As an investment class, real estate may offer higher expected returns than more conventional investments. However, not all real estate investments will be suited to the investor’s liking. Considerations like time, capital, and technical expertise hold back some investors who favor a more passive approach to investment.
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For investors like these, who are looking to grow their wealth through real estate but are unable or reluctant to contribute their time, we recommend exploring syndication.
Syndication occurs when the capital to purchase a property is pooled from many investors. These investors share in the benefits of owning the property (income, tax breaks, among others) without taking on the responsibilities of a landlord. In this setup, there will be two parties involved in the investment: you as the investor and partner firms who will be the syndicators.
Read on to explore the advantages of investing in multifamily real estate syndication:
Lower Costs to Maintaining a Property
Syndicators secure huge property agreements like multifamily assets which can benefit from economies of scale. Property managers can negotiate better rates for bulk orders of materials and significantly bring down the cost of administration, maintenance, and remodeling costs for each unit.
Access to Larger Investment Opportunities
Investing in a multifamily syndicate gives you the opportunity to own bigger and more competitive properties in the market, which would’ve been too costly to invest on your own. These properties are also vetted by your syndicators, further ensuring that you get great returns from your investment.
Protection from Inflation
Property syndicates fare well against inflation. While inflation reduces the value of money, stocks, and bonds, it has a limited impact on multifamily properties that are sustained by the constant need for affordable housing. Having syndicates in your portfolio means you can rely on a steady stream of income, despite the market fluctuations.
Are you interested in syndication? Invest with our Makaan Investment Group, a trusted multifamily investment in Houston, Texas. You can enjoy the perks of syndication as our “limited partner”, without the worries of property management.
For more information about passive investment, you may send us an inquiry or get in touch with us at 281-500-8554.
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