Automate & streamline
multifamily syndication
with Covercy.

Try Covercy, an investment management platform for General Partners managing multifamily syndication projects.

Try For Free

Covercy is trusted by:

Everything you need to know
about multifamily syndication

There are several compelling reasons for General Partners (GPs) to add multifamily properties to their portfolio. Learn why this asset class is an enticing strategy for so many commercial real estate professionals.

Stable Cash Flow

Multifamily properties, such as apartment complexes, typically generate consistent rental income. This steady cash flow is more predictable compared to other types of real estate investments, like office buildings or warehousing, where vacancies can have a more significant impact on income.

Economies of Scale

Managing a multifamily property can be more cost-effective on a per-unit basis compared to single-unit properties. Expenses such as maintenance, landscaping, and security can be spread across multiple units, reducing the overall cost per unit. This economy of scale can improve profit margins.

High Demand

There is a persistent demand for rental housing in many U.S. markets, driven by factors like population growth, urbanization, and changing housing preferences, especially among millennials and Gen Z who are more likely to rent. This demand supports high occupancy rates and can lead to steady rental income.

Appreciation Potential

Multifamily properties often have strong potential for value appreciation. Factors like location, improvements made to the property, and market conditions can increase the value of these properties over time. Additionally, the ability to increase rents periodically can also enhance the property’s value.

Covercy is the first real estate investment management platform with embedded banking designed for GPs in the multifamily syndication niche.

Covercy offers a wide range of features for GPs that make it easy to manage investors and multifamily property assets, including:

• A centralized database to store all investor information

• Investor communication tools to keep investors updated on the status of their investments

• Automated distribution payments to make it easy to get money to investors

• Performance reporting to track the performance of investments

• Integrated FDIC-insured banking for instant ACH transfers to & from investor bank accounts

Get Started Free

Why GPs Choose Covercy
for Multifamily Syndication

Waterfall Models & Distribution Payments

Multifamily syndications often have complex investor distribution structures, including preferred returns and waterfall distribution models. With Covercy, GPs can accurately calculate and distribute returns to investors based on a variety of customizable structures and make ACH payment distributions from right within the platform.

Capital Expenditure (CapEx) Management

Multifamily properties often require significant capital expenditures for renovations or upgrades to drive value-add strategies. Covercy enables detailed CapEx Management tracking, forecasting, and ROI analysis while allowing GPs to share these detailed reports with investors within the platform.

Debt and Equity Management

Multifamily syndications often involve a mix of debt and equity financing. Covercy allows GPs to track loan terms, interest rates, amortization schedules, and equity contributions, and report on how these affect overall returns.

Interest-Earning Cash Accounts

Covercy integrates seamlessly with a third-party banking partner to provide both GPs and their investors with access to a number of critical banking features. Earn interest on paid-in capital, make fee-free ACH distribution payments to investors, and collect capital contributions instantly.

Overall, Covercy is a powerful investment management tool that can be a valuable asset for GPs managing multifamily syndication projects. It can help automate tasks, centralize data, and improve security and compliance. This can free up GPs’ time to focus on making sound investment decisions and managing their portfolios effectively.

More about commercial real estate syndication

Multifamily Strategies

What are the different types of multifamily properties? How can a General Partner evaluate the risk level of each sub-class?

A multifamily property is a type of residential real estate consisting of multiple separate housing units for residential inhabitants within one building, or several buildings within one complex. These properties are typically designed to house several families living independently of each other. Multifamily properties can vary in size and complexity, and there are different types, each with its own characteristics and risk profile:

Types of Multifamily Properties

Duplexes, Triplexes, and Fourplexes: These are smaller multifamily properties that consist of two, three, or four units, respectively. They are often similar in appearance to single-family homes but contain multiple living units. These are considered residential properties for financing purposes if they have four units or fewer.
Small Apartment Buildings: These buildings typically have between 5 and 50 units. They offer more rental income potential than smaller multifamily properties but can be more management-intensive.
Large Apartment Complexes: These are larger developments with often 50 or more units. They can offer significant income potential and economies of scale but require professional management and substantial capital for investment.
High-Rise Apartment Buildings: These are large buildings with more than 12 floors and numerous units. They are usually located in urban areas and can offer many amenities but require significant investment and professional management.
Student Housing: These are multifamily properties designed to cater to students, often located near colleges or universities. They can offer high demand but may have higher turnover and seasonal vacancy rates.
Senior or Retirement Housing: These are multifamily units tailored to the needs of older adults, sometimes providing extra services like medical care or community activities.

Investment Risk and Return

The risk and return profile of each type of multifamily property can vary:

Smaller Properties (Duplexes to Fourplexes): Generally, these are considered less risky due to their lower cost of entry and the ease of management. They can be a good starting point for new investors but may offer lower income potential compared to larger properties.
Small to Large Apartment Buildings: These offer the potential for higher income and can benefit from economies of scale. However, they also come with increased management complexity and higher capital requirements, making them a bit riskier.
High-Rise Apartment Buildings: These are often the most expensive and complex to manage and hence carry higher financial and operational risks. However, they can also offer substantial returns due to their size and potential for numerous amenities.
Specialized Housing (Student, Senior): These can offer high returns but are more sensitive to specific market conditions, like university enrollment rates for student housing or demographic trends for senior housing.

In terms of risk and return, there’s no one-size-fits-all answer as to which multifamily property type is the best investment. It largely depends on the investor’s resources, experience, and specific market conditions.

Discover other real estate asset classes

Tailor Covercy’s investor management
features for your real estate firm

Free

Free investment management software

Free plan includes:

Investor management

Manage your assets and your investors all in one place.
Investor Portal with reporting

Elegant investor portal where your investors can review performance.
Fundraising and capital call management

Promote new properties/assets via the platform. Record interest level and funding.

Try for free

Standard

Save 20%

Automate payments and increase productivity

All the benefits of Free, and:

Full Investor Portal

Give access to your investors: new opportunities, assets, reports, documentation, K1s.
Automated distribution payments

End-to-end automated distribution payments. Calculate, notify, distribute directly to your investor's bank account.
Capital call collection with ACH debit

After fundraising commitment, automate the capital call payment processing and reconciliation.

Try for free

Pro

Save 20%

For growing teams and funds

All the greatness of Standard, and:

Funds (with capital commitments)

Allows raising funds in an open fund structure.
FDIC insured wallets per Fund

All funds in the Covercy Wallet are FDIC insured by our banking partner.
Fully customizable permissions

User roles fully customizable.

Try for free

SEE ALL FEATURES & PRICING

Not sure which is right for you?
Book a demo and we’ll help you decide.

Try it Free Request a Demo

Banking services:

Covercy is a financial technology company, and is not a bank. Banking services provided by Thread Bank, Member FDIC.
The Covercy Visa Debit Card is issued by Thread Bank, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa is accepted.
Your deposits qualify for up to a maximum of $2,500,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://go.thread.bank/sweepdisclosure and a list of program banks at https://go.thread.bank/programbanks. Please contact customerservice@thread.bank with questions on the sweep program.

Payment services:

The Currency Cloud Limited (Non MIFID related products). Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorized by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199)
Covercy Europe Limited. Registered in England No. 675000. Registered Office: 5 Elstree Gate, Elstree Way, Borehamwood, Hertforshire, WD6 1JD, UK
Covercy Technological Trading Limited. Registered in Israel No. 57797. Registered Office: 3 Ha-Yetsira St, Ramat Gan 5252141.
For clients based in the European Economic Area, payment services for Covercy Europe Ltd. are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 – 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701).
For clients based in the United States, payment services for Covercy Europe Ltd. are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation (FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number: 31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York , NY 10011.
For clients based in the United Kingdom and rest of the world, payment services (Non MIFID related products) for Covercy Europe Ltd. are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).

All testimonials, reviews, opinions or case studies presented on our website may not be indicative of all customers. Results may vary and customers agree to proceed at their own risk.

Automate & streamline
multifamily syndication
with Covercy.

Covercy is trusted by:

Everything you need to know
about multifamily syndication

There are several compelling reasons for General Partners (GPs) to add multifamily properties to their portfolio. Learn why this asset class is an enticing strategy for so many commercial real estate professionals.

Why GPs Choose Covercy
for Multifamily Syndication

Multifamily Strategies