Real estate syndication is a way for investors to pool their financial and intellectual resources to purchase a property that is much larger than they could possibly afford or manage on their own. By investing in commercial multi-family apartment syndications, investors can participate in otherwise unattainable real estate investment opportunities. As an investor, you would obtain an ownership slice of a large, income-producing apartment complex managed by professional, on-site property managers.

The minimum investment can vary from project to project, although the typical minimum investment is $25,000.

An accredited investor is someone who meets certain requirements regarding either income or net worth, based on Securities and Exchange Commission (SEC) regulations. This is so that the SEC can ensure proper protection for all investors, especially those without the experience or knowledge to protect themselves.

To be an accredited investor, you must satisfy at least one of the following:

1. Have an annual income of $200,000 (single), or $300,000 for joint income, for each of the last two years with expectations of earning the same or higher income this year.
2. Have a net worth exceeding $1 million, not counting the equity in your primary home.

Yes. As long as you meet the SEC’s requirements, you can invest through an entity.

Our goal at Maple Capital Partners (MCP) is to invest in properties that return 7-9% in cash-on-cash annually and have an internal rate of return (IRR) of 14-18% for the duration of the hold period.

Most projects plan for a 5-10 year hold period, so you should plan to have your money in the investment for at least 5 years. During this time, you will receive regular quarterly cash-flow returns on your invested capital. Your initial investment cannot be withdrawn unless a life-changing event occurs.

We understand that 5 years is a long time. Many things can happen during that period. If a situation arises that requires you to receive your initial investment back, we will work with you to come up with a solution that works for both you and the operator(s). That said, we cannot guarantee that you will find a buyer for your ownership stake and this should accordingly be viewed as a highly illiquid investment.

We target a 5-10 year hold period on all of our investment opportunities. This provides us enough time to execute our business plan, stabilize the asset, and take advantage of an opportunistic sale should market conditions warrant it. Some investor principal could be returned within the first 2-5 years upon refinancing if market conditions permit. During the hold period, it is important to understand that your investment is illiquid and will remain so until we either refinance or sell the property.

Quarterly distributions are the standard, however each syndication is its own separate business with a specific strategy and return profile based on the business plan for the asset. That being said, during certain market conditions, the temporary discontinuation of quarterly cash payments may occur in order to preserve cash and protect the asset/the investor’s capital. First and foremost in our minds is capital preservation. Only once this requirement is satisfied do we look to generate returns on that capital.

We rigorously stress test our assumptions to ensure that we can deliver on our business plan. In addition to consulting with our partners in advisory, brokerage, property management, lending, and insurance, we study historical market and operating data in order to mitigate investor risk. We are constantly refining our assumptions based on the latest data. When underwriting, we typically run sensitivity analyses through our model to examine the likelihood of potential outcomes. We test a variety of scenarios by varying inputs such as vacancies, cap rates, rents, expenses, capex required, and more. These scenarios help us evaluate an investment’s risk/reward profile which helps us communicate the investment more effectively and plan contingencies.

Consult with your CPA for specifics on how this type of investment can impact you based on your unique financial situation. That said, apartment syndication is generally very tax-efficient and benefits from the tax-advantaged nature of property taxes, loan interest, and depreciation. We also utilize cost segregation to accelerate the depreciation of certain parts of the investment (see below for a brief introduction to cost segregation). Following the end of the calendar year, you will receive a K-1 from the partnership that can be supplied to your CPA.