Q: What returns should I expect on my investment in apartments?
A. The exact percentages will vary from one investment to the next. We’ll make sure the projected returns meet your criteria before you invest. You will also receive a portion of the profits from the sale of the asset at the end of the project.
Q: When and how do I get paid?
A: Money is distributed to the investors on a quarterly basis based on the profitability of the apartment. It will be directly deposited into your bank account or retirement account.
If the property requires renovations or repositioning it could be 12+ months before distributions begin. It is dependent on the business plan of the specific apartment.
Q: How long should I plan to have my money invested?
A: The term of investment is dependent on the business plan which is specific for each apartment. The hold period can range from 4-6 years.
During this time, you will receive cash flow returns, but your initial investment cannot be withdrawn.
Q: What is the minimum investment amount?
A: The minimum investment can vary. Typically, it is $50,000, $75,000 or $100,000 depending on purchase price of the apartment.
Q: What is an accredited investor? Do I need to be one?
A: An accredited investor is someone who meets certain requirements regarding income and net worth, based on Securities and Exchange Commission (SEC) regulations. This is so that the SEC can ensure proper protection for all investors.
To be an accredited investor, you must satisfy at least one of the following:
- Have an annual income of $200,000, or $300,000 for joint income, for each of the last two years, with expectations of earning the same or higher income this year.
- Have a net worth exceeding $1 million, not counting your primary home.
However you do NOT need to be accredited to invest in all our apartment deals.
You can invest with us if you are considered a sophisticated investor. Which means you actively manage your current investment portfolio and are familiar with thoroughly evaluating an investment’s value.
Q: What is a real estate syndication? How does this work as a passive investor?
A: A syndication is simply a pooling of resources, whether time, money or otherwise. It is much like crowdfunding. A real estate syndication is a way for your money to be pooled with other investors to jointly purchase large multi-million dollar apartment complexes.
As a passive investor, you simply contribute money to apartment syndication and enjoy the benefits of direct ownership without any of the property management responsibilities.
Q: What types of apartments do we buy?
A: We focus on B and C Class multifamily apartment communities with 100+ units so that there is sufficient scale to benefit from professional property management. We also closely evaluate the population, job, and income growth trends as well as crime trends and fundamentals of housing supply and demand in the market.
Identifying the “right” deal in which to invest can be a long process typically involving reviewing and analyzing many, many deals before finding one that meets our criteria for investments.
Q: Are multifamily apartments recession resilient?
A: Yes, we believe so. People will always need places to live; therefore, the demand for housing — particularly affordable and high-quality housing — will remain high even during a downturn.
We invest in solid B and C Class apartment communities located in good neighborhoods. Investments in this asset class tend to be lower risk because the tenants are more financially secure.
This investment strategy ensures that occupancy and Net Operating Income (NOI) will remain high even during a recession, mitigating risk and protecting your investment.
Q: What are the tax advantages of investing in apartment syndications?
A: Please consult with your tax professional or CPA to obtain the most accurate tax information for your unique situation.
As a real estate syndication investor, you’ll typically gain the tax benefits of property ownership, including depreciation and cost segregation, which can help lower the taxable passive income you receive.
Each year, you’ll receive a Schedule K-1 tax form to include with your tax filings. This form reports your income and losses for the investment.
Q: Why do you partner with other real estate businesses on deals?
A: Finding deals that work from a returns perspective is a key challenge. There is a lot of competition to purchase large apartment complexes which include Wall Street investment firms.
Therefore we are constantly in contact with a number of trusted partners who may have access to deals that we like. When presented with such a deal, we do our own due diligence on the market and financials of the deal before deciding to partner on a specific deal.
Q: What are my funding options?
A: You have many funding options when investing with us. Of course, you can invest with cash but also with your Self-Directed IRA, Solo 401K, SEP IRA, Simple IRA, Trust or LLC.
Q: What are the typical communications sent out after a deal closes?
A: For each deal, you will receive monthly updates on the status of the business plan which includes the financial performance and status of any improvements to the apartment.You will be consistently informed of what is happening with your investment dollars.
Q: How do I get started?
A: Getting started is easy!
First, watch our webinar Real Estate Investing Reimagined to learn the basics of apartment investing. When you are ready, Join the Investor Circle.
It is free and there are no commitments to invest. When we find an investment opportunity that matches your objectives, we’ll share the details with you!
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