Frequently Asked questions

Generally speaking, sophisticated investors must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment. To qualify as an accredited investor, at a minimum you must have earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year or has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). Reference the SEC guidelines at https://www.sec.gov/answers/rule506.htm for a more detailed description.  To find out if you are qualified under this definition, contact us.  (Need click on link to Contact Us Form to capture information)

Yes.  We believe in all of our offerings and invest along side our investors in each syndication.

The minimum investment amount ranges from $50,000 to $100,000+ for each syndication.

Yes. You can invest through an entity as long as the members meet the SEC investor requirements.

Yes, on a case by case basis as long as compliance with U.S. Securities Law is satisfied.

Quarterly distributions is the standard, however, each syndication is a businesses with varying distribution amounts based on the performance of the property.  Each syndication has a specific strategy based on the specific value-add components of the asset.

Consult with your CPA for specifics on how this type of investment can impact you.  There are typically significant tax advantages from investing in the real estate sector through depreciation. You will receive a K-1 from the partnership.

There are three main types of returns from real estate; cash flow, principal pay-down, and appreciation. These returns will vary from property to property, so, please, contact us for more specific information regarding total returns.

Yes, you can use your self-directed IRA (SDIRA) or you can convert an existing IRA or old 401(k) to a SDIRA to invest in our syndications. Contact your CPA to learn the details.  Quest IRA is a popular IRA custodian among investors. Be sure to shop around to find the best service and fees for their custodial services.

A Multifamily Apartment Syndication allows investors to participate in otherwise unobtainable real estate investment opportunities by aggregating capital and experience by teaming up with other like-minded investors. This also allows you to diversify your capital into other real estate syndications or in other economic sectors.

Multifamily Benefits

SYNDICATION

Over 90% of multifamily purchases are made through a syndication. A syndication allows you to take advantage of the experience and financial strength of the sponsor and to aggregate capital among other investors to invest in otherwise unobtainable, high-value apartments with high returns.

RISK REDUCTION

By investing with other investors through a syndicator with a proven track record, investment risk is dispersed among all the investors. A syndication allows you to adjust your investment to a more comfortable risk level.

TAX ADVANTAGES

We do not serve as tax strategists. Please consult your CPA for specific benefits of these investment types. Our real estate investments would generally have the primary added tax value of depreciation.

PRINCIPAL PAYDOWN

Through the life cycle of the syndication, rental income from the property pays all debt service. Upon sale of the property principal reductions will be returned to investors.

CASH DISTRIBUTIONS

Depending on the level of the value-add component of the asset, most properties will produce a cash yield from the beginning. In some cases where the value-add component is a high vacancy rate, the strategy may require investors to accept more risk with little or no dividends in the beginning in exchange for a larger return later.

ECONOMIES OF SCALE

Single family properties or small multifamily properties do not have sufficient revenue to hire full time staff. Because of this, owners are typically required to handle all day to day operations of the property. With a multifamily syndication, revenue is sufficient to hire full time staff to operate the property with oversight and direction from the syndicator.

CAPITAL APPRECIATION

Unlike single family homes, a multifamily apartment syndication is a business that is valued primarily by its Net Operating Income (NOI), not by property comps. Through physical and operational improvements, you can increase the value of the property by increasing NOI. All of the properties we pursue have a value-add component which provides an opportunity to capture appreciation through capital improvements or through streamlining known operational inefficiencies with current owners.

ASSET PROTECTION

Each syndication purchases the multifamily asset through a limited liability company (LLC). An LLC provides its members with certain personal legal protections against lawsuits and personal financial liability. Consult with your attorney for specific advice on the benefits of investing through a syndication.
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