What Is an Apartment Syndication
Apartment syndication is a formal arrangement in which many investors (be it individuals or businesses) come together in investing in an Apartment complex. By this arrangement it is possible for each one of those participating in the syndication to invest and own much larger properties than they can invest by themselves.
Unlike in the past when big real-estate syndications were possible for only the wealthiest and well-connected individuals now anybody can participate in the present Apartment syndications and enjoy the fruits of a common investment and secured regular and repetitive income. This is made possible with the emergence of the crowd funding concept in real estate since the passing of the JOBS Act in 2012.
In Apartment syndication, the parties concerned are the sponsor of the project and the group of investors who participate in the syndication process. Usually, the sponsor invests less and takes control of the Apartment complex and manages the whole property on behalf of other investors who have contributed to the syndication.
Rental Income and property value appreciation are the main incomes that are derived out of Apartment syndication, and the income is distributed either on a monthly or a quarterly basis depending on the share of amount invested by them in the project.