Real Estate Investing for Pilots: Syndication

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Real estate investing is a good venture for professionals who want to make their money work for them. Lately, there seems to be a trend of pilots looking into real estate as a potential investment option. Pilots who decide to put some money into a real estate property can create a new revenue stream, enjoy a tax shelter, and grow their wealth.

However, the main concern for pilots who want to try real estate investing is whether or not they have enough time to handle the property. Typically, when you buy a property, you take on the responsibilities of being a landlord. This is especially true if you bought a multifamily property such as a duplex, a triplex, or condominium. But there is a way for pilots to invest in real estate and generate passive income without having to directly manage the property themselves. Here we will be discussing multifamily syndication.

Multifamily Real Estate Syndication for Pilots

Pilots don’t have a lot of free time on their hands. While some of them do have more convenient schedules, most pilots do not have the time to focus on investing—especially if it is something as hands-on as real estate investing.

But if you look online you will find quite a few success stories of pilots going into real estate and being able to make it work for them.

While there are traditional methods to consider such as investing in the stock market, there is one particular investment strategy that is the perfect fit for busy individuals like pilots: multifamily syndication.

Real estate syndication is when a group of investors pool their resources together to purchase a single real estate property. Multifamily syndication is when this is done to purchase a multifamily property such as an apartment complex. [1]

Pilots are not necessarily looking for another job. Their primary goal with investing is to have their money work for them without having to exert as much effort as they are already putting into their day job. They also do not have the time to handle the responsibilities of being a landlord. With multifamily real estate syndication, this is no longer a problem. Pilots can go on flights without worrying about the property that they bought. They can just enjoy the benefits of their passive investment.

Passive Real Estate Income for Pilots

Multifamily syndication is a passive real estate investment. It allows investors to purchase properties that they otherwise would not be able to afford. Multifamily properties are generally more expensive than single-unit properties—that is why they are perfect for syndication.

In a syndication deal, a sponsor or a syndicator locates a real estate property, puts the deal together, takes out the necessary loan, and then looks for investors to participate in the deal. The sponsor chooses an existing commercial or multifamily property to buy. The investors will be providing capital for it. The investors then earn money from the cash flow and the equity upon resale. [2]

Once the deal is in place, the syndicator takes charge of managing the property. This means pilots don’t have to worry about tenants or emergency situations: the syndicator is in charge of property management. That’s what makes it an appealing investment for investments looking for a passive source of income.

The syndicator will sometimes hire a third party to handle property management. Thanks to BAM Capital’s vertically integrated business model, the property management is done in-house. 

Because of their role in the project, the syndicator typically receives fees and/or “distributable cash” that are left once all the expenses and loan obligations have been paid. [3]

Less Headache for Real Estate Investors: Choose Syndication

For pilots, multifamily syndication takes a lot of weight off their shoulders. Their job is difficult enough—but thanks to syndication, they can rest knowing that their hard-earned money is working for them in the background.

Some of the richest people in the world have made real estate a core part of their investment strategy. Pilots can use the same approach to build their net worth. But it is not necessary to take an active part in managing the real estate property when you can have someone else do it for you.

The sponsor or the syndicator—in this case, BAM Capital—will handle things like finding the right investment property for the multifamily syndication and looking for investors to complete the deal.

Pilots can focus on flying the plane without worrying about building wealth: they can enjoy the financial freedom provided by investing passively through multifamily real estate syndication.

Why Work with BAM Capital for Multifamily Syndication

For pilots who want to try multifamily syndication, BAM Capital is the best option because of its vertical integration model that mitigates risk for investors.

BAM Capital prioritizes Class A multifamily properties because it values low-risk investments for passive investors. It also has a strong Midwest focus, prioritizing Class A, A-, and B++ multifamily real estate properties in that area.

BAM Capital will arrange the syndication deal so there is no need to purchase an asset on your own. BAM Capital will also handle property management.

BAM Capital works with accredited investors and negotiates the purchasing and financing of high quality multifamily real estate properties on their behalf. This Indianapolis-based company currently has $700M AUM and 5,000 units. Schedule a call with BAM Capital and invest today.

 

 

BAM Multifamily Growth & Income Fund III

BAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.

  • Consistent passive income
    Lower-risk assets with in-place cash flows with the ability to distribute preferred return after acquisition.
  • Significant tax benefits
    A cost segregation analysis allows for accelerated deprecation to years of ownership. This large passive loss gets passed onto investors through a K1.
  • Vertically integrated company
    In-house property management and construction allow for predictable cost reduction and value add.

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The contents on this site are for informational and entertainment purposes only and do not constitute financial, investment, or legal advice. BAM Capital cannot guarantee that the information shared on this post or page is appropriate for you and your financial situation. By using this site, you agree to hold BAM Capital and any and all entities related to the writing & publishing including BAM Capital’s parent company harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. Always consult your investment advisor, CPA, and other professionals before making an investment. BAM Capital is excited to help you grow your investment assets. Please contact us to see how we can help you.