Frequently Asked Questions and Answers

Multifamily real estate investing involves pooling money from multiple investors to purchase a property, thereby spreading the risk and potential reward among the group. Here are some frequently asked questions about syndicated real estate investing:

How Does Multi-Family Syndication Work?

Multi-family syndication is a real estate deal in which several investors combine their funds to buy a property. The General Partner is responsible for locating the deal, coordinating the transaction and funding, and managing the investment once the transaction has been completed.

What Are The Benefits of Investing in Multifamily Real Estate?

The benefits of investing in multifamily real estate include providing a steady stream of passive income, building wealth through appreciation and equity, and diversifying your investment portfolio.

How are Global Integrity Investments LLC Syndications Structured?

  • LLC owns property
  • Investors own share in the LLC
  • Management is separate LLC that has all liability
  • Investors have no liability beyond their investment
  • Managers have all responsibility in managing the asset

Why Would I Invest in Multi-family Syndications Over Just Buying It on My Own?

Leverage. Not putting all your eggs in one basket thereby allowing you to invest in other projects as well. You benefit from the syndicator’s expertise, experience, and ability to qualify for loans, select from many opportunities, vet the deal, and execute the management of the investment for maximum return on investment. 

What is a Limited Partner and What is a General Partner?

A Limited Partner (LP) is a passive investor in a deal who typically has a preferred cash-on-cash return on their investment and no liability or credit risk in the deal.

A General Partner (GP) is the real estate professional who finds, structures, and manages the investment.

What Are The Major Risks Of The Offering?

There are two significant risk areas for any commercial real estate deal — market risks and operational risks.

Because we are experienced, disciplined full-time professionals, we can ensure our investors get a much more thorough analysis of each deal than virtually any passive investor could conduct on their own.

Our president and founder has a stellar 30+ year career working in real estate investing.

How Do I Know How My Investment is Performing?

Our team will send monthly reports to investors via email, providing an update on the performance of the property, along with a link to the property’s full financial package. Investors will also have access to their investor portal where they can review their investment details and relevant documents at any time.

How Do Distributions Work?

Distributions will be paid out on a monthly basis. The distribution schedule will be outlined within the investment offering. In most cases, we begin our monthly distributions 3 to 6 months after closing on the property.

What Are The Tax Advantages?

As an investor with Global Integrity Investments LLC, your investment will go towards equity ownership in the property(s).  You will receive a K-1 at the end of each year for each of your investments with us. You’ll be able to access these documents from our secure investor portal.

Do I Have To Pay Taxes on Dividends?

Dividends are taxed at your regular income tax rate. However, typically limited partners (passive investors) pay no taxes until the property sells, since syndicators usually accelerate the depreciation using a cost segregation study.

We always recommend consulting with your tax professional regarding tax issues.

What Is The Minimum Investment Amount?

Minimum investment amounts can sometimes vary depending on the property. Typically though, the minimum investment is $100K. However, depending on the property and circumstances, investments less than $100K may be possible.

How Do I Analyze The Potential Returns of a Multifamily Investment?

Key metrics include cap rate, cash-on-cash return, gross rent multiplier, net operating income (NOI), and internal rate of return (IRR).

Contact us regarding any of our properties


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