Navigating the Multifamily Market in 2020
As multifamily market expands and investors tap into the unique possibilities, some worry about the state of the market. Where apartment demand was estimated at 300,000 units in 2019, demand is projected at 240,000 units in 2020. While this might be a dip, other...
A New Decade in Self-Storage Investments
Accompanying the entrance of the new decade is the growth of the self-storage industry. The appeal to a variety of older and younger demographics and the tendency to stay afloat during varied economic climates makes self-storage an appealing method of diversification....
Are Your Financial New Year’s Resolutions Ready?
It’s the time of year to think about holiday shopping, get-togethers, and all the endless tasks that keep us busy during the holiday season. But you’re not alone if you have a nagging feeling at the back of your head—what are my resolutions for the new year? What are...
Preparing for 2020’s Financial Recession
On August 14th, 2019, news reports reported the worst: we’d be seeing another recession in the upcoming year. Inverted yield curves are a typical indicator of a recession. News reports reported this all over the world. Geopolitical trade wars and slowing global growth...
What You Need to Know About Multifamily Real Estate Investing
Harvard’s 2019 State of the Nation study indicated that 35% of American households rent. In fact, by October 2018, only 56% of American households could afford to buy a home. In 2012, this number was 78%. However, as of 2019, the demand for rental housing has outpaced...
Making Opportunity Zone Investments Work
If you’re interested in real estate investments at all, you’ve certainly heard talk of opportunity zones in the last few years. There is significant potential in Qualified Opportunity Zones. From the Tax Cut and Jobs Act of 2017, opportunity zones were developed in...
What’s the Best Way to Invest in Self-Storage?
While it’s a far less glamorous way of investing than other real estate opportunities, self-storage presents a convenient type of real estate with low expenditures and is an investment strategy that generally remains resilient throughout economic downturns. In fact,...
Why Do I Need a Sensitivity Analysis?
The risks involved in making big investments can be overwhelming. However, there are calculations and tools that can be used to understand these risks more intimately, as well as predict potential outcomes. When you’re looking to make an investment for the first time,...
How to Create a Six-Figure Passive Income Stream Using Multifamily Real Estate Syndications
As many new investors are expanding their knowledge around the real estate asset class, I thought it would be beneficial to unpack the concept of passive income a little further. Contrary to conventional wisdom, informed investors have changed their mindset and...
5 Reasons to Invest in Manufactured Home Parks
Manufactured home parks (MHPs), commonly known as mobile home parks, are often overlooked by many real estate investors, but they provide a great opportunity to earn passive income like multi-family housing. As an investor, you buy land that has been zoned to be...
Is Your Portfolio Ready to Withstand Another 2008?
On August 5, the Dow closed at almost 770 points lower due to fears about trade wars. On August 14, the Dow tanked 800 points in the biggest one-day decline of 2019. This market volatility and lack of control is exactly why we have been focusing on educating you on an...
The Future of Multi-Family Housing
The U.S. population is getting older and more diverse, with a growing demand for multi-family housing. Empty-nesters are looking to downsize, millennials are not purchasing homes at the same rate as previous generations and more people are opting for a more convenient...
How to Invest in Real Estate Using Your Retirement Funds
Diversify Your Retirement Account with a Self-Directed IRA Did you know that you can use your retirement funds to invest in real estate? As someone saving for retirement, you have the ability to choose investments other than the traditional offerings of stocks, bonds,...
Investor Due Diligence on Passive Investing
When it comes to passive investing, the more information you gather about a company from the start, the better equipped you’ll be to make a sound investment decision. The good news is there are plenty of ways to learn about a company before taking the leap, and some...
What’s better: REITs or Real Estate Syndications?
Smart investors know that investing in real estate is a smart move for their portfolio, but may not want to be a landlord. To reap the benefits of real estate and earn passive income, investors will often invest with a Real Estate Investment Trusts (REITs) or real estate syndication.
What is an Opportunity Zone?
As a real estate investor, you can earn a steady flow of income to secure financial freedom. What’s even better is investing in ventures that do not require you to materially participate. Money earned through passive income requires little daily effort and minimal activity on your part. Investing in multi-family real estate has many benefits including recurring cash flow, appreciation, mortgage paydown and taxes.
5 Reasons to Invest in Multi-Family Real Estate Syndications
As a real estate investor, you can earn a steady flow of income to secure financial freedom. What’s even better is investing in ventures that do not require you to materially participate. Money earned through passive income requires little daily effort and minimal activity on your part. Investing in multi-family real estate has many benefits including recurring cash flow, appreciation, mortgage paydown and taxes.
Investing in Self-Storage
As a real estate investor, you can earn a steady flow of income to secure financial freedom. What’s even better is investing in ventures that do not require you to materially participate. Money earned through passive income requires little daily effort and minimal activity on your part. Investing in multi-family real estate has many benefits including recurring cash flow, appreciation, mortgage paydown and taxes.
Tax Benefits of Multi-family Real Estate
As a real estate investor, you can earn a steady flow of income to secure financial freedom. What’s even better is investing in ventures that do not require you to materially participate. Money earned through passive income requires little daily effort and minimal activity on your part. Investing in multi-family real estate has many benefits including recurring cash flow, appreciation, mortgage paydown and taxes.
Getting Started with Multi-Family Real Estate Investment
When it comes to investing, people often talk about turning to the stock market to earn residual income or planning their retirement. While the stock market is a common approach to investing, real estate is still one of the best ways for new investors to get started.
Frequently Asked Questions
What is an accredited investor?
We currently market our deals under SEC regulations 506 (b) meaning we can only share our deals with investor who are accredited and we have a relationship with. The definition in the U.S. is a person earning $200K per year or a couple earning $300K per year over the past two years and expected to do so in the current year; or a net worth of $1m (excluding your primary residence). Since we don’t advertise our deals the accreditation determination is by self-disclosure of the investor by a checkbox. If the deal is advertised to the public, then verification by an outside third party is required.
What is the minimum investment?
We set it at $50K and increments of $5K.
What is the process / timeline?
Once we have a property under contract, due diligence is about 60 days. We start the equity raise process with investors which runs about 5-6 weeks end to end. Marketing deck goes out, investor conference call takes place, investors reserve a spot, review the PPM / sign and fund. About 2-3 weeks later we close on the property. About 60 days later first investor distribution.
What are the risks?
They are outlined in the PPM (Private Placement Memorandum). That said, I like to provide a few data points. In 2009, at the bottom of the financial crisis, delinquency rates on single family homes was 5% vs 1% on MF apartments. Additionally, in Houston when oil went from $100 barrel to $50 barrel Class A (new apt buildings) had to offer concessions and vacancies rose to 15% while Class B (older MF where value add syndicators play) remained steady at 8%. Lastly, we buy proven. Our typical apartment acquisition will have occupancy greater than 90% and usually higher than that and the previous owner was making good money (T12 – trailing 12-month audit will prove this out). We want to improve proven properties not buy on hope.
When will I get paid?
Depending upon the type of deal, distributions can be paid monthly, quarterly, or annually. New build syndications typically have an upfront period of no or low cashflow during the build phase and then accelerate after lease up. The distributions can be direct deposited into the investors account.
What are your return projections and how are your returns calculated?
Typical cash on cash returns are in the 8-10% range and an internal rate of return (IRR) of 16 – 20% range. You may also see 2x multiple which means if you invest $50K into the deal the target is a double or grow your money to $100K in 5 years through distributions and profit at sale. You may also see an average rate of return which is simply the total return over 5 years divided by 5. In value add syndication, the average annual return may be deceiving (higher) than the IRR (Internal Rate of Return) as a large part of the investor returns come in the year of sale (modeled as year 5). IRR typically is a better measure for varying cash flows over a set time horizon.
When will I get my original investment back and what is the holding period?
Typically, at time of sale or liquidity event. We target year 5 as an average. It could happen in year 3 or year 7 or longer if we have a long downturn but 5 is typically what value add syndicators have as a target.
How will you communicate with<br /> me?
Investors can login to our investor portal to check on the investment’s progress. Updates on the property, some photos and how many units were renovated, rents we are getting, etc. Quarterly property management financials can be reviewed. Following March of each year you will receive a K-1 statement from us for your tax filings.
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Pantheon Investments
5342 Clark Rd # 1075
Sarasota, FL 34233
info@pantheoninvest.com
941-237-0735