Jonathan CroninREI Accelerator, Rei Accelerator · Multifamily Real Estate Investor & Coaching Leader

How Smart Investors Leverage Small Ownership for Big Returns 💰

12 Feb 2025

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Short excerpt from a YouTube video discussing investment heuristics: lower ownership percentages (particularly below ~10%) are presented as preferable for certain investors. The speaker explains that after a deal closes, passive investors are listed as limited partners or minority members of the acquiring LLC in apartment syndications. The clip centers on capital-raising and ownership roles in apartment deals.

The smaller the ownership percentage, the better. Okay. And once we get below 10%, it doesn't really matter after that. We have to identify is we're talking about a good apartment deal, then we're looking to raise capital for a good apartment deal when the offering is closed. When the deal is completed, as in closed, purchased, acquired, that account holder is now listed as either a limited partner in the syndication or they're a minority member of the acquiring llc.