Top Real Estate Syndication Companies
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Accredited investors looking into real estate investing can typically purchase large apartment complexes and other multifamily deals. But as you may know, these properties are huge, expensive, and difficult to maintain. So you may be wondering how they are able to handle it.
Even if accredited real estate investors have the financial ability to purchase a multifamily real estate property, it is not always a smart idea to do so. A better approach is to look for real estate syndication deals for properties that you think could be profitable.
Determining whether or not a real estate property might be profitable isn’t necessarily your job, however. Real estate syndication firms use their expertise to look for properties that are potentially lucrative. They then put a real estate syndication deal together and locate passive investors who will participate in the investment.
Here we will discuss the top real estate syndication companies out there that you can work with so you can be part of the most lucrative real estate syndications.
What is Real Estate Syndication?
Before we discuss the companies that can help you find real estate investment opportunities, let’s talk about real estate syndication first. What is it and how does it work?
Simply put, a real estate syndication deal is a group investment that allows sponsors to invest in properties that they would not be able to afford otherwise. The sponsor, also known as the syndicator, puts the deal together. They are responsible for researching and evaluating potential properties that could be used for the syndication deal. They also raise the funds needed to purchase the property and look for investors who will participate in the investment. Passive investors contribute money to help fund the deal. [1]
Multiple investors pool their resources together to buy a single real estate property. Any type of property can be used for a real estate syndication deal, even commercial real estate projects. However, multifamily properties are the most popular type of syndication, especially among accredited investors. [2]
Single family properties have the risk of becoming vacant, which can be bad for your cash flow. On the other hand, multifamily properties have more than one unit so they are not heavily impacted by vacancies.
Multifamily properties have multiple units, which means it can be a strong and consistent source of cash flow. Not to mention larger properties like condominiums and apartment complexes are generally expensive, meaning they are much harder to obtain for a lone investor. A real estate syndication deal makes it possible for investors to put money into these properties.
The role of the syndicator is to put the deal together and find investors. Syndicators also share the risks as well as the returns on the multifamily investment. In the deal structure, they are typically considered General Partners (GPs) while passive investors are Limited Partners (LPs).
The real estate syndication company will take care of all the little details including underwriting, networking with investors, researching properties, negotiations, and due diligence. On the other hand, investors play a much more relaxed role. They invest on the property to receive equity from the deal and a share of the cash flow. This depends on the deal structure, as not all multifamily syndication deals are the same.
In the real estate syndication industry, syndication deals are usually formed as LLCs or Limited Liability Companies. They may also be formed as Limited Partnerships (LP). [1]
What are the Benefits of Multifamily Syndication?
Because of the way syndications work, you are pooling your money with other investors and therefore exposing yourself to fewer risks. Imagine how risky and expensive it is to purchase a large multifamily property all on your own. In the real estate syndication space, you are only liable for losses that are equivalent to what you invested. Unlike other investment types, you don’t have to bear the load of all the losses.
The lowered risk is not the only benefit of investing in multifamily syndication. In fact, these investment opportunities can be potentially lucrative for a number of reasons.
For starters, larger properties tend to enjoy high occupancy rates. This means lower vacancy rates and a much smaller toll on your pockets. Even in the case of an occasional vacancy, the high quality real estate properties offered by some of these investment companies tend to draw in a lot of attention, so they don’t stay vacant for too long. The high occupancy rate means it can generate a strong cash flow. [1]
Additionally, the passive nature of real estate syndication means that it is much less time-consuming than other investments. In fact, you don’t even have to take care of the property once it has been purchased. Property management falls on the shoulders of the syndicator. This means multifamily syndication is a truly passive investment where you can just sit back, relax, and let your money work for you.
With real estate syndication, you do not have to play the role of landlord. There’s no need to manage tenants, handle emergencies, collect rent, etc. The syndication company will do it for you, either by hiring a third company property management company or by handling it themselves. Either way, you do not have to do anything.
Real estate syndication gives you all the benefits of owning a real estate property without the headaches of managing one. Keep in mind that most syndication deals are exclusive to accredited investors.
What are the Top Real Estate Syndication Companies?
If you want to be a passive real estate investor, you have to look for a real estate syndication company to work with. You can look at real estate crowdfunding platforms or join real estate networking groups. However, some companies stand out from the rest.
BAM Capital
BAM Capital is an Indianapolis-based syndicator with a strong Midwest focus. BAM Capital prioritizes Class A, A-, and B++ multifamily real estate properties. This company ensures that investors can enjoy a passive real estate investment that will help them grow their wealth.
BAM Capital helps accredited investors enjoy all the benefits of owning multifamily real estate without having to play the role of landlord. Investors can focus on their other investments while BAM Capital does all the work for the multifamily syndication.
BAM Capital negotiates the purchasing and financing of high quality real estate on your behalf. In fact, they can even create forced appreciation while mitigating investor risk thanks to their award-winning multifamily investment strategy. [3]
The company now has over $700 million AUM and 5,000+ units. It goes without saying that accredited investors trust BAM Capital.
This is the best syndicator for you if you want a safe and passive investment in multifamily real estate.
BAM Capital For The Win
We at BAM Capital are very confident that we have THE BEST plan for growing wealth for our investors through real estate investments. That being said, there are other companies that invest into different parts of the country. So, here are a few that.
When people discuss investments for accredited investors, they usually think about hedge funds, private placements, and venture capitals. But accredited investors have access to even more investment opportunities thanks to their high net worth and annual income. Real estate syndication is one of the opportunities exclusive to accredited investors.
If you are an accredited investor and you want to invest in high quality multifamily apartment complexes, BAM Capital is the best syndicator for you.
Just remember that no investment is without risk. Make sure to consult your investment advisor or speak to a BAM Capital investment team member before making any financial decisions. Accredited investors can schedule a call with BAM Capital and invest today.
