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Frequently Asked Questions
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What is Syndication?
Syndication is the process of bringing investors together to pool their financial resources to acquire one or more real estate assets.
What are your Projected Returns?
We acquire and underwrite our deals to deliver an Average Annual Return (AAR) in the 15-17% range; and an average and annual Cash on Cash return (COCR) of 4-8% subject to market conditions. We intend to provide an Internal Rate of Return (IRR) of 15-20%. Overall, we are intending to look for 2X ROI (Return on Investment) over the life of the investment for a 5–7-year hold, with a good portion of that return coming from the refinance/sale of the property. Some hold periods are shorter (3-5 years) while some are longer (5-7 years).
Minimum Investment Requirement: $50,000 minimum investment is required, and depending on the deal and previous relationship with the investors, we will accept a lower amount.
How do you communicate with your investors?
We’ll provide monthly/quarterly email updates as follows:
Monthly Updates: Brief updates on what has occurred during the previous month.
Quarterly Financial Reports: Detailed information on financial results and investors’ distribution info.
Quarterly Distributions: Distributions sent two weeks after the close of each quarter.
Tax Documents: A K-1 is sent on or before March 31st.
We utilize investor management software which will be your portal to access documents and see the real-time status of your investments.
What is a Private Placement Memorandum (PPM)?
The Private Placement Memorandum (“PPM”) serves to disclose critical information to potential investors ensuring they are properly informed regarding the company’s operations, investment risks, SEC disclosures, and offering terms prior to investing. A private placement memorandum will also have Exhibits to disclose additional needed information critical to the investment decision such as historical and projected financials, subscription documents, related contracts, company bylaws, and other pertinent supporting data. The PPM will be prepared by a syndication attorney.
What are the Tax Impacts?
There is satisfied tax efficiency in apartment syndication. As partial partner in an apartment syndication, you’ll benefit from your initial investment contribution on deductions for property taxes, loan interest, and depreciation. A popular strategy called "Cost Segregation" is sometimes an advantage to accelerate depreciation for the purpose of tax benefit. Call us if you have more questions on Cost Segregation.
When do investors get paid?
We quarterly distribute the investors’ money. Those funds are directly deposited to their account. Investors are able to track the history of their quarterly checks and upcoming checks on our website using the investor portal.
When will I get my original investment back?
Investors’ initial investments can be returned in the third year, and this may be from a cash-out-refinance transaction or a sale. If there is an instance where the market is shifting down, we may continue to cash flow longer to year 4/6.
Can you use a retirement account to invest?
Yes. We can certainly help you invest using your retirement money from a self-directed IRA, solo 401(k), or a eQRP which has many advantages over the other retirement accounts.
