Shares in private apartment complex?

Question

I have owed and rented a few single family homes over the last 10 years, and have found them to be a lot of work, with a general 10% return.

Does anyone know how I can buy a interest, or share in an actual apartment complex, but not a REIT? I have the cash go put down, just looking for a partner to handle the day to day. Essentially I want to be a silent partner.

Thanks

Nick B. · Answer

Search BP for "syndication" and you will find plenty of reference to what you want to accomplish.

Alina Trigub · Answer

@Adam Steinberger Essentially what @Nick B. pointed out to you, there're plenty of  BP posts on being passive investor in syndication. You have to search through them and read up on the topic.

Here's the introduction into it for you: https://www.biggerpockets.com/member-blogs/10850/84064-what-type-of-investor-to-be-when-i-grow-up-active-or-passiv

Ronan Donnelly · Answer

@Adam Steinberger I followed a very similar path. I build up a portfolio of SFH’s but decided to stop growing because it wasn’t passive enough. I subsequently invested in  a number of income funds which were entirely passive but all of the income came through as ordinary interest income and I didn’t enjoy tax advantages like long term capital gains and depreciation. I eventually found investing in syndicated deals to be the perfect combination of being passive and giving me the benefits of owning physical real estate. Feel free to DM me if you have any specific questions that you think I can help with. Good luck, Ronan

Taylor L. · Answer

Great posts here so far. The answer is yes, you can. The caveat is, it's a little bit tougher than buying a REIT, there are more rules, and it's nowhere near as liquid as a REIT.

John Fortes · Answer

All great responses above. I understand that you want to be a silent (passive) investor. There is a bit to it that goes into it as you should learn how to vet the sponsor as well as understand the whole process. You don't need to know everything but enough to be dangerous and comprehend. Most important thing is you want to trust who you are placing your capital with so vet them out and do some interviews. Get to know them and then learn their processes to be comfortable with how they communicate. Good luck in your passive investing journey and happy investing!

Andre Jernigan · Answer

@Adam Steinberger The answers here covered everything I would say. As Taylor said, there’s a few more rules and isn’t anywhere near as liquid as a REIT but like Ronan mentioned it’s passive enough and gives you the benefits of owning a physical property.

Shares in private apartment complex?

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