Multifamily syndication is an increasingly popular way for real estate investors to diversify their portfolios. A syndication deal is a type of real estate investment wherein multiple investors pool their money in order to purchase an asset. A multifamily syndication therefore focuses on multifamily properties rather than single-family units.

Multifamily properties have many advantages over single-family homes. For example, multifamily units are much more efficient properties due to the sharing of common elements like laundry rooms, parking spaces, storage units, pools, and so forth. They are cheaper to maintain due to the shared expense model. They also do not depreciate as quickly as single-family homes because they generally operate around the clock instead of being only occupied during daytime hours or weekends.

Multifamily properties offer more square footage per dollar, which makes them the better investment overall. Real estate investors can buy more real estate with the same amount of money.

The inherent qualities of multifamily properties benefit those who are investing into multifamily syndication. Since multifamily properties are usually located closer to major employment centers and other amenities compared to single-family homes, it reduces operating costs and enhances property values. It also means people are more likely to rent a unit within a multifamily property, which ultimately benefits investors. [1]

Multifamily properties can be an excellent investment vehicle for working professionals looking for affordable housing in urban areas. Multifamily syndication is also a good entry point for those who simply want to diversify their assets without the hassle of maintaining real estate on their own.

College Towns Offer Fantastic ROI for Multifamily Syndication Deals​

BAM Capital loves to invest in multifamily properties that are in or close to major universities that offer diversified employment. College towns offer medical, education, and other employment opportunities. While not focusing on student housing, college towns offer many opportunities to house those that are involved in the running of the college through various levels of employment. [2]

BAM Capital specializes in the acquisition and management of income-producing multifamily apartment communities. BAM Capital also focuses on B++, A-, and A multifamily assets to provide low-risk opportunities with lucrative assets. Accredited investors reap the benefits of their cash flow-positive assets. [3]

Real Estate Investing via Crowdfunding​

Multifamily syndication allows investors to tap into this lucrative market by pooling together their resources with other people who are interested in investing in multifamily units.

Through syndication, investors are able to make money in the multifamily industry even if they do not want to tie up all of their capital. Even accredited investors who lack the expertise needed to run a complex themselves can earn from investing in multifamily syndication. They simply need to join forces with those who do possess those qualities. In a syndication deal, a third party is sometimes employed to take care of the property. [4]

It all comes together to create a business model that is not only efficient but also profitable for everyone involved. It even allows investors to control more units than they would be able to otherwise, thus increasing their profits.

However, some investors shy away from multifamily syndication because the expenses associated with it are generally higher than that of single-family properties. Multifamily syndication is a good fit for accredited investors that have more experience in real estate investment.

Multifamily Syndication Pros & Cons​

Multifamily syndication can be highly profitable, but it still has a few cons. For example, there are risks that may come from market changes that reduce property value, or from poor property management. Some syndicators also charge excessively high fees—which is why you need to work with a trustworthy syndicator that has a remarkable track record: you need to work with BAM Capital.

This type of syndication comes with plenty of benefits that should not be understated. It lets investors put their money on a profitable real estate property without having to become a landlord. There is absolutely no hassle involved: no need to deal with tenants or emergency situations involving the property. As an investor, you don’t need to do any of the maintenance yourself. [4]

Multifamily properties are small, tightly managed communities where all work and services are handled by the syndicator and/or the property management company.

There is no single “best” multifamily syndication strategy or formula for finding the best syndication deal. Multifamily syndication depends on many factors including location, occupancy rates, and local demand. It is also important to consider who you are going into business with before you sign on the dotted line and put up your money. You want somebody who can be trusted and somebody whose business practices you deem ethical.

BAM Capital is an Indianapolis-based company that has been focusing on buying the right assets and staying disciplined in its investment thesis. BAM Capital works with accredited investors looking for high value syndication opportunities that will generate more income. [3]

Work with BAM Capital, a trusted real estate syndicator with over $700 million in assets under management and 5,000+ units. Schedule a call with BAM Capital and invest today.