Projected Realistic Returns For Multifamily Syndication Investments

[William Coet]

Hello,

When investing with an experienced multifamily sydicator, what are the realistic returns for a 5 year investment of 100k?  One operation I contacted is projecting a return of 200k (100% return in 5 years) which seems surprisingly good. I do not know if this is realistic or farfetched.

Thank you

[Ian Ippolito]

Quote from @William Coet:

Hello,

When investing with an experienced multifamily sydicator, what are the realistic returns for a 5 year investment of 100k?  One operation I contacted is projecting a return of 200k (100% return in 5 years) which seems surprisingly good. I do not know if this is realistic or farfetched.

Thank you

 William, I see hundreds of syndication deals a month (and crowdfunding deals which are essentially the same thing but are allowed to market on the Internet).

Like in any other type of investment, projected returns vary greatly on how much risk the investor is willing to take. So more risk means a higher projected return (but of course also increased chance of not achieving it).

For example there are four different major strategies in real estate investing. And in order of risk they are core, core plus, value-added, opportunistic. A 100% projected return in five years would be ludicrous for a core investment. On the other hand, it could be within normal ranges for certain opportunistic investments (and perhaps even aggressive value-add).