Real Estate Syndications
Apartment investing is commonly referred to as a real estate syndication. A syndication is essentially a real estate investment where a group of individuals pool their money and purchase a property.
As a passive investor in a real estate syndication, you don’t have to do any of the work. You invest your money and start earning. It’s a great way to invest in real estate without having to do it alone.
Why Invest in Apartments
Get rewarding returns so you can continue to grow your wealth.
Get all the benefits of apartment investments, including passive income, without any of the hassles of managing the property.
Diversify your portfolio by investing in real estate.
Apartments are a proven, stable, and inflationary resistant asset class. We strategically source multifamily properties that are designed to perform well in all market cycles.
Eliminate the stress of the stock market roller coaster.
Small investors can pool capital to acquire large apartments instead of only the ultra wealthy getting these opportunities.
Real estate appreciates over time, which increases the value of your equity and ultimately, your wealth.
Many Funding Options
As an investor you have multiple funding options: Cash, Self-Directed IRA, Solo 401K, SEP IRA, SIMPLE IRAs, Trust and LLC.
How it Works
Getting Started is Simple
Join the Investor Circle (it's free!) This will give us a chance to connect and help us understand your financial goals.
Q: What returns should I expect on my investment in apartments?
A. The exact percentages will vary from one investment to the next. We’ll make sure the projected returns meet your criteria before you invest. You will also receive a portion of the profits from the sale of the asset at the end of the project.
Q: When and how do I get paid?
A: Money is distributed to the investors on a quarterly basis based on the profitability of the apartment. It will be directly deposited into your bank account or retirement account.
If the property requires renovations or repositioning it could be 12+ months before distributions begin. It is dependent on the business plan of the specific apartment.
Q: How long should I plan to have my money invested?
A: The term of investment is dependent on the business plan which is specific for each apartment. The hold period can range from 4-6 years.
During this time, you will receive cash flow returns, but your initial investment cannot be withdrawn.
Q: What is the minimum investment amount?
A: The minimum investment can vary. Typically, it is $50,000, $75,000 or $100,000 depending on purchase price of the apartment.
Q: What is an accredited investor? Do I need to be one?
A: An accredited investor is someone who meets certain requirements regarding income and net worth, based on Securities and Exchange Commission (SEC) regulations. This is so that the SEC can ensure proper protection for all investors.
To be an accredited investor, you must satisfy at least one of the following:
- Have an annual income of $200,000, or $300,000 for joint income, for each of the last two years, with expectations of earning the same or higher income this year.
- Have a net worth exceeding $1 million, not counting your primary home.
However you do NOT need to be accredited to invest in all our apartment deals.
You can invest with us if you are considered a sophisticated investor. Which means you actively manage your current investment portfolio and are familiar with thoroughly evaluating an investment’s value.
Q: What is a real estate syndication? How does this work as a passive investor?
A: A syndication is simply a pooling of resources, whether time, money or otherwise. It is much like crowdfunding. A real estate syndication is a way for your money to be pooled with other investors to jointly purchase large multi-million dollar apartment complexes.
As a passive investor, you simply contribute money to apartment syndication and enjoy the benefits of direct ownership without any of the property management responsibilities.
Q: What types of apartments do we buy?
A: We focus on B and C Class multifamily apartment communities with 100+ units so that there is sufficient scale to benefit from professional property management. We also closely evaluate the population, job, and income growth trends as well as crime trends and fundamentals of housing supply and demand in the market.
Identifying the “right” deal in which to invest can be a long process typically involving reviewing and analyzing many, many deals before finding one that meets our criteria for investments.
Q: Are multifamily apartments recession resilient?
A: Yes, we believe so. People will always need places to live; therefore, the demand for housing — particularly affordable and high-quality housing — will remain high even during a downturn.
We invest in solid B and C Class apartment communities located in good neighborhoods. Investments in this asset class tend to be lower risk because the tenants are more financially secure.
This investment strategy ensures that occupancy and Net Operating Income (NOI) will remain high even during a recession, mitigating risk and protecting your investment.
Q: What are the tax advantages of investing in apartment syndications?
A: Please consult with your tax professional or CPA to obtain the most accurate tax information for your unique situation.
As a real estate syndication investor, you’ll typically gain the tax benefits of property ownership, including depreciation and cost segregation, which can help lower the taxable passive income you receive.
Each year, you’ll receive a Schedule K-1 tax form to include with your tax filings. This form reports your income and losses for the investment.
Q: Why do you partner with other real estate businesses on deals?
A: Finding deals that work from a returns perspective is a key challenge. There is a lot of competition to purchase large apartment complexes which include Wall Street investment firms.
Therefore we are constantly in contact with a number of trusted partners who may have access to deals that we like. When presented with such a deal, we do our own due diligence on the market and financials of the deal before deciding to partner on a specific deal.
Q: What are my funding options?
A: You have many funding options when investing with us. Of course, you can invest with cash but also with your Self-Directed IRA, Solo 401K, SEP IRA, Simple IRA, Trust or LLC.
Q: What are the typical communications sent out after a deal closes?
A: For each deal, you will receive monthly updates on the status of the business plan which includes the financial performance and status of any improvements to the apartment.You will be consistently informed of what is happening with your investment dollars.
Q: How do I get started?
A: Getting started is easy!
First, download and review our free Rethink Your Retirement Guide to learn the basics of apartment investing. When you are ready, Join the Investor Circle.
It is free and there are no commitments to invest. When we find an investment opportunity that matches your objectives, we’ll share the details with you!
Close All Sections
A: It is because the cost of money is not our main concern. The availability is much more important. Banks take several weeks to process loans. If we cannot obtain the money quickly to win deals to buy and fix the house, we cannot make a profit.
Real estate investors buy distressed properties at steep discounts. The profit margins are typically significant therefore they can afford to pay high interest rates to private lenders.
It is a win-win situation for everyone. The borrower can close more deals and the lender receive high returns on their money. It makes for a better, longer, ultimately much more profitable relationship for all of us. Our hope is that you will be so ecstatic you will tell all your friends and family so they will invest with us too and grow their wealth like you.
Recent Apartment Building Investments
Kings Tree Apartments
Orange Park, FL
Villas at Cedar Creek Apartments
Park Place Apartments
Orange Park, FL
Millington Oaks Apartments
Twin Oaks Apartments
Free your retirement funds from the stock market and invest in real estate! Join the Investor Circle to get real estate investment opportunities. Diversify your portfolio, get great returns and earn passive income right here with Hansen Holdings!