Syndication for Busy Professionals

Multifamily syndications as a passive investment are one of the few great investment compromises for individuals looking to exponentially grow their wealth without any managerial or hustle input. Offering busy professionals great returns over the holding period while allowing them to leverage their time to focus on their careers.

What is Multifamily Syndication?

It is a real estate acquisition strategy for investors to pool capital contributions and expertise from other investors so as to acquire and manage large property assets that would otherwise been unaffordable for an individual investor to purchase on their own.  Basically this strategy allows many more investors to unlock the benefits of real estate investing and achieve massive wealth generation without having to invest millions and millions of their own dollars.

Why Choose Passively Investing In a Syndication?

Active investors (General Partners / GPs) are savvy investors who have the time and expertise in acquiring, managing, and disposing of large real estate properties.  But even after leveraging the property with debit, they often find themselves lacking the funds to acquire the deal.  On the flip-side, passive investors usually cannot offer the time or expertise to be immensely involved in such a deal, but are looking for reliable investments to grow their wealth and/or just learn the ropes of active investing.  

This is where you as a passive investor come into play and get to reap all of the benefits.

Active investors need your money in order to close on a deal.  And because of this, they are willing to give up a significant portion of the capital shares to passive investors (Limited Partners / LPs), and a great return on investment in order to make the deal happen.  This means that you do not have to worry about having the knowledge or giving up valuable personal time at all!  All you have to do is bring money to the table.

So, what does the capital structure look like and what are the typical returns?

Active investors will typically put in 10% to 30% of their own capital, allowing the passive investors to take advantage of the remaining 70 to 90% of the shareholder stake.  Typical capital contribution for a passive investor is anywhere between $50,000 to $75,000.  Sometimes $100,000 if demand is really strong.

A split of profits between the General Partners and Limited Partners is agreed upon and placed into the entity documents known as the Private Placement Memorandum or PPM. Investors in multifamily real estate syndications make money via cash flow, appreciation, and principal pay down and these profits are split based on the pre-arranged equity structure mentioned above.  Many syndications will offer a “Preferred Return” or “Pref” of 7% to 9% which guarantees a return to investors before the General Partners even get paid on a deal.  Typically cash flow profits are given out in distributions via quarterly payments with a lump sum payment including the return of the original investment upon sale of the asset.  Investors can typically expect 9-10% in annual returns on investments, and a total investment return of 100%+ after the 5 to 7 year investment period.

In Conclusion

Passively investing in a multifamily syndication can provide you great leverage in achieving great returns in a deal without any responsibility or time spent in managing the investment property.

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Lydia Essary

Lydia Essary

As a physician dermatopathologist, Lydia’s focus is to provide accurate diagnosis at the microscope for the care of her patients. As an investor, she is committed to raise awareness of the tremendous tax advantages of apartment investing and to help her colleagues and any investor generate passive income streams.

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Brad Sumrok
Strategic Advisor

Brad Sumrok is a highly successful and experienced apartment investor, having owned 51 apartment buildings totaling more than $1 billion in value. Of those buildings, 21 went through the full cycle of acquisition, renovation, and sale, generating significant profits for his investors.
In addition to his own success as an apartment investor, Brad has also helped over 500 students increase their net worth by over $1,000,000 and quit their jobs through his education and training programs. He is the founder of the Sumrok Apartment Investing Mastery Mentoring Program, which provides in-depth training and resources for those looking to get into the apartment investing space. With his wealth of knowledge and experience, Brad is a valuable resource for anyone looking to succeed in the world of multifamily investing.

Dianne C. Essary
Marketing Manager & Assistant Underwriter

Dianne is responsible for developing marketing strategies, generating new business leads, and analyzing trends. Dianne has earned her BBA in Management from the University of Texas at Arlington. In addition, Dianne has experience conducting analysis and pro forma creation on multifamily real estate investments.

Aaron E. Essary
Director of Acquisitions & Asset Management (Acquisition Team)

Lift Equity welcomed Aaron Essary who joined the team in 2022. Aaron oversees all the deal sourcing, negotiation, acquisition, and portfolio management. Aaron owns his own real estate company and brings contract negotiation and serves as lender liasion. In terms of financing, Aaron has extensive experience in budgeting and expense control. Aaron has served as Accounting Manager in the private sector for the last six years. 

Aaron earned his BBA in Finance from the University of Texas. He is an innate investor and has been investing in real estate since 2015. 

H. Frank Essary MBA
Founder, President

H. Frank Essary is the founder and president of Lift Equity who oversees all aspects of the business operations including property acquisitions, asset management, and accounting.

Frank is a lifelong real estate professional and has owned single-family homes and duplexes in Southern Illinois along with being a successful landman. He relocated to Texas where he was introduced to multifamily investing in 2012 and has since solo-owned and asset-managed a 118-unit property in Texas which he later sold with high capital gains. He later joined the Sumrok Apartment Mastery Personal Mentoring Program in 2019 and is evaluating properties for syndication or joint venturing.