How investing works

Passive investing, explained plainly.

You do not need to find, finance, or manage a property to own a share of one. Here is how a multifamily syndication works and what your role would be.

The basics

What is a syndication?

A syndication is a group of investors pooling capital to buy a property together, usually through a dedicated LLC or limited partnership that owns the asset.

An experienced sponsor finds the property, arranges financing, executes the business plan, and handles the day-to-day. Passive investors contribute capital and receive a share of the property’s income and any profits on a sale or refinance, in proportion to their ownership and the terms of the offering documents.

Two roles

General partners and limited partners.

GP · Sponsor

The general partner runs the business.

REIN Capital Partners acts as the general partner, or sponsor.

  • Finds, analyzes, and negotiates the property
  • Arranges financing and signs on the loan
  • Raises capital and manages investor relations
  • Oversees renovations and property management
  • Executes the business plan through sale or refinance
LP · Passive investor

The limited partner provides capital.

As a limited partner, you invest and stay passive.

  • Reviews the offering and invests capital
  • No landlord duties or day-to-day decisions
  • Liability generally limited to the amount invested
  • Receives updates, tax documents (K-1), and distributions when available
  • Shares in the outcome per the offering documents
The process

From first conversation to exit.

Relationship first. Every investor journey with us starts with getting to know each other.

  1. Get to know us

    Join the investor list and schedule an introductory call. We want to understand your goals and answer your questions.

  2. Learn the model

    We walk through how syndications work, the risks, and whether this kind of investment fits you.

  3. Review an opportunity

    When we have an offering, investors with whom we have an established relationship receive private offering materials.

  4. Invest

    You review and sign the subscription documents with your advisors, then fund your investment.

  5. Stay informed

    Regular updates on the property, annual K-1 tax documents, and distributions as the property performs.

  6. Exit

    At the end of the business plan, the property is sold or refinanced and proceeds are distributed per the offering documents.

Who can invest

Accredited and sophisticated investors.

Private real estate offerings are generally limited to accredited investors, and in some offerings a limited number of sophisticated investors. Under SEC rules, an individual may qualify as accredited based on income, net worth, or certain professional credentials.

See the SEC’s plain-English explanation at Investor.gov, and talk with your financial advisor about whether you qualify.

Things to know

Understand the trade-offs.

  • Illiquid. Your capital is typically committed for several years and cannot be withdrawn on demand.
  • Risk of loss. Like any investment, real estate can lose value. Never invest money you may need in the near term.
  • Taxes. Investors receive a K-1 each year. Depreciation may affect your taxable income; consult your CPA.
  • Due diligence. Read every offering document carefully and ask questions. We welcome them.
Glossary

Terms you will hear.

Cap rate
A property’s net operating income divided by its value. A common way to compare property pricing.
NOI
Net operating income: rental income minus operating expenses, before debt payments.
Preferred return
A priority share of distributions that may go to limited partners before the sponsor participates in profits, if defined in the offering.
Equity multiple
Total cash returned to an investor divided by the amount invested.
K-1
The annual tax form that reports each partner’s share of income, deductions, and credits.
Value-add
A strategy of improving a property’s physical condition or operations to increase its income and value.
Start the conversation

Get to know us before you ever see a deal.

Join our investor list for educational updates and a personal introduction from Anthony.

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