There are a lot of investors who are interested in purchasing real estate, but one thing keeps them from pursuing it: having to play the role of landlord. Not many investors want the extra hassle of managing a property, dealing with tenants, and handling emergencies.

This is why apartment syndication has become so popular in recent times. If you are able to participate in this type of investment, you are able to enjoy passive income without having to take on any additional responsibilities.

For investors that want to buy real estate, but not willing or able to manage it, a syndication deal may be the best fit. It provides the usual benefits of owning a real estate investment property such as cash flow, tax breaks, and appreciation, without the work that normally comes with managing the property itself. It is definitely an opportunity that is worth looking into.

With that said, not many investors are actually familiar with multifamily syndication, how it works, and what it entails. Just like any type of investment, this is a massive undertaking, and so it is important to be familiar with the ins and outs of syndication before putting money into it.

If it is your first time investing in apartment syndication, or any type of multifamily syndication, you need a trustworthy and knowledgeable resource for all of your questions. Here we will be discussing how multifamily syndication works and why you should work with BAM Capital for your apartment syndication needs.

Why Work With BAM Capital: #1 Apartment Syndication Company

Syndication is when a group of investors pool their resources together to buy a real estate property that would normally be too expensive for any single investor. Real estate syndication deals can be done with multifamily properties, manufactured home parks, self-storage, hotels, land development, warehouses, student housing, and more. However, multifamily properties are the most popular because of their continuous cash flow and low vacancy rates. There are two main players involved in a syndication deal: the syndicator and the passive investors. The syndicators are also known as general partners (GPs) or sponsors. They locate the investment property and put the deal together. Their responsibilities involve completing due diligence on the real estate property, negotiating with the seller, arranging the financing, and finding investors for the syndication. [2]

The passive investors provide most of the capital needed to purchase the property. They then receive ownership shares of the investment property as a result.

Once the deal is put together, passive investors earn money from the cash flow as well as the equity upon resale. This is a passive investment because the syndicator is responsible for managing the property. Take note that some sponsors will hire a third party for property management. Others, such as BAM Capital, have an in house property management company.

Because the sponsor handles nearly everything involving the syndication deal, passive investors don’t have to worry about anything. It is also the syndicator’s job to create a solid business plan that will deliver strong returns to the passive investors. [2]

Real estate syndication deals provide equity, appreciation, and tax benefits for passive investors, all without giving them the role of landlord.

Working with BAM Capital makes this process smoother because this syndicator already has a proven and effective business plan. You no longer have to look for an investment property all by yourself. BAM Capital already handles that. This Indianapolis-based company has a strong Midwest focus, prioritizing Class A, A-, and B++ multifamily properties. Their main goal is to mitigate investor risk while providing a safe and passive investment for their investors. [3]

BAM Capital negotiates the purchasing and financing of high quality multifamily properties on behalf of passive investors. [3]

What Makes BAM Capital a Great Syndication Company for Acquiring Apartment Complexes

What sets BAM Capital apart from other multifamily real estate syndicators is local expertise. Because of its Midwest focus, BAM Capital has developed strong relationships and connections with sellers, brokers, and builders in the area. This provides them with expert knowledge on the assets being purchased for apartment syndication. [3]

BAM Capital has demonstrated a consistent track record of successful multifamily investing, and it continues to implement its signature investment thesis to allow for greater overall returns while lowering investor risk. This is why BAM Capital is the top real estate syndication company for acquiring apartment complexes.

Is Apartment Syndication a Good Investment?​

Investing in real estate syndication comes with a number of benefits. The biggest one is passive income. Investors may earn passive income distributions on a monthly or quarterly basis through their investments. Syndication is also hassle-free as there is no need to deal with tenants. The syndicator is in charge of property management. Another great benefit of multifamily syndication is the tax benefits. Investors can enjoy tax benefits by owning a piece of the real estate through their K-1 tax filings. [2]

Just like other real estate properties, the value of the multifamily investment property should also increase gradually, which leads to an increased return on investment or ROI. Finally, investors can spread their capital across multiple real estate syndication deals for diversification.

How Do You Invest in Apartment Syndication?

Unfortunately, multifamily syndication is not available to all investors. When it comes to syndication, only accredited investors can invest in it. For an investor to be “accredited” they need to meet certain criteria. For example, their net worth should exceed $1,000,000 to be an accredited investor. Alternatively, if someone has a yearly income of $200,000, they can be considered an accredited investor. If they have a spouse, they need an annual income of at least $300,000. [2]

There are certain real estate syndication deals that may only be offered to accredited investors. However, there are also plenty of real estate syndications that are made available to sophisticated investors, meaning someone with in-depth knowledge and experience when it comes to real estate investing.

In order to find syndication deals as a sophisticated investor, you need to actively network with other investors, particularly those who have an interest in real estate syndication. The key is in finding a trustworthy syndicator to work with. It is worth noting that BAM Capital only works with accredited investors.

BAM Capital: The #1 Choice for Savvy Investors with a Midwest Focus

BAM Capital utilizes a vertical integration model that mitigates investor risk—and this strategy has worked wonders for the company so far. In fact, BAM Capital currently has over $700M AUM and 5,000+ units thanks to its low-risk investment approach that creates forced appreciation. [3]

Investors can schedule a call with BAM Capital and invest today.