Syndication vs Sole Ownership

[Gustavo Gonzalez]

Hi BP Community:

First order of business, my apologies as I'm not trying to act naive but I'm wondering why everyone is talking about apartment investing syndication as the best way to enter the multifamily unit space?  I do get that under a syndication larger deals (i.e., number of units and high price listings) can be taken down but what I'm wondering is how profitable is this once everyone takes their share?  I read and listen to different sources that of course talk about syndication for  150 +, 200 + and get how one individual unless your exceedingly wealthy can't do those deals alone.  But what if an individual just single-handedly takes down the smaller apartment buildings say 20-40 units?

I have some money set aside and have been monitoring the 20-40 unit apartment space but it seems that the new buzz word is syndication.  Am I missing the obvious?

Gus

[Ivan Barratt]

@Gustavo Gonzalez Great Question! I started with small mfam and scaled from there. I have owned duplexes, 6 units, 15 units, 30, 35, 60, etc and I have sold nearly all of it.  Now I own 12 site managed communities that are 160 units to 314 units via syndication (where my partner and I are the sponsors). We own a vertically integrated real estate firm with 80 employees and will surpass 200 million in assets under management by the end of this year.

If you want to do what I do absolutely start small and use your own money before taking others' capital.  If you don't want to lose money along the way and be truly passive; find someone else's platform where you can reap more consistent returns. From there focus on what you do well and get paid for and funnel as much of those funds into income property run by someone else. :)

Small mfam is TOUGH!