How To Participate in Our Multifamily Syndications

Our multifamily syndications are one of the most popular investments we offer. Not only do they have the highest passive income rating (very little work for the returns), but the returns PLUS tax benefits make this a HUGE win for investors.

What is a Multifamily Syndication? A syndication is when a group of people get together to take part in a larger transaction than they could do by themselves, in this case, a large multifamily property. Syndications are regulated by the SEC which means there are rules on who gets to participate. In most instances, Freedom Capital Investments creates 506(b) funds when we do syndications. What this means is that both accredited and non accredited investors can participate so long as we have a relationship with you prior to you investing with us.

If you’d like to learn about the differences in fund types 506(b) vs 506(c) or the difference between an accredited investor or a non accredited investor, please visit our FAQ page here.

Here are the highlights of a multifamily syndication:

  1. Typically you’ll receive the highest rates of return through syndications after considering your rate of return plus the tax benefits.
  2. Many times as an investor in a multifamily syndication you will hear the term “Preferred Returns”. This means that you, as a Limited Partner, will receive your returns before the General Partners receive any of their returns.
  3. Tax Benefits sometimes in the range of 30-40% of what you invest (meaning if you invest $100,000 then you will be writing off $30,000-$40,000).
  4. Each fund will have different term lengths with no firm date as the exit. Some terms may be 2-3 years after which time, much of your principal will be returned to you and what remains will continue to earn interest until you’re cashed out completely. Other term lengths can be a period of 5-7 years however the general partners could cash you out sooner or later (via the sale of the property) depending on the market.
  5. Minimum Investment changes depending on the fund, but it’s likely that most will have a minimum of $50K – $300K.
  6. Resources of funds acceptable are cash, entities, retirement accounts, whole life insurance polices and more!

Advantages to Investing in a Multifamily Syndication:

  • Highest Returns: In a Multifamily Syndication Fund, you’ll typically receive the highest rates of return through syndications after considering your rate of return plus the tax benefits.
  • Tax Benefits: Tax Benefits sometimes in the range of 30-40% of what you invest (meaning if you invest $100,000 then you will be writing off $30,000-$40,000).
  • Diversity: Many investors who already invest as private lenders and in debt funds like the ability to diversify by being in a multifamily syndication.
  • Redeployment: With Freedom Capital Investments, as soon as you receive your return, we are preparing the next investment opportunity in the case you want to redeploy your funds.
  • Highest Passive Income Rating: In a Multifamily Syndication, you do your due diligence one time, sign paperwork one time and then you earn, earn, earn for however many years the syndication lasts. Your investment portal which is managed by the investment teal will provide updates and distributions with no work on your part.

Disadvantages to Investing in a Multifamily Syndication:

  • Term Length: Every fund will have different timelines, many syndications being 2-7 years. If you prefer lower effective returns for the trade of being more liquid than this term length would be a disadvantage.

If you are looking to protect your capital, enjoy passive income, and grow your wealth over time – you are in the right place. We look forward to helping you build passive income so you can live life on your own terms.

Freedom Capital Investments is free and open to everyone. Join thousands of people just like you that are discovering the amazing benefits of investing passively in real estate.

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