Syndication is the pooling of investor capital where investors typically participate as limited partners, while the general partner (syndicator) structures the deal and manages the business plan. This approach provides returns for the benefit of all investors.

A Private Placement Memorandum (PPM) is required by the SEC and outlines the offering details, partnership agreement, investment summary, subscription agreement, and risk disclosures. It is a lengthy legal document prepared by a syndication attorney and highlights nearly every potential risk.

Annual returns are generally targeted in the 8–10% cash-on-cash range, with an average IRR of 15% over the hold period. In value-add projects, much of the return is realized at the time of sale. Actual performance varies by property, as described in each project’s PPM.

Sunchase Companies models investments with a 5-year hold period, providing time to execute the value-add plan and generate cash flow before a potential sale. Principal may be returned as early as year two from a refinance, or an investment could be held as long as seven years depending on market conditions.

Minimums vary from deal to deal but generally are set at $100K with preference given to investors with more to invest.

Investor distributions vary from deal to deal but most syndications make monthly or quarterly distributions.

We’ll provide monthly or quarterly email updates on the investment’s progress including renovation status/pictures, rents we are getting, and the distribution amount for the period. You will also receive a K-1 statement from us in March of each year for your tax filing.

Apartment syndications are very tax efficient. As a limited partner, you will benefit from your portion of the investment’s deductions for property taxes, loan interest, depreciation, etc. We will also use a cost segregation strategy to accelerate depreciation. The tax loss can then be used to offset other income depending upon your individual tax situation. At the time of sale, the partnership gains are treated as long-term capital gains.

Yes – We operate on a core value of treating investors’ money as if it were our own. We invest alongside our clients in every deal.

Yes – We model different scenarios to show our breakeven point for profitability given a decline in occupancy or if rents drop below projections.

Yes – You can invest in real estate with certain retirement accounts. We are happy to discuss how to boost your IRA investing returns with real estate investing.

The returns forecasted are described in the private placement memorandum (PPM) and vary from deal to deal. The most common fee is an acquisition fee based on purchase price and is paid at closing. This covers the general partner’s costs to find the deal and get it under contract. The second most common fee is the asset management fee which is compensation for holding the property manager accountable, to ensure execution of the business plan, bookkeeping, and distribution of checks and K1s. The asset management fee is aligned with the investor’s interest as it is based on the property’s revenues. Industry averages are 1-3 % for both fees.