Frequently Asked Questions

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• Cash Flow - Having your money work for you by receiving distributions sent to you monthly. 
• Stability - Multifamily is less volatile and continues to outperform traditional stock based investments.
• Tax Benefits - Depreciation is a tax write-off that enables you to keep more of your profits. 
• Leverage - The ability to purchase larger assets at a fraction of the cost. e.g.: $20M property with only $7M.  (Your investment is equal to roughly 3-Times the value)
• Appreciation - Forced appreciation through strategic operations and value-add opportunities increases the overall value of the property.

Some of the many benefits include; 

• Generating income (Cash Flow) without participating in the active duties or responsibilities of the operation.
• Professional management of your investment. 
• Diversifying your investment portfolio.
• Potential for higher returns and tax benefits not available by other investment types. 
• Tax deferred returns allowing you to keep more of your earnings. 

You are able to invest through multiple different avenues, whether as an Individual, Jointly, through an LLC (Limited Liability Company), Corporation, Partnership or a Trust.  You are also able to invest with an existing Retirement account IRA/401K without penalty from a third-party self-directed custodian.  

An accredited investor meets certain requirements set forth by the Securities and Exchange Commission (SEC).  Per the SEC an accredited investor must meet one of the following criteria;

• An annual income of $200k or more (for at least the previous 2 yrs or previous year with the anticipation in meeting this amount in the current year).
• An annual income of $300k if filing jointly with a spouse.
• Having a net worth of $1 Million or more, alone or with a spouse (excluding the value of your primary residence).
•  Holds a good standing Series 7, 65 or 82 license.

Through different investment types, you are still able to invest passively in real estate with most of the same benefits.  The different types of investment offerings you may see are Regulation D, Rule 506(b) or 506(c) whereas each have certain rules and regulations set forth by the SEC.  Non-accredited investors are able to invest in 506(b) offerings per SEC guidelines.  

Minimum investment amounts vary depending on each offering.  

We have different criteria or hold expectations depending on the property though generally we target 3-10 years. Different circumstances can impact this with refinance events.  Please contact us to discuss the different hold periods.

Our main focus is consistent, above average returns for our investors with a goal to 2X+ your investment.  Another metric would be a yearly 15-20% return on your investment. With most of our offerings we'll provide a Preferred Return, providing you a targeted yearly yield return on your investment.  Each offering will show both yearly and overall expected return structures in Annual Rate of Return, Internal Rate of Return and the overall Equity Multiple for your investment. We will always keep investors informed of performance and any adjustments to the initial projected hold time-frame.

As an investor and partner in the property, everyone receives the same tax benefits. By providing a "cost segregation" report at the start of ownership, this allows the asset to be depreciated on an accelerated schedule.  Usually fully within the first several years. 

Partnerships are generally not subject to federal or state income tax, but instead are issued a K-1 at the end of each year. A K-1 is an annual tax form that is used for business partnerships to report income, losses, capital gain, dividends, etc.  Each investor will receive a K-1 annually with their share of the partnerships gain or "losses" (due to the cost segregation) that can be included in their tax return.  Generally these losses can be used to reduce your tax burden.  

Although multi-family real estate is often considered stable and safe among other investment asset classes, there is always risk to any investment type. Though much less uncommon with real estate, the main factors strongly rely on whom you're investing with, their track record and the knowledge and know how to control and be prepared for unexpected circumstances. 

• Knowing the Market - We leverage our relationships with local Brokers, knowing the markets we're investing in. 
• Conservative Underwriting - Detailed, thorough underwriting allows us to know and be comfortable with our projections but also prepared for the unexpected.
• Operation Know How - With decades of experience, successful and proven systems help avoid errors.  
• Proper Debt - Obtaining the proper debt on any deal is crucial.  Fixed vs Floating vs Bridge. We secure the most favorable loans with the least amount of risk and never over-leverage.