FAQ
While an apartment complex is typically defined as 5 or more units, investing in large apartment complexes (100+ units) offers true benefits.
Safety of Capital: These are real assets based on fundamental housing need. When invested in right growth markets and managed well, they offer safety during economic downturns. Regardless of economic scenario, everyone needs a roof over their head.
Cash flow: Large stabilized apartment complexes offer consistent cash flow.
Capital Growth: Unlike single family homes, apartment complexes are valued based on their net operating income. Value goes up with rent growth and expense reduction. Rents have only been going up over the years.
Inflation Hedge: They are great assets to hold and beat high inflation. Rents go up in high inflation scenario and thus forcing values to go up
Tax Benefits: They offer depreciation and other tax benefits maximizing your returns.
Leverage: Some of the most attractive debt terms are available to apartments compared to any other commercial real estate classes. No personal liability to passive investors.
Apartments Demand: As per National multifamily housing council study, U.S needs 4.3 million more apartments by 2035 to meet the demand for rental housing. This includes 600,000 units to fill the shortage from underbuilding after the 2008 financial crisis. Underproduction of housing has translated to higher rents especially in high growth markets like Texas. In addition, higher single family home values have increased affordability gap between owning vs rent pushing the demand for rental housing.
All these factors make apartments a safe and lucrative investment.
Syndication is where a group of people pool their money to acquire large assets. An experienced team like Masina Multifamily will identify strong investment opportunities that meet their stringent acquisition criteria and present it to group of investors. We will together buy these assets. Masina Multifamily will deploy their own capital in every asset along with our passive investors.
The Sponsors will handle the transaction, guarantee the loan, implement the business plan, and manage the asset to achieve the projected returns. Sponsors get compensated with additional equity in profits for the services they provide. Passive investors will be hands off, do not have the loan liability and headaches of managing the property.
Syndications are governed by SEC (Security exchange commission) rules and regulations. Masina Multifamily has high ethical standards, maintains transparency, and provides monthly financials and performance reports. This model is a win-win and works best for busy working professionals like Doctors, Engineers, and other high earning people that want to build wealth for their families.