A multifamily apartment syndication involves a group of investors pooling their money to purchase and operate a large apartment complex, typically as passive investors.
Sondhi Capital Group’s approach is centered on partnering with top-tier real estate operators with a demonstrated success history and deep expertise in specific locations and asset types. We then fractionalize these curated investment opportunities, making them accessible to our community of accredited investors. This strategy allows us to leverage the strengths of experienced real estate professionals, ensuring that our investments are well-positioned for success, while also offering our investors a diversified and expertly managed portfolio of real estate opportunities.
Benefits include passive income, tax advantages, portfolio diversification, and potential for higher returns than traditional investments.
The firm aims to achieve long-term growth, generational wealth accumulation,and advanced tax strategy optimization for its clients.
The Sun Belt is attractive due to its population growth, strong economy, affordable housing, business–friendly policies, and popularity as a retirement destination, all contributing to a high demand for real estate
The firm spends significant time understanding each client’s individual investment goals, which could range from capital appreciation and passive income to long-term growth or advanced tax strategies
Risks may include insufficient income generation, unexpected maintenance costs, and market condition changes affecting property value.
The minimum investment amount is typically around $50,000 to $100,000, with $75,000 being common for most deals.
Once a client decides on their investment portfolio, they receive a non-binding reservation of equity agreement for each specific fund, which holds their position until the fund’s equity is fully committed
The typical investment period is 3-6 years, with plans to explore selling as early as year 2 but investors should expect a minimum of 4 years.
A PPM is a legal document outlining the key details, investment terms, and risks of a capital raise, while Subscription Documents include legal forms that collect essential investor information
The sponsor manages the acquisition and operation of the property, including fundraising, property management, and eventual sale.
An accredited investor meets criteria like earning $200,000 annually ($300,000 jointly) or having a net worth of over $1 million, excluding their primary residence.
A new LLC with share classes for Limited Partners (investors) and General Partners (us) is created for each new property, with a split of equity after a preferred return.
A preferred return is a hurdle rate that must be met before General Partners receive their share of profits, typically around 7-8%.
No, it’s not guaranteed. It is a target return that must be met before General Partners can participate in profits.
These investments are typically illiquid, but in special circumstances, arrangements may be made to buy out an investor’s shares on a case-by-case basis.
Yes, profits and losses are passed through to investors. Real estate can often be depreciated quickly, creating paper losses that may offset other gains.
Monthly updates and quarterly financial statements are typical once you invest in a deal.
Profit distributions vary by deal but are typically made quarterly, with some deals offering monthly distributions.
Sondhi Capital Group aims to have deals 3-6 times per year.
While predicting the economy is challenging, the focus is on conservative investments with solid cash flow from day one.
Despite high demand, investments are based on cash-flow and value-add strategy, with conservative projections for demand upon sale.
Evaluate based on the sponsor’s track record, property location and condition, financial projections, and risk level. Due diligence is key.
Investments are selected based on their potential for capital appreciation, income generation, and alignment with the firm’s strategic focus on high-demand real estate sectors in the Sun Belt region
The property is typically sold, and profits are distributed to investors, with options to reinvest or receive cash.
Yes, investing through a self-directed IRA is possible, offering the tax benefits of an IRA.
The firm aims to achieve long-term growth, generational wealth accumulation, and advanced tax strategy optimization for its clients.
The firm targets the “Missing Middle” demographic, providing moderately-priced multifamily and build-for-rent housing options to address the gap between rising housing costs and stagnant incomes .
The firm focuses on multifamily development, self–storage, build–for–rent communities, and last–mile industrial real estate.
The firm’s advisory board, composed of experts in various fields, conducts comprehensive due diligence to ensure each investment opportunity is well-vetted and aligned with investors’ objectives.