Real Estate Investing for Pilots: Syndication

by | Jan 28, 2022 | BAM Blog, Multifamily Syndication, Real Estate Investing | 0 comments

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 could be 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, depending on the resale structure. [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 an 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 over $700M AUM and 5,000+ units. Schedule a call with BAM Capital and invest today.