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The 3 Unbelievable Advantages of Multifamily Syndication

By January 27th, 2021No Comments
3 Unreal Advantages of Multifamily

The richest people in the world are where they are because they are able to make their money work for them and grow even while they are asleep.

Making money is not hard but growing your wealth without putting in any hard work definitely is.

While there are many investing options like stocks, Certificate of Deposits and Bonds, not many people like to go on this rollercoaster ride.

Another popular option is investing in Real estate. 

Throughout history, real estate investing has offered some of the most consistent and steady returns on investment. It works for many people, especially if you are one of those who are looking to put their hard-earned money to use.

Even in real estate, you will find different options but the one that works best for most is multifamily syndication. It is not only lucrative but it is also less risky and involves and requires less involvement from your part.

While real estate is a non-liquid asset, meaning that it is difficult to convert your investment into cash quickly, the benefits of passively investing in multi-family properties through real estate syndication far outweigh this minor drawback. 

So, let’s dive in to see  unbelievable  advantages of putting your money in a multifamily syndication

It’s a Truly Passive Income

A lot of people think that investing in real estate will be a lot of work. They think that if they invest in real estate, they are going to become landlords. They will have to worry about their properties, take care of them, attend to calls in the middle of the night and it’s going to be a nightmare. 

But this is only true if you invest in single family homes. Investing in a multifamily syndication is different. We are talking truly passive income here. 

Whether you are working in a high demanding job, have a business to manage, or a retiree who would love to put his/her savings into use, multifamily real estate syndication is your best option.

How a Real Estate Multifamily Syndication Works?

In a real estate multifamily syndication, you work with a reputable sponsor or a reputable operating group that has been doing this for a while. They basically go and buy an apartment building using money from investors. The profits are then split between the investors and the operations let’s say in a ratio of 80:20.

The best thing about investing in real estate syndication is that you no longer have to deal with the hassle of maintaining your properties.

The deal sponsor or the operating group covers everything from acquisition to property management to selling the property. 

As a passive investor, your main role is to vet the property and vet the deal and make sure that it makes sense. You won’t have to talk to your tenants at all. Just sit back, relax, and collect payments in the form of monthly or quarterly distributions and lump sum payouts at disposition (and sometimes refinancing).

Investment in multifamily syndication is scalable. You can actually grow your wealth without getting involved and spending time. 

A Little About Me:

I have worked as a consultant in the medical field for quite a while. And I have seen a lot of physicians making millions of dollars every year. But this requires them to work for 60, 70 or sometimes even 80 hours a week.

Inflation Hedge

There are even some emergencies where they have to go in odd hours, see the patient and get the procedure done. If they don’t do that, they won’t get paid.

Now if you want to earn this much money but don’t like to work crazy hours then, passive investment is your best option. You can easily get double digit returns pretty consistently. According to the National Council of Real Estate Investment Fiduciaries (NCREIF) Residential and diversified real estate investments bring in roughly 12% in average annual returns.

Multifamily real estate syndications are a fantastic hedge against inflation.

How? Let me explain!

The Federal’s Reserve’s inflation target is 2% each year, which means everything goes up in costs, including rents. The purchasing power, on the other hand, goes down by 2%.

The FED is going to try to have the currency worth less and less. 

There is a great book on this topic called ‘Rich Dad, Poor Dad. It is the number one selling personal finance book of all time. Robert Kiyosaki, who is the author of this book says cash is trash.He further says that people who sit on cash and keep saving it in their bank accounts are losers. 

The reason is if you are sitting with a lot of cash in your bank account and the Fed keeps on doing what it’s doing right now, which is printing trillions of dollars, the value of your  cash savings will go down drastically.

The currency supply has increased by two and a half times what it was 12 years ago. Now we haven’t seen significant inflation, but if that picks up, owning real assets, such as multi-family income real estate, will help.

Here’s how.

When inflation occurs, it lowers the value of money in your pocket and other assets such as stocks and bonds

Now let’s say you invest in the stock market and make an average of 7% a year that really means you’re really getting 5%.

However, real estate is an inflation hedge, which maintains or increases its value over time. During the inflationary period, rents and property values typically go up.

The more the inflation goes up, the more profit you get (Increased rental income + Apartment property appreciation).

Win-win situation

Tax Advantages

When it comes to taxes, multifamily real estate syndication has advantages over nearly every other investment.

Deal sponsors typically perform what is called ‘cost segregation analysis’. It allows you to write off or defer a substantial portion of the money that is made through the property. 

The primary goal of this study is to identify all property-related costs that can be depreciated over 5, 7, and 15 years.

Let’s say you invest $50K and make a 10% cash-on-cash return. This means you are generating an annual cash flow of $5K. All of these gains are either deferred or written off through depreciation.  

The best part? You can also carry forward these losses when you sell the property and get a tax cut too.

Multifamily Syndications: The Best Investment In Any Economic Environment!

There are many choices when it comes to investing. Some yield high returns, but they are risky. Then there are safe investments that offer modest returns. Multifamily syndication is the only investment that is below-average risk and offers above-average returns. It also makes sense in all kinds of economic environments. And don’t forget the unique tax benefits it comes with. Combine all these and trust me you won’t find a better investment opportunity.

If you are interested in learning more, we have a special report about investing, comparing the stock market and real estate and kind of how the pandemic affects all that. 

Also, if you are interested in investing with us, we are happy to answer any questions that you may have, We are constantly doing deals. Join our investment club today and we will let you know about upcoming deals. 

We’ll look forward to seeing you!

Bronson Hill

Bronson used to work as a consultant for a medical device company but switched to investing in apartment buildings to make his money work for him. He started with a single rental property that made good money and, after some advice from a family member, moved into bigger real estate projects. Now, he's all about helping others get into this kind of investment to earn money without having to work all the time. When he's not dealing with investments, Bronson loves to travel, write songs, stay active, and help fight modern slavery through his work with Dressember. He believes in working smarter, not harder, and wants to share how that's possible with everyone.

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