Multifamily Investing is safe, gives significant rate of return, and isn’t subject to stock market volatility. But price of large multifamily properties (apartments) can be in millions. Many people don’t have enough money to buy apartments on their own. An apartment syndication is partnership between multiple investors who pool money to buy large apartments.
Key Partners
General Partners (GP) and Limited Partners (LP) are the key groups of partners in a syndication. Table below gives an overview. Basically, GP do all the work and LP bring most of the capital. LP are also called Passive Investors. Being an LP is a great way to earn passive income.
A typical syndication will have 2-5 GP. Number of LP depends on size of the deal. If the deal requires $1,000,000 raise and minimum contribution is $50,000, there can be up to 20 LP. It is common for GP to also contribute to capital raise.
There are countless ways to split income between GP and LP. Simplest of all is “straight split”. A straight split of 80/20 means LP will get 80% and GP will get 20% of total income.
Symbiosis between Partners
Apartment syndication is win-win partnership between GP and LP.
It’s Unfortunate You Don’t Know This
Passively investing as LP in Apartment Syndication is simple, safe, and has high ROI. Financial Advisors will not tell you about his because of their own vested interests. Do not live with stress of either having to let your savings sit in bank or subjecting it to stock market volatility. Live your dream life today with passive income from multifamily investing.
P.S. High-paid professionals are always wondering where to invest their savings. They don’t want to take more risk with stocks because they already have lot of money invested in stock market. Not knowing where to invest, they end up with lazy money sitting in bank.
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