Multifamily real estate refers to residential properties with multiple units, designed to house multiple families. Generally speaking, these properties can be anything more than one unit, such as:

1. Duplexes and Triplexes: Buildings with two or three separate units.
2. Fourplexes: Buildings with four separate units.
3. Apartment Buildings: Larger structures with multiple units, often ranging from small buildings with five units to large complexes with hundreds of units.
4. Condominiums: Individually owned units within a larger building, where common areas are shared among the residents.
5. Townhouses: Connected homes that share walls with other units, but each is typically a separate, individually owned property.

Why should I invest in multifamily Real Estate?

1. By investing in multifamily real estate, not only do you get to invest passively, but you also get to invest knowing that your investment risks are reduced because of the diversity of tenants in apartment complex communities

In real estate, a syndication is a partnership between multiple investors who pool their resources to acquire, manage, and eventually profit from a property or a portfolio of properties. This collaborative effort allows individual investors to participate in larger and often more profitable real estate deals than they could afford or manage on their own.

Key Components of a Real Estate Syndication:

1. The Sponsor (or Syndicator) – Us
   • The sponsor is the person or company that organizes the syndication, identifies the investment opportunity, secures financing, and manages the property.
   • They are responsible for the day-to-day operations, such as property management, tenant relations, and handling financial and legal aspects.
   • The sponsor typically invests some of their own money in the deal to align their interests with the investors and earns compensation through management fees and a share of the profits.
2. Passive Investors – You
   • These are individuals or entities that contribute capital to the syndication but are not involved in the active management of the property.
   • Passive investors earn a return on their investment through a share of the rental income and profits from the eventual sale of the property.
   • They benefit from the sponsor’s expertise without having to manage the property themselves.
3. The Property
   • The syndication’s investment property can be a multifamily apartment building, a commercial property, or a portfolio of properties.
   • The goal is usually to acquire a property that has potential for value appreciation, either through market growth, property improvements, or better management.
4. The Investment Structure
   • Equity Syndication: In an equity syndication, investors pool their money to purchase the property outright. They own shares in the property and receive returns based on the property’s income and eventual sale. Here at MTC, we use an equity syndication structure.
5. Returns and Distributions
   • Preferred Returns: Some syndications offer preferred returns to investors, meaning they receive a certain percentage of returns before the sponsor takes their share.
   • Profit Splits: After preferred returns, the remaining profits are typically split between the sponsor and the investors according to an agreed-upon ratio, often 70/30 or 80/20 in favor of the investors.
6. Exit Strategy
   • Syndications usually have a defined investment period, often ranging from 3 to 7 years. The exit strategy might involve selling the property, refinancing, or holding it long-term depending on market conditions and the goals of the syndication.