The art of teaming up to acquire real estate isn’t new, but surprisingly enough, not many people know what it is or how it works. In this blog, I will focus on a two types of passive real estate investment known as the Real Estate Syndication and Apartment Syndication.

What is a Real Estate Syndication?
Real Estate Syndication is a way for investors to pool their financial and intellectual resources to invest in properties and projects much bigger than they could afford or manage on their own. And, offering a fixed rate of return, it is a safe and secure investment.

Real Estate Syndications are a much easier way for most people to invest in real estate because it allows investors to pool their funds together in order to buy a larger and more stable asset (or assets) than any of them could have on their own.

In the past, only the wealthiest and most connected individuals could participate in real estate syndications. After all, these syndications would usually invest multi-millions in commercial real estate properties around the country. Today this opportunity is available to anyone who is a qualified investor. We’ll get into the details of who is a qualified investor later on in this blog.

To sum up, a Real Estate Syndication is a group of two or more investors coming together for the common goal of raising capital to purchase real estate or build a new property. The advantage of pooling your money is that you can invest in a much bigger, more lucrative deal than you could otherwise afford as an individual investor. Unlike a Real Estate Investment Trust, the asset is already identified in a syndication, and the investors raise money for that specific opportunity.

Apartment Syndication
Simply put, an apartment syndication is the pooling of money from numerous investors that will be used to buy an apartment building and execute the project’s business plan.

Typically, an apartment syndication is best used when buying large apartment buildings or communities that would be difficult or impossible for the parties involved to purchase and handle individually, which allows companies to pool their resources and share risks and returns.

Investing through apartment syndication frequently involves partial investments from multiple limited partners. In these investments, a limited partner is a passive investor, with the exception of tax management. Limited partners are not involved in any management area of a syndication investment.

A lot of people would love to benefit from owning an appreciating asset, like an apartment complex, that provides cash flow and a fixed rate of return. However, very few people have the ability (time, expertise, money, etc.) to purchase a big apartment complex on their own. This is why joining a real estate investment group makes so much sense.

Who is a Qualified Investor?
Limited partner investors in real estate syndication are people just like you who want to invest in real estate without the hassles of being a landlord. These passive, limited partner investors and the capital they commit to the project are the most important part of any syndication.

Before investing in real estate syndications, there are specific eligibility requirements that investors must meet. To be an eligible limited partner for a real estate syndication, or you must be an accredited investor.

There are two eligibility requirements for being a qualified, or accredited investor:

  • An accredited investor must have a net worth, or joint net worth with the person’s spouse exceeding $1M, not including the value of the primary residence.
  • The investor must have an annual income of $200,000 in each of the two most recent years, or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income in the current year.

To be a qualified investor, you must understand apartment syndication and the process of the transaction from beginning and end. As well the overall general financial and real estate investing risk.

That’s it! If you meet these criteria then you qualify to be an investor in real estate syndication.

Is Syndication a Good Investment Decision?
Syndication allows you to diversify your portfolio as you’re only investing a small sum at a time. Furthermore, as an investor, syndication is one of the most passive investment ideas that require little effort upfront for a killer return on investment.

Apartment syndication is a way for you to get access to institutional grade investments, investments that used to only be available to the largest of institutional investors. So, yes, buying, selling, and owning apartments via real estate syndication can be a profitable business venture.

Clearly, I believe that commercial real estate syndications offer the best investment opportunity on the planet, for many reasons. Hopefully you agree that I’ve made my case.

In Conclusion
Black Girls Buy Houses is currently putting together a limited partner investor group for an apartment syndication deal. This project is not just a great investment opportunity with a fixed rate return, but also helps address the shortage of low income housing in America. And, compared to the stock market, this is safe and secure investing.

Whether you’re new to investing or a seasoned investor who wants to take their real estate investing to the next level let’s connect so I can tell you about this opportunity and maybe you’ll join or group. Schedule a direct call with me to learn more!

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