Founder of Apex, a private equity fund specializing in acquiring the best multifamily assets to ensure strong returns for investors, started his real estate journey in single-family real estate as a wholesaler. After realizing he was selling away equity instead of building his own portfolio, he transitioned to multifamily real estate to create passive income and financial freedom.
Syndicating large apartment buildings was the first step in the founder’s multifamily real estate journey. This involved finding opportunities, getting them under contract, and raising money to acquire the properties by a set date. While this hands-on approach may not be as passive as some would like, it can be a great option for those who have the time to be actively involved in the process.
Investing as a limited partner in syndications is another common way people start investing in multifamily real estate. This option is ideal for high-net-worth and high-income individuals who have the money to invest but lack the time to be actively involved in the process. The minimum investment for these opportunities is typically $50,000-$100,000, as they are only available to accredited investors.
A limited partnership fund model allows investors to invest in a fund instead of a single syndication, spreading their investment among multiple properties to mitigate risk and offer a blended return rate. However, there are risks involved in this strategy, such as investments being held longer due to acquisition and hold times of properties, or funds struggling to find suitable opportunities to deploy capital.
Choosing the best option for investing in multifamily real estate depends on various factors, such as personal preferences, past experiences, occupational background, time availability, and financial goals. Each individual investor must assess their situation and determine which approach aligns best with their objectives. The ultimate goal for many investors is to generate enough passive income to achieve financial freedom.
It is important to note that the information provided is not investment, tax, or financial advice, and individuals should consult with a licensed professional for guidance specific to their situation. The Forbes Business Council, the foremost growth and networking organization for business owners and leaders, offers valuable insights and resources for entrepreneurs looking to grow their businesses.
