You collect rental income without the work of being a landlord. Passive multifamily investing also provides risk diversification (compared to stocks or single family rentals), builds equity (through tenants paying down the mortgage), appreciation (through rental market growth), and tax benefits (such as depreciation deductions and tax deferral).
Some risks include a possible decline in the rental market or a capital call for unforeseen expenses e.g., a new roof or HVAC.
First, we underwrite our deals conservatively for cash flow. Second, we make capital and operational improvements that create equity as a hedge against market risk. Third, we account for reserves during the capital raise to hedge against the risk of unforeseen expenditures.
No, we offer opportunities for both accredited and non-accredited investors. The SEC defines an accredited investor as an individual having a net worth of at least $1,000,000, excluding the value of your primary residence, or income at least $200,000 each year for the last two years (or $300,000 combined income if married) and having the expectation to make the same amount this year.
For most opportunities the minimum investment is $25,000.
Absolutely yes! Many investors choose to invest through a self-directed IRA or self-employed 401(k). For more information Click Here.
Yes, we are willing to consider investments with 1031 cash on a case- by-case basis. Please schedule a call to discuss further.
As the passive investor you are a limited partner “LP”, and the sponsor is the general partner “GP”, in an investment company formed for the purpose of owning the property. Your ownership interest entitles you to a share of the income and gain from the property, as well as the return of your capital contribution.
Generally, investors have the rights proscribed to them under a subscription agreement. Any debt financing is secured by the property and the sponsors who sign the loan. You should consult with your legal advisor regarding personal considerations.
Generally cash flow distributions are made on a quarterly basis directly to your bank account via ACH transfer.
It depends on the opportunity. For example, if the business plan for the property is five years, you should not expect to receive your full capital investment back until at least five years. In some cases however, a refinance or sale of the property may trigger a return of some, or all, of your investment.
The sponsor or "GP", is the person or entity responsible for underwriting and acquiring the property, obtaining financing, structuring and marketing the investment opportunity, and managing the asset and investment opportunity.
The sponsor is compensated with a portion of an ownership interest in the opportunity. They are also compensated for the cost of asset management services with an annual fee (generally 2%) .
