With a growing number of renters across the country and vacancies at their lowest level since 2000, there is no better time for an investor to diversify their portfolio with the multifamily property. Most individuals don’t need to be sold on the benefits of multifamily investing – they’re well aware of the tax breaks, high appreciation rate, and monthly cash flow. However, some investors choose to forgo investment in multifamily for two reasons: the high amount of capital needed to purchase a multifamily building and the headache that comes with it (managing tenants). The good news is that placing a large down payment on a multifamily building and worrying about tenants, repairs, and upkeep isn’t the only option when it comes to investing in multifamily. In this article, we’ll discuss alternative options for those interested in pursuing multifamily and how to get started – whether you’re a seasoned investor or brand new to the industry.
Invest in Real Estate Syndication
Real estate syndication, which involves pooling capital from several investors into a portfolio of properties, is an alternative option for those interested in investing in multifamily without having to worry about managing property, paying for repairs, handling tenants, and going through the process of applying for a loan. Mentis Capital Partners is a real estate syndication firm that pools capital together to invest in student housing and other multifamily deals and is a great option for accredited or sophisticated investors who are seeking monthly cash flow without the burden of managing a building.
How to Get Started in Multifamily Syndication with Mentis Capital Partners:
Step #2: From there, a deal sponsor from our team will give you a call to discuss your investment goals.
Step #3: You will be added to our investor list where you can evaluate deals in student housing and other multifamily options to determine which properties best align with your investment goals.
Benefits of Investing in Multifamily Syndication
There are several benefits to going the syndication route, including getting depreciation benefits (since you actually own a portion of the properties being purchased in the investment fund), receiving a monthly distribution after tenants pay their rent each month, and not being on the loan (so you don’t have to go through the rigorous loan application process).
When choosing to go this route, the most important question to ask yourself is whether or not you trust the sponsor of the deal. After all, you are giving them a significant amount of your funds to invest in the hopes that they will identify properties in strong markets with significant upside. It’s especially important that the sponsors invest their own funds alongside you, proving their confidence in their investment decisions. Our management team here at Mentis Capital Partners has completed transactions totaling over $250M and we always invest alongside our investors, proving our dedication to our clients and our confidence in our investment decisions.
Additional Resources for Multifamily Investors
In addition to following the recommendations included in this article, we also recommend reading several helpful and informative books that will help hone your skills as an investor. Some of our favorites include Rich Dad Poor Dad, Think and Grow Rich, and Am I being Too Subtle. You can also visit our website or contact Nick Simpson directly at firstname.lastname@example.org