Iron Point Capital

Why invest in a Multifamily Syndication?

Investing in real estate can be very expensive. Multifamily Syndication gives you the opportunity to invest your money in large assets like an apartment buildings that provide economies of scale and are professionally managed. Here’s what’s in it for you when you invest your money in a multifamily syndication as a passive investor.

Cash Flow

Syndications allows you to earn an income without putting any time in managing the property (think purely passive). With the general partners doing all the work, from due diligence to property management, you won’t have to worry about a thing. Passive income is the ultimate way to financial freedom.

Tax Advantages

Multifamily investors are allowed to write off 1/27 of the value of the building each year as an expense. Additionally, you can perform a cost segregation analysis, which results in a depreciation of 90% of the apartment building’s value over seven years.

Risks

Even though you are a partner in a multi million dollar asset, being a Limited Partner shields you from any loan liability or any other legal issues that may come up with the property.

OPS

You’ve heard of OPM (Other People’s Money) but being a passive investor allows you to benefit from OPS (Other People’s Skills). You just have to do your homework in vetting the syndication team and the deal before you decide to invest.

Sadly, most banks are continuing to pay interest on savings that's some small fraction of 1%. How small? According to the FDIC, the recent averages are 0.09% for savings accounts. With the inflation rate just north of 2%, you're losing money every day you have it sitting in the bank!

Yet, many people believe that saving in a bank account and collecting interest is beneficial to their future, But the key word is FUTURE. If you don’t invest wisely, someone else will. If you’re ok with a 1% return on your investment and have no aspirations of growing your wealth, then by all means, leave that money in a bank account and let the bank use your money to multiply theirs.

It's time to fire your bank, and find someplace else to put your money. Consider Multifamily Real Estate. Multifamily properties offer the best combination of high yields and low risk. With disciplined buying, conservative use of debt, and diversification of assets, you can achieve consistent quality returns of 10%+.

Additionally, demographic and lifestyle trends make multi-family homes more attractive:

✔️Baby Boomers are downsizing.
✔️More people value mobility and flexibility.
✔️Millennials have lower homeownership rates.
✔️Rentership is on the rise in most areas of the country.

HOW WE SELECT A TARGET MARKET:

Before electing to invest in a target market, our team performs exhaustive demographic and economics analysis to ensure our investments are located in safe, stable markets with growing population, growing jobs, and diverse employment. For each target market we plan to invest, we produce a market summary report using the following criteria....

1) ECONOMIC CHARACTERISTICS: 5-Year Unemployment, Job Diversity, Top Industries and Employers.

2) POPULATION: 5-Year Population Growth and Age Range

3) HOUSING: 5-Year Median Rent, Rental Vacancy Rates, and Building Permit Data.

4) MISCELLANEOUS: Awards and Recognition, Commuting, Amenities, Crime, and Schools.