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Updated almost 4 years ago on . Most recent reply

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Joe S.
  • Investor
  • San Antonio
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How do you do multi family without Syndications??

Joe S.
  • Investor
  • San Antonio
Posted

How can someone scale up in multi family from single family without syndication and partnerships? ( I’m not talking about 2-4 units)

I did the partnership thing when I first started out and I can assure you that I would prefer to own properties with just my wife and I.

  • Joe S.
  • Most Popular Reply

    Account Closed
    • Investor
    • Scottsdale Austin Tuktoyaktuk
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    Account Closed
    • Investor
    • Scottsdale Austin Tuktoyaktuk
    Replied
    Originally posted by @Joe S.:

    How can someone scale up in multi family from single family without syndication and partnerships? ( I’m not talking about 2-4 units)

    I did the partnership thing when I first started out and I can assure you that I would prefer to own properties with just my wife and I.

    Without syndication you can have a Joint Venture Agreement between parties. Syndication is usually for properties that require many investors in order for financing to work. In a syndication you are dealing with accredited investors, one of whom has a personal networth equal to or greater than the amount borrowed from the bank. (Yeah, it gets a little tricky.) 

    However, In a JV Agreement setup, each party enters as their own entity and provides either money or expertise or both and no one needs to be accredited. The money is pooled to buy the property. It's like a partnership but much safer. It also has the ability, if written into the agreement, for one entity to cash out by selling to the remaining entities and you can pretty much set things up however you want to set it up. Each entity has a buffer from the liabilities of the other entities. That's a Good thing.

    A Joint Venture can be set up easily and without much expense.

     I've done many Joint Ventures. I have not nor will I do a partnership.

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