Best Ever CRE Blog

The Pros of Passively Investing in Syndication Deals

Written by Joe Fairless | Nov 20, 2019 7:57:22 AM

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.

Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.