Intelligent and Trustworthy Real Estate Investing.
Intelligent and Trustworthy Real Estate Investing.
These frequently asked questions cover the most common concerns that we often hear from our first time investors. We want every prospective investor to be fully confident that they understand the pros and cons of any specific type of investment.
NO, as in most investments there are no guarantees. As will be explained in the Private Placement Memorandum, under unusual circumstances it is possible for the entire investment to be lost.
This is determined by the specific property and improvement plan and will be specified in each property offering. Typically we intend to hold properties between 3-7 years.
Each property has an anticipated rate of return and a proposed exit strategy. For example, our strategy may be to hold a property for 4 years OR until we hit a specific appreciation hurdle, like a cumulative % return. The first of these two factors to hit will cause to sell the property and pay off investors with available proceeds.
Yes, we welcome introductions to your family and friends – but remember, we make it a point to get to know each and every investor, and to make sure they know us, before we invite them to invest. At any given time we are underwriting/evaluating 3-5 properties that we have received from our strong relationships with brokers. Several are pocket listings that we learn about before they are shared with other investors.
The benefit of this type of investment is you evaluate past performance of the specific project and the sponsorship team,before you invest. You are provided a Private Placement Memorandum, Operating Agreement, and Subscription Booklet along with the latest and 12-month Trailing Profit & Loss, Rent Rolls, Property Brochure, Due Diligence Reports, Lease Audit reports, Executed Sales Contract and more. You see documentation on the profit history of the specific asset you would be investing in, what the current issues are, how the team intends to resolve them , the specific plan and anticipated returns.
Each project has experienced securities legal counsel to help draft the appropriate documents. Commercial real estate counsel helps review loan documents, purchase and sale agreements, and property transaction documents to handle closings.
The property is covered by insurance to mitigate physical damage and liability risks. Property is also insured for loss of rent during rebuilding and carries a full replacement cost with an Umbrella Policy on each property.
To lose all of your investment, something drastic would have to occur that would lead to foreclosure; such as all of the tenants would have to move out due to an undiscovered hazard; or an environmental hazard could completely destroy the property and the insurer fails to pay for the extent of the loss; or US financial markets would have to crash with no refinancing available when a loan on a property is coming due, et al. We perceive this risk to be small, because we buy at a reasonable rate, without overleveraging, and then further increase value by enhancing the property and increasing income.
Sponsor Teams appoint reputable, experienced property management companies to manage all of the assets acquired, to manage the project optimally. This ensures immediate actions and strategy to promptly reverse any negative trends noticed.
Each acquisition is unique, depending if there is existing financing in place, whether the current owner will be carrying back financing, etc. Depending on the scale and value of the asset, most deals will include between 3-25 investors.
Yes. Self- directed IRA’s and pension funds can invest in real estate.
IRA and 401K funds can typically be rolled over into a self-directed IRA account. The custodian is an intermediary that you direct. There are several self-directed IRA custodians,already on our team.
The Sponsorship Team and its Affiliates oversee the management of the properties and execute the value add plan. The property management company on Project Team is fully equipped to manage the asset on a day to day basis with their team of professionals. Each property has its own Community Manager, Assistant Community Manager, Lead Maintenance Technician and Assistant. Typically, 4-5 full-time staff manage each asset acquired.
We are actively looking for interested investors. You may qualify to invest with us as either an accredited or sophisticated investor according to SEC guidelines. Click the “Start Investing” button below to fill out our investor form and find out if you qualify to join our multifamily investment team.
