Can I pull my money out or sell my shares before you sell the property?
Investing In real estate Is considered an “illiquid” Investment. Expect to have your monetary Investment tied Into the Investment until the project’s disposition or a cash-out refinance.
How often do I get a cash distribution?
Investor distributions are calculated and disbursed on a quarterly basis. Depending on the scope of the investment offering; however, the first distribution may occur 6-12 months after acquisition due to getting the property stabilized. This information will be Included In your subscription documents before you invest.
How often do I get updates on how the investment Is performing?
The sponsors provide monthly updates to all passive Investors on property performance, Important Information, and plans moving forward. Sponsors also Include relevant reports Including but not limited to the property’s rent roll, profit and loss statement, and balance sheet.
How are Sponsors compensated?
Sponsors can be compensated in a variety of ways. The most common forms of Sponsor compensation Include: Acquisition fee (typically 1-2% of the sales price, paid at closing), Asset Management fee (typically 2% of total monthly revenue), and Ownership shares (typically 20% ownership). The projected returns In an Investment offering are calculated as net of the Sponsor compensation (meaning the Sponsor’s compensation has already been considered In the calculation of the projected return In the offering to investors). Details will be Included In the Investment offering to investors prior to Investing.
Do Sponsors Invest In the property as well?
Our Investment group always Invests our own money Into the Investment offerings we present to investors. In most situations we are the “biggest Investor” (have the most funds Invested) In the project. We feel It Is Important that the Sponsors have “skin In the game.”
Do I need to be an Accredited Investor to invest with you?
Most of our investment offerings are offered as a Reg. D, 506B. This means the SEC does not require that you be an accredited investor to invest in this type of offering.
How can I be notified of an Investment opportunity?
If you haven’t already, you should reach out to a Principal at our firm and create a business relationship with us. From there, you can be added to our distribution email list. Whenever we have identified an Investment offering, we will email you details of the project. The email will Include an executive summary and the ability to either “soft” or “hard” commit to the offering. Those that commit early on will have preference In being accepted to Invest as our Investment offerings are considered on a first come, first serve basis and typically oversubscribe shortly after announcement. We will then also conduct a webinar to personally explain the Investment offering.
How long do I have to wire my money after I commit to Investing?
In order for us to close on the acquisition of the property, we need Investors to fund as quickly as possible. Typically we ask that Investors wire their Investment commitment to us as quickly as possible and no longer than a week after their commitment. Our offerings typically get filled quickly and require us to have a “waiting list.” If an Investor takes too long to fund we will open up their slot to the next Investor on the waiting list so they don’t miss out.
What happens to my money If I wire them to you then the property fails to close?
Your funds will be kept In an escrow account until time of closing of the property. In the event the property fails to close, 100% of your investment funds will be promptly returned to you.
Is there risk in Investing?
There is always risk in all investments. It is up to you to understand and analyze the level of risk you are comfortable with before investing. Historically, real estate is considered a lower risk investment vehicle. Generally in a syndication, your risk exposure is limited to the amount you invest.
If this is such a good investment then why is the owner selling it?
Potentially for the same reasons we will sell the property.
A) Just like you or other investors, most investors don’t want their money to be tied up for a long period so the seller will sell the property once they have achieved their projected returns for their investors.
B) Properties typically need a cash injection every 5-10 years (whether to upgrade the building or to pay for major repairs), selling the property to a new group allows the buyer to bring new capital for these purposes.
C) We seek underperforming properties to acquire, many times inexperienced or bad operators may sell at a discount just to get out of a bad situation they got themselves in.
D) The term on their loan may be up and they must sell before the balloon payment is due. There are countless other reasons, these are just a few examples.
Can I invest In a syndication using my retirement account?
Yes, you can Invest In real estate; specifically a syndication, using retirement funds. Common retirement vehicles used to Invest In real estate Include a Self-directed IRA, eQRP, or a Solo 401k. If you do not have one of these vehicles set up already, you can quickly and easily have funds from another form of retirement account (401k, IRA, etc) transferred to a real estate friendly retirement vehicle In order to Invest.