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What is Multifamily Syndication?
Multifamily syndication is a way for multiple investors to pool their capital to purchase large apartment buildings or multifamily properties that would typically be out of reach for a single investor.
In this structure:
- General Partners (GPs) — like our team at Freeman Lundt—manage the entire process, including identifying the property, raising capital, overseeing renovations, managing operations, and eventually selling the asset for profit.
- Limited Partners (LPs) contribute capital to the deal, gaining ownership stakes without the need for active involvement in the property’s day-to-day management.
As an LP, you benefit from:
- Cash Flow: Earn regular passive income from the property’s rental operations.
- Equity Gains: Receive a share of the profits when the property is sold, typically after 3-7 years, providing significant returns on your initial investment.
- Tax Advantages: Enjoy depreciation and other tax benefits, which can offset other income and lower your overall tax burden.
Multifamily syndication offers a way to build wealth through real estate while leaving the hard work to experienced GPs who manage the property for you.
Why Add Multifamily Real Estate to Your Investment Plan?
Cash Flow
Investors receive quarterly distributions after all operational expenses are covered.
Stability
Multifamily properties offer consistent performance, with less volatility than traditional stock investments.
Tax Benefits
Depreciation provides significant tax advantages, helping you retain more of your earnings.
Leverage
Leverage can significantly amplify your returns when used wisely. By controlling larger properties, you can benefit from higher rental income and greater appreciation.
Diversification
Investing in multifamily syndication spreads your risk across multiple units rather than putting all your money into a single-family property.
Appreciation
Forced appreciation through strategic value plays increase the overall value of the property.
Looking to Invest Now?
If you’re ready to invest in these exclusive opportunities, fill out our investment form, and we’ll be in touch soon!
Our Investment Strategy
At Freeman Lundt, our investment strategy is multi-faceted. We think outside the box to deliver superior returns for our investors. At our firm, this starts with a bottom-line approach. We focus on acquiring underperforming or value-added multifamily properties with significant growth potential, transforming them into high-performing assets that maximize both short-term cash flow and long-term appreciation.
Sustainability Meets Profitability
Leveraging our network of energy efficient companies like LED Trail (one of our sister companies), we incorporate energy-efficient solutions into our value-add projects. From LED lighting retrofits, solar panels, water expense reduction, and more advanced energy-saving technologies, we reduce utility costs for properties while contributing to a greener future. These sustainable enhancements not only lower expenses but also boost property appeal and value, ensuring long-term tenant satisfaction and operational stability.
Key Value-Add Initiatives
- Operational Efficiencies: Streamlining property management processes to reduce costs and optimize performance.
- Renovation Projects: Modernizing interiors, upgrading amenities, and enhancing curb appeal to increase property value and rental demand.
- Energy Optimization: Partnering with energy efficiency manufacturers to implement cutting-edge solutions like solar integration, EV charging stations, and energy-efficient systems that reduce costs and meet modern tenant expectations.
- Community Enhancements: Creating safe, desirable spaces with improved facilities and services that foster a sense of community, helping to reduce tenant turnover.
Key Buy Box Criteria
Our focus is on properties that align with the following parameters to ensure the best opportunities for growth and return on investment:
Investment Offerings
Freeman Lundt offers both 506(b) and 506(c) SEC-compliant syndication opportunities:
Minimum investments range from $25K to $100K, with tiered preferred returns based on contribution levels.
The Bottom Line
Every enhancement we make directly impacts the bottom line. Energy savings, increased occupancy rates, and optimized operations ensure higher cash flow and asset appreciation, putting more money in our investors’ pockets. Our strategic improvements are carefully designed to maximize both short-term performance and long-term value, creating a legacy of wealth for our investors and their families.
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Why Invest With Freeman Lundt
Freeman Lundt began as a trusted M&A advisory firm, helping business owners achieve successful transitions and unlock their businesses’ full value. Over the years, we’ve expanded our expertise to offer comprehensive financial and investment solutions, including Multifamily Syndication. This evolution reflects our commitment to maximizing value and financial efficiency, enabling our clients to grow their wealth and achieve their financial goals.
What Sets Us Apart
At Freeman Lundt, we are driven by a mission to empower our clients through innovative financial solutions that align with their goals. Our approach combines integrity, precision, and collaboration, ensuring each partnership delivers value far beyond the transaction.
Decades of Expertise
Over 30 years of proven success across financial services, business development, and real estate investments. Our experience in underwriting, risk mitigation, and value-add strategies allows us to create investment opportunities that maximize returns while minimizing risk, all while you enjoy the benefits of passive income.
Client-Centric Solutions: Custom-tailored strategies that focus on maximizing your financial efficiency and bottom line.
Innovative Ventures: Strategic partnerships and ventures, including sister companies LED Trail and Electra Start NW, exemplify our forward-thinking vision.
Commitment to Community: A dedication to creating thriving communities through safe, quality housing and empowering opportunities.
Your Path to Passive Wealth
With Freeman Lundt, multifamily syndication isn’t just an investment—it’s an opportunity to grow your wealth while contributing to meaningful community development. Whether you’re looking to diversify your portfolio, create passive income, or build a legacy of financial stability, our expertise ensures your investment is in capable hands.
Discover how Freeman Lundt’s multifamily syndication services can help you achieve your financial goals while maximizing value at every step. Let’s build your future together.
A Win-Win for Investors and Residents
Our value-add approach balances profitability with purpose. By improving operational efficiencies and modernizing properties, we create thriving communities that tenants are proud to call home—all while driving higher returns for our investors.
Multifamily Syndication with Freeman Lundt
We manage all aspects of the investment, allowing you to enjoy consistent returns without the hassle of property management.
Tangible Asset Backing
Your investment is tied to real estate, a physical asset that provides stability compared to more volatile markets. Multifamily properties are in high demand due to the constant need for housing, which helps protect your investment, even in uncertain economic conditions.
Expert Management
As your General Partners, we handle all the heavy lifting. From acquiring the property to managing renovations and tenants, we ensure the project runs smoothly, so you can focus on reaping the benefits of passive income without day-to-day involvement.
Proactive Risk Mitigation
We conduct thorough due diligence and run stress tests on each deal to prepare for market fluctuations. Additionally, with multiple exit strategies and contingency plans in place, your investment is safeguarded even if the market shifts or the property underperforms.
Know Your Investment Goals
Define your short- and long-term financial goals before investing. Whether you’re looking for cash flow, appreciation, or tax benefits, understanding your goals helps you choose the right investment opportunity.
“Investing in real estate isn’t just for the wealthy—it’s for those who want to create wealth.”
The 4 Steps to Building Wealth Through Multifamily Syndication
- Exclusive Access: Subscribe to our newsletter and join our priority list to gain insider access to market updates and carefully curated multifamily investment opportunities. As part of our network, you’ll stay ahead of market trends and be among the first to hear about investment opportunities designed to help grow your wealth.
- Informed Decisions: We provide comprehensive property insights, market analyses, and projections to help you make educated decisions. Educational resources and sessions are available to ensure you fully understand the investment strategy and projected outcomes.
- Clear and Transparent Process: You’ll receive a Private Placement Memorandum (PPM) and a detailed slide deck outlining the investment structure, financial projections, risks, and key details. Our team guides you through the process to ensure clarity at every step.
- Aligned Structure: With preferred returns and equity splits, the investment is designed to align with your financial goals, providing the potential for competitive returns while accounting for associated risks.
- Commitment Process: Once you’ve reviewed the investment materials and decided to participate, you’ll formally reserve your spot in the offering by completing a subscription agreement and providing your investment funds, securing your ownership in the deal.
- Proactive Management: Our experienced team focuses on enhancing property value through renovations and professional management, aiming to maximize income potential and overall property performance.
- Stay Connected: You’ll receive regular updates on property performance, progress on the business plan, and quarterly distributions (if applicable), keeping you informed throughout the investment period.
- Planned Exit Strategies: We monitor market conditions and property performance to determine the most strategic time to sell or refinance, aiming to optimize potential returns for our investors.
- Final Distributions: Upon exit, investors receive their share of the property’s appreciation and any accrued preferred returns, concluding the investment cycle. While past performance cannot predict future results, our goal is to create positive outcomes for all participants.
Maximize Tax Benefits with Cost Segregation
Multifamily syndication offers powerful tax benefits through cost segregation studies and accelerated depreciation, enabling investors to write off significant portions of a property’s value in the early years of ownership. By identifying and depreciating components like appliances, fixtures, and landscaping over shorter time frames, these strategies help reduce taxable income and create substantial tax savings. This makes it an effective tool for offsetting income and retaining more earnings from real estate investments. As tax situations vary, always consult with your tax advisor to understand how these benefits apply to your specific circumstances.
Understand the Risk-Return Tradeoff
Every investment comes with risks, and multifamily syndications are no exception. It’s important to evaluate the level of risk in any deal and ensure it aligns with your financial goals and risk tolerance.
We believe in helping our investors build a well-rounded portfolio. By investing in opportunities across various markets and property types, you can mitigate risk and position yourself for long-term success. Our team at Freeman Lundt carefully curates investment opportunities with these principles in mind, so you can invest with confidence.
We’re Here to Help You Build Wealth
Have questions about if Multifamily Syndication is a good fit for your investment strategy? Call, email us, or fill out our contact form, and we’ll get in touch.
Frequently Asked Questions about Multifamily Syndication
Multifamily syndication is a powerful tool for building wealth and leveraging tax advantages, but it involves many moving parts that can be complex and challenging to navigate. To help demystify the process, here are answers to some of the most frequently asked questions, along with key terminology you should know.
- 506(b) Offerings:
- Allows up to 35 non-accredited investors who are “sophisticated” and an unlimited number of accredited investors.
- No public advertising is permitted for these deals. Sponsors must have a pre-existing relationship with all non-accredited investors before the offering.
- 506(c) Offerings:
- Open only to accredited investors (defined below).
- Allows for public advertising to attract potential investors.
According to the SEC, you qualify as an accredited investor if you meet one or more of the following criteria:
- Net Worth: Your net worth (excluding your primary residence) exceeds $1 million, either individually or jointly with a spouse or spousal equivalent.
- Income: You have earned an annual income of $200,000 (or $300,000 jointly with a spouse) in the past two years and expect to maintain that level.
- Professional Status: You hold certain financial certifications or designations (e.g., Series 7, 65, or 82 licenses).
- Entity Ownership: You are a general partner, executive officer, or director of the company issuing the securities.
A sophisticated investor is someone with enough knowledge and experience in financial and business matters to evaluate the risks and merits of an investment. Unlike accredited investors, there are no specific financial thresholds, but you should have:
- A solid understanding of syndication risks and returns.
- Prior investment experience or strong financial literacy.
- The ability to absorb the potential loss of the investment.
- Sponsors must assess whether a non-accredited investor qualifies as sophisticated before allowing them to participate in a 506(b) offering.
Multifamily syndication allows you to scale quickly and leverage economies of scale. Rather than managing one rental property at a time, you’re investing in larger apartment communities with professional property management in place. It also diversifies your risk—if one tenant leaves, the vacancy impact is spread across multiple units, unlike a single-family rental, where losing one tenant means 100% vacancy.
Yes! Freeman Lundt will provide:
- Quarterly Reports: Financial and operational updates.
- Annual Tax Documentation: K-1 forms for your tax filings.
- Regular Communications: Progress on renovations, occupancy rates, and distributions.
The PPM is a legal document outlining the details of the investment, including:
- Projected returns and risks.
- Fee structures and investor responsibilities.
- Compliance with SEC regulations. This ensures you have all the information needed to make an informed decision.
Absolutely! Investors are allowed to visit the property before investing and during the life of the project. If you give us advanced notice, we can make sure someone is there to show you around and answer any questions.
Investor funds are used for the total acquisition cost of the property. This includes but is not limited to the down payment for the actual purchase of the property, acquisition fees, legal and transaction costs, capital improvements, and reserves.
Yes! Many of our investors use self-directed IRAs or solo 401(k)s to invest in syndications. If you currently have a self-directed IRA, please check with your current custodian to ensure that they will allow you to place your investment with Freeman Lundt Multifamily Syndication. If you haven’t converted from a traditional IRA to a self-directed IRA, you’ll need to contact a custodian to help you with that. If you need a referral, we can connect you with the group we use personally.
Freeman Lundt typically charges:
- Acquisition Fee: A percentage of the property’s purchase price to cover sourcing and due diligence.
- Asset Management Fee: Ongoing fee for overseeing property performance.
- Refinance/Disposition Fee: A fee upon the sale of the property, tied to the final sale price. All fees are outlined transparently in the PPM.
Insider Tip: Ask Questions Before Investing
Don’t be afraid to ask the syndicator about their business plan, fee structure, and risk mitigation strategies. A transparent syndicator will welcome your questions and provide detailed answers.
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Understanding Investment Risks in Multifamily Syndication
Investing in multifamily syndication involves risks, and prospective investors should carefully consider these risks before participating. As with any investment, there is no guarantee of returns, and investors may lose part or all of their investment. Factors that could impact the performance of a multifamily syndication include:
- Market Fluctuations: Changes in local or national real estate markets, including economic downturns, shifts in tenant demand, or changes in interest rates.
- Property-Specific Risks: Unexpected expenses related to property management, repairs, or vacancies that could reduce cash flow and profitability.
- Illiquidity: Multifamily syndications are typically long-term investments and may not offer liquidity before the property is sold or refinanced.
- Regulatory Changes: Changes in laws, tax regulations, or zoning policies could affect the property’s financial performance or valuation.
- Operator Risks: The success of the investment depends on the performance of the sponsor or syndicator, including their ability to manage the property, execute the business plan, and navigate unforeseen challenges
This is not an offer to sell or a solicitation to buy securities. Any offering of securities will be made only by means of a private placement memorandum (PPM) and is subject to the terms and conditions contained therein. Prospective investors should conduct their own due diligence and consult with financial, tax, and legal advisors to fully understand the risks and suitability of such investments in the context of their personal financial circumstances.”
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