Show me the money!
Residential development syndicates can be a lucrative investment. But how long does it take to receive returns from a syndicate?
No doubt you’ll be aware that syndicates can be a great investment to create significant wealth in a short period of time.
So how long does it take to receive my returns once I’ve invested in a residential development syndicate?
The answer will be dependent upon two main factors – the company overseeing the syndicate and the size of the development.
At Momentum Wealth, we typically offer syndicates that complete boutique apartment developments, which can be classified as complexes of 50 units or less.
These types of developments provide a more niche product in the market and generally carry less risk than much larger projects that comprise hundreds of apartments.
One of the key criteria we seek to meet when completing residential development syndicates is to return investors’ distributions as quickly as possible.
For our boutique apartment developments, we typically provide a timeframe of around 30 – 36 months in which investors will receive their returns. That is, from when an investor initially commits their funds through to planning, development and sales. However, this varies from syndicate to syndicate.
It’s important to do your research before committing to a syndicate to ensure the company is capable of executing exactly what they’re promising. Do they have a good track record of delivering such projects and have they stuck to budgets and timeframes in previous syndicates?
By failing to complete adequate research you may be left waiting longer than expected for your returns, or worse, you may not receive them at all.