What is Multifamily Apartments Syndication
Syndication is the process and means for investors to pool their intellectual and financial resources in order to invest in different projects and properties which are much bigger in size and magnitude than what they may have been able to manage on their own.
How Investors make money through Syndication?
The cash flow that is generated from a syndicated property is distributed among investors on a quarterly or monthly basis according to the terms. Depending on the nature of the property, the value of a property can also be increased through forced appreciation. As a result, it becomes possible for the investors to net higher and also benefit from tax advantages and from the profit of the sale.
Statistics of Real Estate Syndication
- In 2017 more than 45,000 investors participating in syndication
- The average offering of real estate was more than 2.4 million
- More than 5 to 20% of the initial capital was invested by the sponsors
- 80-90% of the initial capital was invested by the passive investors
- 8% was the average preferred return