If you already have considerable experience as a single-family real estate investor, then you already know just how difficult it is to get by in such a volatile market. The difficulty is even more daunting when you join the multifamily crowd.
Nonetheless, investing in apartment complexes is still a good way to secure a steady stream of cash. However, going alone through this route would definitely provide plenty of challenges.
Most investors would prefer to join a multifamily syndication. And this is not only because they want to rub elbows and grow their networks.
It goes beyond that. There are other more compelling reasons why you should join a syndication. Let’s take a deeper look at some of them:
A lack of experience
If it’s your first time in multifamily investing, it’s important to learn from experienced investors. This allows you to access information from people who are already experienced in the field.
When I first started, I took it upon myself to learn everything I can about the tricks of the trade. I read a lot of books, but reading can only do so much as give you answers to “What” and “Why” questions. For “How” questions, it’s always best to talk to a few experts/specialists who can fill you in on important investment tips and strategies.
Limited financial resources
Aside from experience, you also need to have enough funds to start buying your very first multifamily properties. You should know by now that apartment complexes don’t come cheap.
So, it’s important to tap into additional funding sources, which are always readily available when you join a multifamily syndication. You won’t have to worry about not having enough capital to join one. In fact, most syndicates would rather invite investors with shallow pockets instead of leaving the property to investors with a high net worth.
Lack of time
Pursuing a day job while managing a real estate investment can be tedious if not time-consuming. If you’re the sole owner of a multifamily property, you will need to keep its value intact through value plays and renovation projects.
Other than that, you will have to put up with a large volume of work before putting your investment strategy to motion. Normally, people who pursue other careers aside from being investors don’t have the luxury of time to give full attention to their investments. So, if you want to join a syndication, security is always guaranteed. A syndication frees you from the complex processes involved in acquiring a multifamily property.
Now that you have the right reasons for joining a syndication, it’s only a matter of securing your investments. For this, you only need to make sure that the syndicator you’re working with is capable.
Opt for someone who can conduct due diligence and property management. Moreover, find a syndicator who can distribute equity shares, and address legal matters such as complying with SEC rules.
With these reasons in mind, you will be able to make the most out of the money you place on a multifamily property.