring investors. (AKA, financially independent people like you. Wink, wink.)

The syndicator doesn’t put as much capital into the property purchase itself, but they’re in charge of plenty on their own. They handle things like:

• Finding the property and securing it through contracts
• Creating a business plan
• Raising the capital needed to purchase the property
• Managing the property renovation and operations
• Communicating with investors throughout the hold period

The Limited Partner (LP) / Passive Investor

This is you! As a limited partner, your main job is to invest capital and then sit back while the GP does the heavy lifting. You receive regular distributions (typically quarterly) and a share of the profits when the property is sold or refinanced. No landlord duties. No midnight maintenance calls. Just passive income hitting your account. 💰

What Are the Financial Benefits of Apartment Syndication?

Here’s why we’re so obsessed with apartment syndication — the financial “friends with benefits” are REAL: 😘😘

Above-average returns. Let’s take one of our apartments in Phoenix, AZ as an example. We purchased this 76-unit property in August 2018 and were in escrow to close it by November 2021 — meaning that our investors got over a 100% return in just 15 months. 100%! There is no other kind of investing that consistently gets you returns like this when you go all in.

Risk-adjusted wealth creation and preservation. Apartment syndication allows you to hedge against inflation. Currently, inflation rates are at an all-time high (yes, your daily coffee purchase has increased) but your multifamily real estate values and rental income tend to rise right along with it — protecting your purchasing power.

Extraordinary tax benefits. Due to what we call “bonus depreciation,” your investment income is taxed at a much lower rate than other investments. And, you might even be able to show off a taxable loss that can be used to offset your other income. Our investors have collectively saved over $93M in taxes using these strategies.

True passive income. Unlike owning rental properties directly, you don’t manage anything. No tenants, no toilets, no 2 AM phone calls. As passive investors, you receive above-average returns while living your best life. 💫

How Do You Get Started as a Passive Investor in Apartment Syndication?

Getting started with apartment syndication doesn’t require selling a kidney — we promise. 😂 Here are the key steps:

Step 1: Define your passive income number. First, figure out the amount of passive income that you want to hit. The amount that will allow you breathing room, the number that will make you feel refreshed and not anxious every morning. PSSST we even have a free tool to determine what that magic number is for you.

Step 2: Find the right team. ☺️☺️ This is the most important, crucial one in your entire investment process — because if you don’t have the right team, you may not get the fantastic returns you’re expecting. The right expert team is one that you really get to know and trust, and it’s a team that has the expertise you need and your skillset will fit in with theirs.

Step 3: Identify your investment market. You really have to do your due diligence when it comes to where you’ll invest and compare what states have what laws and if they’ll work for you. For example, landlord-friendly states like Texas, Arizona, and Georgia tend to favor property owners — which is exactly what you want as a syndication investor.

Step 4: Understand the numbers. Do your homework! You need to be able to plug in numbers and verify the calculations done by the sponsorship team so you can invest confidently. Yes, there is some math involved but don’t let that scare you. You know more than you realize, and at the end of the day, we’re just trying to get that addition and multiplication into your bank account.

Step 5: Fund the deal. This is the “deal or no deal” moment. You’ll have to bring in the cash to begin the investment. Decide where that’s coming from, whether it’s through cash in the bank, from your retirement accounts, or something else.

Why The Kitti Sisters?

Other than the fact that we are #squadgoals, for us, our mission is simple: we are the solution for giving you peace. We know all too well about that 2 am night sweats feeling. How will you retire? Are you making enough to support your kids’ future? How do you stop living paycheck to paycheck? That’s why we are so passionate about this work. We want to make sure that no one has to feel that worry.

We’ve both seen our lives drastically change for the better because of apartment syndication and apartment investing, and we’re here to get you up to speed on every single detail, because investing with us may just be the best thing you ever do for yourself.

Frequently Asked Questions About Apartment Syndication

What is apartment syndication?
Apartment syndication is a real estate investment structure where multiple investors pool their capital to collectively purchase, renovate, and profit from apartment buildings. A general partner (GP) manages the deal while limited partners (LPs) invest passively and receive returns without landlord responsibilities.

How much money do you need to invest in an apartment syndication?
Most apartment syndication deals have a minimum investment between $50,000 and $100,000, though some may accept lower amounts. The capital can come from savings, self-directed IRAs, or other investment accounts.

What returns can you expect from apartment syndication?
Returns vary by deal, but passive investors in apartment syndications typically target annual cash-on-cash returns of 6–10%, with total returns (including profit at sale) often reaching 60–100%+ over a 3–7 year hold period. At The Kitti Sisters, we’ve delivered over 100% returns to investors in as little as 15 months on certain deals.

Is apartment syndication passive?
Yes. As a limited partner (LP), you invest your capital and the general partner handles everything — from property acquisition and renovation to tenant management and eventual sale. You receive regular distributions without any active involvement.

What is the difference between a GP and LP in apartment syndication?
The General Partner (GP), also called the syndicator or sponsor, finds the deal, raises capital, and manages the investment. The Limited Partner (LP) is the passive investor who contributes capital and receives returns without day-to-day responsibilities.