Equity

EQUITY

We know that combining equity into a syndication affords someone the ability to acquire more real estate more quickly with a whole lot less work!

Think about the dollar growth opportunities we illustrated with $100K difference based on a simple purchase of a low priced property.  Now change the purchase price to $20M.  That 5% growth rate makes a $5M impact on returns.  That same 100K would represent approx 1.4% ownership or $70K in growth plus the same share of free cash flow. Combining the two delivers a realistic forecast of $110K in returns plus the initial return of capital.  The other factors remain unchanged; when your valuation basis grows like this, so does your return.  Simple math used to your advantage by combining your equity into passive investments can yield very powerful returns over time. 

Adding upon economic benefits of leveraging other’s skill sets, knowledge and ability, equity also compounds this value.  By combining investment dollars with like-minded professionals, you are able to realize SCALE 

Surely, after learning about the benefits of SCALE in Multifamily, you’re starting to ask yourself why haven’t you done this earlier?