Investing passive funds into a real estate deal with a syndicator spreads the risk by allowing members of the deal to purchase a larger asset with high cash flows. With this higher income the property is better able to absorb unforeseen expenses when they arise.
In our opinion the most profound difference between single family homes and multifamily properties is the way the properties are valued. In single family homes investments rely on the fluctuations of the market and the nearby home prices, so losses and gains are both dependent on how the market moves. Multifamily property valuations are mostly tied to the property’s net operating income. We are able to drive the valuation of the property up by making capital improvements or streamlining operational efficiencies.
Our partners make money in 3 ways once they join our team.
- Cash flow from the rental collections
- Proceeds from refinancing the property
- Proceeds from selling the property