Pros & Cons of Apartment Investing Syndication
Jake & Gino: Real Estate Investing & Multifamily
Jake & Gino
4.9 • 842 Ratings
🗓️ 20 September 2021
⏱️ 17 minutes
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| 0:00.0 | Hey, Ray, Jake and Gino here. |
| 0:08.3 | And today we're going to talk about the pros and the cons of apartment syndications. |
| 0:15.0 | Geefather, how you doing? |
| 0:16.6 | Stensi? |
| 0:17.3 | Doing great, bro. |
| 0:18.2 | How are you doing? |
| 0:19.2 | Always making it happen, big man. |
| 0:21.7 | So, Gino, |
| 0:26.2 | apartment syndications have been on fire the past five years. Tell me why. That's another statement, my friend. They're not on fire. They are just, it's exploded since we started. |
| 0:30.4 | Again, you gave you a couple of reasons, a couple of drivers that have done that. The first one is |
| 0:34.5 | the 2012 Jobs Act. Yes, Obama did something great during his eight years. |
| 0:40.0 | That Jobs Act was amazing for the economy. He actually saw that there was a need. It was easier, |
| 0:45.2 | made it a lot easier for syndicators or for people trying to raise capital. So the Jobs Act spurred |
| 0:49.5 | something. Ironically enough, we bought our first deal in 2013. We didn't see those effects yet because the economy was still languishing. We still had rents at 300 bucks. How much? 300 bucks for one bed. 350. Well, the GDP is at 1% first thing. I think the second thing is as investors, we need to look at supply and demand. There was not a lot of demand for apartment housing, multifamily when we started. |
| 1:13.2 | There just wasn't. Money was flowing into different asset classes. But in the last decade or so, |
| 1:19.1 | what's happened? It's ultimately become a basic human need. Open. Yeah. Yeah. Food, clothing, |
| 1:26.4 | and apartments. You look at the demographics. All of a sudden, there are a lot of |
| 1:31.0 | baby boomers. Every day, 10,000 people are turning 65. They're turning in the keys. They're selling |
| 1:36.4 | their McMansion. They're downsizing. They're buying RVs and they're renting apartments. |
| 1:41.7 | Millennials, on the other hand, are not buying homes as quickly as |
| 1:46.2 | the previous generation. They have a ton of student debt. They have to pay that student debt off, |
| 1:51.0 | and they're getting married later. Who buys homes? House formation starts when you get married. |
... |
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