Strategy

What is Multifamily Syndication?

FEBRUARY 29 2024
Written by John Makarewicz

Introduction:

At its heart, multifamily syndication is a simple and powerful concept: it’s a way for a group of individuals to pool their resources together and achieve something far greater than they could alone. Let’s break it down and see how it works:

In a multifamily syndication deal, there are typically two key roles: the investor or Limited Partner (LP), and the sponsor or General Partner (GP). As an investor or Limited Partner, your role is straightforward and passive: you’re providing the capital necessary for the investment deal. You’re the fuel that powers the engine.

The sponsor, or General Partner, on the other hand, is like the driver of the vehicle. They’re the ones who locate a promising property, acquire it, manage it, and ultimately sell it. They’re making the day-to-day decisions, navigating the market fluctuations, and steering the investment toward profitability. Faris Capital Partners is a General Partner.

 

Apartment Group Investing

 

In a value-add strategy, the aim is to locate an underperforming property—a property with potential that hasn’t been fully realized yet. Perhaps it needs renovations, better operations, or improved management. No matter the circumstances, Faris Capital Partners operates with excellence to ensure maximum financial returns. By investing capital into these improvements, the value of this property can be significantly increased. This, in turn, allows for higher rental rates and, ultimately, a more profitable investment. It’s the process of creating value where there is untapped potential, making the pie bigger for everyone involved.

 

Our expertise lies in identifying these underperforming, ‘diamond in the rough’ properties, unlocking their potential, and transforming them into high-performing assets. Upon closing on a new apartment complex, our experienced team leaps into action with a meticulously considered ‘Full Out® 28-Day Transformation Plan’ designed to rapidly enhance the appeal and performance of our multifamily properties, ensuring our investors enjoy the benefits of solid cash flow and long-term capital appreciation.

 

At the time of publication, our average investor has invested $200,000 in our deals meaning on a 10MM equity raise, there are only 50 spots available and spots fill up quickly!

Apartment Group Investing

By participating in a multifamily syndication deal, you get the best of both worlds: You’re able to benefit from the substantial returns that real estate investing can offer without the need to become a real estate expert or a full-time landlord yourself. You contribute the capital, and we handle the rest. It’s a partnership that has the potential to deliver a future of financial stability and growth.

 

Explore Opportunities with Faris Capital Partners. Are you an accredited investor looking to delve into apartment group investing in multifamily properties? Click here to arrange a discussion with our Investor Relations team and learn more.

Are you curious about what sets Faris Capital Partners apart? Download our information booklet to explore how we make it all possible and create value for our partners. Click here to access the booklet!

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