Note: For information purposes only. Not intended as personalized advice of any sort. Please consult a qualified professional.
“Okay, I believe you when you say I should ‘build businesses and buy real estate,’ but what kind of real estate are we talking about? How do I get started?”
There are many different types of commercial real estate. Some have greater success than others in different markets, and under different market conditions.
One particular type of real estate that I believe is worth considering is multifamily, a.k.a apartments.
Why? Scalability - the ability to scale down your operating costs, and scale up your cash flow, in a shorter amount of time.
“But apartment complexes are so expensive! How could I possibly afford something like that?”
On your own, it might not be possible. But with the help of others, it may be possible.
I’m talking about Real Estate Syndication, or Multifamily Syndication. An article in Forbes describes what Syndicates are, and what they do:
“A syndication company is a type of real estate investment that gathers investors who pool together their monetary resources to acquire income-producing real estate, such as large multifamily or commercial properties. In particular, multifamily syndication is an investment vehicle that allows investors the ability to earn passive income from cash flowing real estate investments. A great aspect of multifamily syndications is that the investment vehicle is openly available for both experienced and novice investors alike.
“For multifamily syndications, there are no experience requirements to qualify and no constraints on the number of investors that are held within a multifamily deal. Keep in mind that for multifamily syndications, there are particular policies governed by the SEC. Particularly, rule 506(c) manages syndications; depending on the deal, the SEC may require individuals to be classified as either a sophisticated or accredited investor.”
While you may not be required to have any experience to get started, having experienced partners by your side to mentor and guide you through the entire process of closing a deal can potentially be a tremendous help in getting to where you want to be.
One such experienced mentor is Mark Kenney, founder of Think Multifamily. He has a list of 10 reasons to invest in multifamily real estate, and it is definitely worth your time to read it.
In summary, becoming a multifamily real estate syndicator is a way to crowdfund among accredited and sophisticated investors, scale down costs, scale up cash flow, fast-track your way to wealth, and ultimately Escape From The West.