InvestmentsPassive InvestingReal Estate

6 Big Reasons Why You Should Invest in Multifamily Syndication Now

You want to invest in real estate but don’t really know what the next steps are?

Tried investing in rental houses and are now looking for other ways to generate income without working the headaches?

Read on to learn the amazing benefits of investing passively in multifamily syndication deals. 

MULTIFAMILY SYNDICATION: A VERY DIFFERENT EXPERIENCE, BUT REAL PASSIVE INCOME

Most of us started with single-family rentals, and we learned that it required a lot of work than we thought. Even if you have a property manager, you’re still very hands on.

All the great returns on paper, never materialized.

Multifamily syndication is a very different experience for passive investors.  Investors invest in a deal and get to enjoy a lot of awesome benefits unique to this asset class.

So, here are the six amazing reasons why you should invest in multifamily syndication now:

BETTER RETURNS

Often, we look at the returns of multifamily syndication as being similar to single-family houses because we undervalue our time

If you consider the time you spent to renovate a property and all the hard work you need to do, many times, the returns are actually not what you think they are.

Multifamily syndication offers consistent, double-digit historic return. It gives higher returns compared to the stock market and single-family houses.  In my experience, you make MORE money by doing LESS work!  

LOWER RISK

When you look at the stock market, it’s a very up and down proposition with a lot of volatility. 

Some people will say that they are making 15% annually on the stock market, but when the stock market goes down, they lose a MUCH of those returns.

Historically, the stock market has an average return of around 6% or 7%, which is not as high as you might think going into it.  

When it comes to multifamily properties, especially the large ones, we see that rents typically don’t fluctuate much.  They typically rise with inflation. If you live in a major market, there was a time in 2008 and early 2009 (Hence – The Great Recession) when rents did come down slightly, but they came back very strong

When you look at the curve, it dipped a little bit but came back on the same upward trend. Generally, they keep pace with inflation, especially with all the money printing that’s happening by the federal reserve. 

With lower risk and lower volatility, there is no doubt that multifamily syndication is a very safe investment

LOWER FEES

If you invest in the stock market or have a money manager, you need to pay all sorts of fees. Usually, the money guy will take 2% and other hidden fees as well.

This is very different compared to a multifamily deal.

If you have a projected average return of 15% per year, that is already net of any fees. The fees are built into the deal, and typically, it’s a performance-based fee.

There are small fees, like acquisition fee and asset management fee, but the bulk of what a multifamily syndicator will get paid is through the performance. So, they’ll get 20% of the profit, and passive investors will get 80%.

The alignment of interests works to help serve investors well.  If a sponsor gets paid when a deal performs well, this is great for you as an investor.  

INFLATION HEDGE

Real estate works well with inflation. As inflation rises, so do property values. 

So, as the money gets printed, rents generally rise, which happens over time. 

And if inflation ever gets out of control, having income assets, like multifamily real estate, is highly beneficial

TAX ADVANTAGES

Investing in multifamily syndication gives investors some amazing tax advantages that can be taken advantage of. 

There are a number of tax breaks available and some of the most common types are real estate depreciation tax and investment tax deductions. 

These tax breaks allow you defer or write-off much of the gains that you make on a multifamily deal.  A process called a cost segregation study is the method that is used for this.  Obviously, consult your tax professional for any tax advice.  

Amazing, isn’t it?

TRULY PASSIVE INCOME

In multifamily investing, you don’t have to give much of your time to actually grow your wealth. This works well especially if you are a high-earning professional, business owner, or retired. 

Multifamily syndication produces truly passive income. You start investing your money and it just keeps growing.

It gets bigger and bigger and bigger over time.  Like a snowball.  

INVEST IN MULTIFAMILY SYNDICATION NOW

Multifamily syndication the best  investment in any economy – during a recession, during a pandemic, after a pandemic.

If you want to know more about multifamily syndication and the reasons why you should invest now, check out our free report at Free Pandemic Report.

We also have an investment club where we are doing deals continually. Want to know our upcoming deals? Join us now

Leave a Reply