Apartment Syndication Program
Put together your own apartment acquisition partnerships with our expertise and other people’s money
The Apartment Consultant and its highly-skilled legal and financial advisors are here to help you put together partnerships to purchase apartment complexes.
Here’s a secret. Those large multi-million apartment investment companies out there you see that own and control thousands of apartment units all over the country? You want to know their secret? The secret is partnerships. These companies were put together through syndication…the same partnership structures that we can help you put together.
Allow me to show you the 3 benefits of syndicating partnerships. Let’s say you found a great 24-unit deal:
1. But you don’t have the down payment and credit to close on the deal.
2. Or how about you have the down payment and credit, but you don’t have the track record (you’re a beginner) to satisfy the lender? How do you get past this?
3. What if you’re really good with finding and negotiating deals, but the finance part and the operations part just isn’t your “thing”? You just want to focus on your strengths – finding deals and negotiating. That’s great! But where do you find the financing or the person with experience of running a large apartment project?
Those are 3 very good reasons to form a partnership the way we can design it for you - the beginner or the experienced.
And here’s a potential lucrative financial reason:
You can generate significant monthly income or so-called “syndication fees” as you systematize your business so your recurring deal-closings grow your equity positions in each deal. This is truly how the wealthy get wealthy – past, present, and future since the origin of real estate.
Here’s what you can potentially look forward to if done well:
• Become a major player in your market without risking any of your own money.
• Build a formidable reputation after only one deal so that investors and banks will continue to say “yes” to you.
• Close on more deals per year by leveraging partnerships.
• Create a fortune for yourself by leveraging your knowledge and ours!
• Build a six, seven, or eight figure real estate investing business over time.
As an example, allow me to show you just a small piece of the wealth potential with a 24-unit apartment example. And the same principles would apply for a 4-plex or a 200-unit apartment building.
Let’s say you find a great 24-unit apartment complex and you put it under contract for $960,000. And it cash-flows $5500 per month after expenses and mortgage. Reasonable, right? But there’s one problem: you don’t have the 25% down payment of $240,000. What do you do? My aim for this program is to show you how to go out and find and put together a pool of people and talents to not only get the $240,000 but also meet any other requirements the banks may ask for such as credit, prior experience, and cash reserves.
Let’s continue with the example and I’ll keep it brief and broad. You go out and get 4 people that invest a sum total of $240,000 plus reserves. You’re going to pay them an 8% annual return. Additionally, you’re going to entice them with 25% back-end profits, meaning that when you sell the property, they’re going to receive additionally 25% of the total profits. You can call this “profit-sharing”.
Next, you go out and recruit a person with the required credit and experience (if you don’t have it yourself) that satisfies the lender. You’re going to compensate that person with another 25% of the deal’s back-end profits. Follow me so far?
Therefore, you now have all the money you need and the credit and experience required to close on the deal by partnering effectively. This is what syndication is. Look what remains for you: 1) all cash flow after paying the 8% return; 2) 50% of the deal’s profits when sold; 3) you retain control over all decision-making; 4) you get the biggest portion of the tax benefits, perhaps enough write-offs that you end paying zero income taxes. You’re also eligible to make an upfront $10,000-$25,000 “acquisition fee” for putting the whole deal together. And after you close, someone has to watch over the project (called managing the manager) and that person (you) is entitled to a monthly asset management fee. And lastly, when you finally sell the property, you’ll be overseeing that process and are due a “disposition fee” at the closing. Do you see the potential here? If so, we’re here to help you get started syndicating apartment deals around this blessed country of ours.
Give Peter a call at (415) 657-3397 and see if your vision of your real estate investment business can be accelerated through the use of syndication. Or email him directly at:
Peter@TheApartmentConsultant.com