Top 3 Benefits of Investing in a Private Equity Multi-Family Real Estate Syndication

Top 3 Benefits of Investing in a Private Equity Multi-Family Real Estate Syndication

There are several benefits of investing in multi-family real estate through a Private Equity Real Estate Syndication like Mission Bay Capital Partners.  While we have covered many of the points in previous articles, the following are the top 5 benefits we feel are so noteworthy for the investor that we don’t want anyone to miss opportunities available to them in syndicated partnerships. 

First, it is important to note that in order to invest in a Private Equity Syndication the Securities and Exchange Commission (SEC) requires that the investor meet certain qualifications depending on how the offering is structured.

The two classes of investors are  “accredited”  and a “sophisticated investor”. Watch to learn more about each of these and why Mission Bay Capital Partners normally structures their deals such that they are available to a broader group of investors.

Access to Quality Multi-Family Properties

Because a syndication is pooling investor’s money, as well as a portion from the private equity firm, they are able to buy properties that are institutional quality and not available to all but the extremely wealthy, pension funds, and investment firms.  

The focus is on multi-family properties of 100 to 200+ units, and oftentimes a Real Estate Syndication firm is offered deals that aren’t even on the market, so private equity investors are getting access to higher quality and larger properties than they could ever obtain on their own. 

Leverage of Money and Leverage of Expertise

The Syndicator, as the General Partner in the partnership, will take care of arranging and obtaining financing for the investment property and by using this financial leverage, the returns are enhanced for all parties involved.

When partnering with a Private Equity Syndicator an investor is able to leverage not only the financial aspect of the property with a commercial real estate loan – but the expertise, technology, vendors, and their network of real estate experts in all the various areas.  

A Syndication firm like Mission Bay Capital Partners looks at hundreds of potential deals each year, runs economic analysis and models on properties with potential and may write dozens of letters of intent to purchase in order to find several of the “best” deals for its investors. 

Mission Bay uses conservative underwriting in its projections for a property to ensure our investors will get superior returns.

The Investor’s and Syndicator’s Interests are Aligned

The Syndicator (General Partner) will also have invested their own money, as well as a great deal of time, in each real estate deal and, therefore, has a vested interest in the property performing as projected.  

Additionally, the structure of the private equity partnership is such that the financial incentives of the Syndicator and Investor are aligned. For example, the return structure is usually such that the investor receives a “Preferred Return” before the Syndicator gets a share of the income, giving the investors preferential treatment.

Mission Bay Capital Partners offerings are structured such that an investor gets their money back plus a return before they, the Syndicator, are paid.

These are an example of why so many of our investors continue to invest with us on multiple deals

Do you desire a stable investment with passive income along with capital appreciation? Mission Bay Capital Partners is an experienced Private Equity Real Estate Syndication company that will be happy to discuss the nuances of multi-family real estate investing as well as all of its benefits. 

If you would like to learn more, schedule a call with Mission Bay Capital Partners to learn more about investing in multi-family real estate and learn about upcoming opportunities for investment.  We make investing simple, transparent, and profitable.