Faq
Frequently Asked Questions
New to Multifamily Investing and looking for some answers, we got it all covered, right here.
Syndication is a way for multiple investors to pool their money together to invest in a larger real estate project that they wouldn't be able to finance on their own.
Syndication allows investors to access larger real estate projects with potentially higher returns than they would achieve on their own. Investors can also benefit from the expertise of the syndicator, who is responsible for managing the project.
As with any investment, there are risks involved. Syndication investments are illiquid and may require a long-term commitment. Investors may also face the risk of loss of capital or a lower-than-expected return.
It's important to do your due diligence and evaluate the track record of the syndicator and their team. You should also review the investment offering memorandum, which provides details about the project, financial projections, and risks.
A preferred return is a percentage of the profits that the investors receive before the syndicator receives any compensation. It's often used to provide investors with a minimum return on their investment.
A waterfall structure is the way in which profits from the investment are distributed among the investors and syndicator. It typically involves a tiered structure where the investors receive a certain percentage of profits before the syndicator receives any compensation.
Certainly. We welcome our investors to visit the property at any time before investing, as well as during the project's lifespan. We believe in transparency and encourage our investors to stay informed and involved in the project.
Funds raised through a real estate syndication are typically used to acquire and manage the property, including any necessary renovations or improvements. The specific use of funds will be outlined in the offering documents provided to investors.
During a refinancing event, investors may receive a return of capital, which means that some or all of their original investment is returned to them.
Anywhere from a 3-5 years depending on the project and the investment strategy.
Yes, it's possible to invest in a syndication with a self-directed IRA, but you'll need to work with a custodian that allows alternative investments. You should also be aware of any tax implications associated with investing in a syndication with an IRA.
An accredited investor is an individual or entity that meets certain financial criteria set by the Securities and Exchange Commission (SEC). To be considered an accredited investor, an individual must have a net worth of at least $1 million (excluding the value of their primary residence) or an annual income of at least $200,000 (or $300,000 for a married couple) for the past two years with the expectation of earning the same or higher income in the current year.
A sophisticated investor is an investor who has the knowledge, experience, and resources to make informed investment decisions without relying on the same level of regulatory protection as less experienced investors. Sophisticated investors may be able to participate in certain investment opportunities that are not available to retail investors.
Generally, investors can invest in real estate syndications using a variety of accounts including personal investment accounts, joint accounts, and entity accounts such as trusts, limited liability companies (LLCs), limited partnerships (LPs), C corporations, and S corporations.
A K-1 is a tax form that reports the income, gains, losses, and deductions of a partnership or limited liability company (LLC) to the individual investors in the partnership or LLC. Real estate syndications are typically structured as partnerships or LLCs, so investors will receive a K-1 at tax time.
Distributions to investors are typically made on a quarterly or annual basis, depending on the specific syndication. The frequency and amount of distributions will be outlined in the offering documents provided to investors.
No, investors do not need to participate in day-to-day maintenance of the property. The syndication sponsor is responsible for managing the property on behalf of the investors.
To get started, you can register on our website and schedule an introduction call (Free consultation). Once you're added to our investor list, you'll receive regular newsletters, educational materials, and announcements about new investment opportunities. When a specific deal becomes available, we'll provide you with all the necessary information and instructions on how to participate.