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The Pros of Passively Investing in Syndication Deals

You’re bound and determined to make more money as a commercial real estate investor in the coming months. The problem, though, is that you may have shied away from apartment investing, which can be a huge boon to your real estate business.

Your reasons for not diving into apartment investing? “I don’t have enough money.” Or, “It’s just too complicated to figure out and handle on my own.”

The great news? You can overcome both of these obstacles simply by investing in other people’s apartment syndication deals.

Here’s a rundown on 3 reasons why you should invest in apartment buildings through syndication opportunities.

1. Reduce Your Risk

One of the biggest reasons to invest in apartments via a reputable syndicator is that the risk associated with the investment will be dispersed among every investor. You won’t be held liable for any decisions that the syndication’s managing members make regarding the funds. As a result, you can essentially adjust your capital to a more comfortable risk level when you invest in other people’s syndication deals.

2. Invest Passively 100%

Another major reason why you should invest in apartment buildings is that you will reap the returns while being totally removed from these assets, including the operational and management perspectives. In other words, you can make money through passive investing and have more free time to focus on the things you enjoy.

That’s because the general partner will assume responsibility for every aspect of the deal, including locating profitable properties and managing property managers. You’ll simply pay your syndicator a portion of your deal-related cash flow/appreciation and enjoy a steady stream of income.

3. Gain Access to Huge Investment Opportunities

Finally, with syndication deals, you can invest in assets worth millions of dollars or even hundreds of millions of dollars—something you might have trouble doing with your own capital. Pooling your funding with fellow investors basically exposes you to an asset class that otherwise might be out of reach for you. And, of course, these larger investments are likely to have larger payoffs.

Start Taking Advantage of Apartment Syndication Opportunities

If you’re passionate about the idea of making money in the commercial real estate market, you can’t go wrong with pursuing apartment syndication deals. Of course, if you’re not familiar with the process of investing in other people’s deals, or if you’ve hit a roadblock with a particular deal, you may end up losing out on a huge, potentially lucrative opportunity.

Fortunately, I have extensive experience with apartment syndications, and I know firsthand how excellent they can be. For this reason, I am excited to share with you how to capitalize on these deals every time. For instance, I discuss in my Best Ever Apartment Syndication Book how to complete your very first deal step by step.

Get in touch with me today to find out more about why syndication deals make sense and how you can use them to grow your bottom line in the months and years ahead. Moreover, if you’re already an accredited investor, you might be interested in investing in one of my lucrative apartment deals. If you dream of becoming a passive investor, please reach out to me.

Apartment Syndication School

Apartment Syndication School

Welcome to the Syndication School

We created the Syndication School to provide you with a FREE apartment syndication education so that you have the tools to launch your own investment empire.
Each week, we will release two podcast episodes that focus solely on apartment syndications. For the majority of episodes, we will offer you a FREE resource, which will be available for download below.

Series #1 – Why Apartment Syndications?

In this first series, we will discuss the benefits and drawbacks of the syndication strategy so that you can determine if it is the ideal investment for you.

In part 1, we will define what an apartment syndication is, as well as compare and contrast raising money vs. using your own money to buy apartments. We will also discuss the difference between being a passive investor or active sponsor in apartment syndications.

In part 2, we will compare and contrast syndications to other popular real estate strategies, including single-family rentals, smaller multifamily properties, REITs, and development.

Series #2 – Are You Ready to Become an Apartment Syndicator?

In the second Syndication School series, we will discuss the two main requirements before you are ready to start your apartment syndication business.

In part 1, we cover the first requirement – the experience.

In part 2, we cover the second requirement – the education.

Free Resource:

  • Click here to download your FREE Master the Lingo presentation, which has a list of over 80 apartment syndication terms, including the definitions and real-world examples, that you need to memorize and know how to immediately calculate before you are ready to become an apartment syndicator.

Series #3 – How to Break Into the Apartment Syndication Industry

In this Syndication School series, we will discuss the 9 creative ways to break into the business of apartment syndications after meeting the experience and educational requirements.

In part 1, we cover strategies 1 to 4.

In part 2, we cover strategies 5 to 9.

Series #4 – Tony Robbins’ Ultimate Syndication Success Formula

In this Syndication School series, we will discuss the first two steps in Tony Robbins’ Ultimate Success Formula and how to apply those steps to your syndication business.

In part 1, we cover step one of Tony Robbins’ Ultimate Success Formula – Know Your Outcome.

In part 2, we cover step two of Tony Robbins’ Ultimate Success Formula – Know Your Why.

Free Resources:

  • Click here to download your free resource, the Annual Income Calculator. The Annual Income Calculator is a spreadsheet that automatically calculates how much equity you need to raise from passive investors in order to achieve your 12-month apartment syndication goal.
  • Click here to download your free resource, Tony Robbins Goal Setting Exercise. Watch the 35-minute goal setting video by Tony Robbins and complete the four-step goal setting exercise for your apartment syndication business.

Series #5 – How to Select a Target Apartment Syndication Investment Market

In this Syndication School series, we will discuss the process of selecting a target investment market for your apartment syndications.

In part 1, we introduce the concept of a target market and the overall process of selecting a target market.

In part 2, we cover the process of selecting 1 or 2 target markets.

Free Resources:

Series #6 – How to Perform an In-Depth Analysis of Your Target Apartment Syndication Market

In this Syndication School series, we will discuss the process of performing a more in-depth analysis of a market after selecting 1 or 2 target investment markets (which was accomplished during Series #5).

In part 1, we re-introduce Joe’s Three Immutable Laws of Real Estate Investing and discuss an exercise that accomplished the goal of understanding a target market on a neighborhood-level.

In part 2, we discuss other strategies to implement to also accomplish this same outcome.

Free Resources:

Series #7 – The Power of Your Apartment Syndication Brand

In this Syndication School series, we will discuss the process of creating your unique apartment syndication brand.

In part 1, we discuss why you need a brand as an apartment syndicator, how to select a target audience, and how to create the first three components of your brand.

In part 2, we discuss the fourth component of your brand: the website.

In part 3, we discuss the fifth component of your brand: the company presentation.

In part 4, we discuss the sixth and final component of your brand: thought leadership platform.

Free Resources:

Series #8 – How to Build Your All-Star Apartment Syndication Team

In this Syndication School series, we will discuss the process of building your apartment syndication team.

In part 1, we discuss who your core and secondary team members will be, how to find prospective team members and the process of hiring team members #1 and #2 – partner and mentor.

In part 2, we discuss the process of hiring team member #3 – property management company.

In part 3, we discuss the process of hiring team member #4 – real estate brokers.

In part 4, we discuss the process of hiring team members #5 – #7 – attorneys, a CPA, and a mortgage broker – as well as what order to hire the team members in.

Free Resource:

Series #9 – How to Raise Capital from Passive Investors

In this Syndication School series, we will discuss the process of raising capital from passive investors.

In part 1, we discuss how to overcome any fears you have in regards to raising money from passive investors.

In part 2, we discuss the differences between the various types of money-raising structures.

In part 3 and part 4, we discuss ways to find passive investors.

In part 5 and part 6, we discuss the process of initially approaching and conversing with interested investors.

In part 7 and part 8, we discuss how to be prepared to respond to the 49 most common questions asked by passive investors.

Free Resource:

Series #10 – How to Structure GP and LP Compensation

In this syndication school series, we will discuss how to create compensation structures for the GP and LP.

In part 1, we discuss how to structure the GP compensation.

In part 2, we discuss how to structure the LP compensation.

Free Resource:

Series #11 – How to Qualify an Apartment Deal

In this Syndication School series, we will discuss how to qualify an apartment deal using a three-step evaluation process.

In part 1, we discuss step 1 of the apartment deal evaluation process – setting your initial investment criteria.

In part 2, we discuss step 2 and step 3 of the apartment deal evaluation process – underwriting and due diligence.

Series #12 – How to Find Your First Apartment Syndication Deal

In this Syndication School series, we will discuss how to find your first apartment syndication deal.

In part 1, we discuss the distinction between on-market and off-market deals.

In part 2, we discuss how to find on-market and off-market deals from real estate brokers.

In part 3, we discuss how to find off-market deals via direct mailing campaigns.

In part 4, we discuss 9 more ways to find off-market apartment deals.

In part 5, we discuss one real-world case study for how a syndicator found an off-market deal.

In part 6, we discuss two more real-world case studies for how a syndicator found an off-market deal.

Free Resource:

Series #13 – Breaking Down the Apartment Financials

In this Syndication School series, we will discuss the three pieces of information you need to underwrite a deal.

In part 1, we discuss the rent roll.

In part 2, we continue our discussion on the rent roll.

In part 3, we discuss the T-12.

In part 4, we continue our discussion on the T-12.

In part 5, we discuss the OM.

In part 6, we continue our discussion on the OM.

Free Resources:

Series #14 – How to Underwrite a Value-Add Apartment Deal

In this Syndication School series, we will discuss the eight-step process of underwriting a value-add apartment deal.

In part 1, we discuss steps 1, 2, and 3 of the underwriting process.

In part 2, we discuss ways to add value to apartment deals.

In part 3, we discuss step 4a of the underwriting process – setting assumptions.

In part 4, we discuss step 4b of the underwriting process – setting the remaining underwriting assumptions.

In part 5, we discuss step 5 – determining an offer price.

In part 6, we discuss step 6 – performing a rental comparable analysis.

In part 7, we discuss step 7 – confirming the rental comps over the phone or in-person.

In part 8, we discuss step 8 – visiting the property and market in person.

Free Resources:

Series #15 – How to Submit an Offer on a Syndicated Apartment Deal

In this Syndication School series, we will discuss the process of submitting an offer on a syndicated apartment deal.

In part 1, we discuss how to create a letter of intent.

In part 2, we discuss what happens after you submit a letter of intent.

Free Resource:

Series #16 – How to Secure Financing for an Apartment Syndication Deal

In this Syndication School series, we will discuss the process of securing the financing (i.e., debt) for your apartment syndications.

In part 1, we discuss the types of debt and financing available.

In part 2, we discuss the first two most common financing programs.

In part 3, we discuss the other common loan programs and what you need to provide to the lender to secure financing.

In part 4, we discuss how to select the ideal apartment loan.

Free Resource:

Series #17 – How to Perform Due Diligence on an Apartment Syndication Deal

In this Syndication School series, we will discuss the process of performing due diligence on your apartment syndications.

In part 1, we discuss the first 5 due diligence reports.

In part 2, we discuss the last five due diligence reports.

In part 3, we discuss how to interpret the results of the first 4 due diligence reports.

In part 4, we discuss how to interpret the results of the last 6 due diligence reports.

Series #18 – How to Secure Commitments From Your Passive Investors

In this Syndication School series, we will discuss the process of securing financial commitments from your passive investors after putting a deal under contract.

In part 1 and part 2, we discuss how to create an investment summary.

In part 3, we discuss how to create an email to notify your investors about your new deal.

In part 4, part 5, and part 6, we discuss the process of a successful new investment offering conference call.

In part 7, we discuss the last step in the process of a successful new investment offering conference call and how to follow-up afterward.

In part 8, we discuss how to finalize investor commitments by sending the correct legal documentation.

Free Resource:

Want to learn how to build an apartment syndication empire? Purchase the world’s first and only comprehensive book on the exact step-by-step process of completing your first apartment syndication: Best Ever Apartment Syndication Book.

Download the FREE Passive Investor Resource GuideSimply provide your information to download