Frequently Asked Questions
How do I know if I am a sophisticated investor or an accredited investor?
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)
Does the Deal Sponsor/Syndicator invest funds in the property with the investors?
Yes. We believe in all of our offerings and invest along side our investors in each syndication.
What is a typical minimum investment amount?
The minimum investment amount ranges from $25,000 to $100,000 for each syndication.
Can I invest through my entity (LLC, Corporation, Partnership, etc.)?
Yes. You can invest through an entity as long as the members meet the SEC investor requirements.
Do you accept foreign investments?
Yes, on a case by case basis as long as compliance with U.S. Securities Law is satisfied.
How often do you make distributions?
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.
Will there be any ramifications to my personal taxes?
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.
What are the typical returns for investors?
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 (need link to Contact Us) for more specific information regarding total returns.
Can I use my IRA or 401(k) to invest?
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.
Why invest in a Multi-family Apartment Syndication?
A Multi-family 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.
Can I cash out of the investment at any time?
No. Because this is a syndication, all investment funds will not be liquid through the life cycle of the syndication. Our typical syndication is 3-5 years. Although it is not part of our strategy, occasionally with returns that greatly exceed projections, we may refinance the property to return capital to investors.