Here’s how the SEC defines an accredited or sophisticated investor:

“An accredited investor, in the context of a natural person, includes anyone who:

earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

There are other categories of accredited investors, including the following, which may be relevant to you:

any trust, with total assets in excess of $5 million, not formed specifically to purchase the subject securities, whose purchase is directed by a sophisticated person, or
any entity in which all of the equity owners are accredited investors.

In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.”

YES!!! We offers investment opportunities for accredited and sophisticated non-accredited investors. Due to SEC guidelines, we only publish Accredited investor projects on our website.

If you are non-accredited and would like to learn more about our investment projects, please fill out our investor application and we will contact you when we have non-accredited opportunities.

You can get started as an investor with us by completing our online investor application.

We currently solely invest in multifamily apartment buildings, one of the most recession proof asset classes within the real estate sector, as the United States population continues to grow. Even with continued advancements in e-commerce and remote work, which threatens the retail and office markets, people will always need to live somewhere. Within this segment, we focus on B/C class multifamily properties, which are properties that service residents earning 80-120% of an area’s median income (the bulk of the renter population). This focus positions us in the market segment shielded most from the ups and downs in economic cycles.

In most investment opportunities, investors are a limited liability owner of the property which comes with all the ownership benefits like cash flow and equity ownership. The property is owned by a “Company Name” entity for which that property is the only asset, which reduces liability. Investors are a direct shareholder in this business entity, meaning they are a part owner of the LLC that owns the property. This allows for a direct flow-through of cash flow, tax benefits, and upon sale of the asset, allows investors to participate in the equity growth during the hold period.

Over a 5-year period, we aim for our total debt to be 50-60% of an asset’s value. While we start with 70-75% leverage based on purchase price, we rapidly decrease that LTV by forcing appreciation of the property through value-add improvements, such as implementing professional management, increasing revenue, and decreasing expenses. This conservative approach provides an additional buffer from short-term fluctuations in the real estate market.

If you’d like to learn exactly how you can invest in syndications via a retirement account, listen to episode #125 on The Multifamily Wealth Podcast on iTunes or Spotify.

Yes. Investing in multifamily in a structure like ours is perfect for retirement plan investing because your involvement is by definition passive. All you need to do, if you haven’t already, is set up a SELF-DIRECTED IRA with an independent custodian, like Directed IRA, Specialized IRA Services, or Vantage IRA. Once that is done you can invest using your IRA/401K/ROTH-IRA… or several other self-directed retirement account forms.

All our investment and Private Placement Memorandums are based on individual properties, and every property is different and will therefore offer different returns.

Our returns typically consist of two parts:

Preferred Return from Cash Flow: Each investment is selected such that it pays an minimum average annual preferred return of at least 6% (depending on the individual deal this could be higher than that) which is paid out quarterly via direct deposit into your bank account or by check. In other words, the investors get paid first before the sponsors get paid anything. This protects you as an investor and makes sure we only pick projects that have strong cash flow outlooks.

Profit Share/Back End Profit: Upon a Sale or Refinancing of the property it is our goal to return 100% of the initial invested amount to each investor, and then do a profit split between sponsors and investors.

When you invest in a REIT, you are buying shares in a company, just like when you buy shares in a stock. You do not own the underlying real estate, you own shares in the company that owns those assets.

When you invest in a real estate syndication, you are investing directly in a specific property. Together with the other limited partner investors and general partners, you will own the entity (usually an LLC) that holds the asset. Thus, you have direct ownership.

When you invest in an apartment REIT, that REIT will likely own and manage a lot of apartment buildings in multiple markets across the country. With a real estate syndication, you are investing in a single property in a single market.

With a REIT, you can invest a very small amount of money, just like a stock. Syndications typically have higher minimum investments, often $50,000 or higher.

When you invest directly in a property through a real estate syndication, you get the benefit of a variety of tax deductions, including depreciation. In some case those tax benefits can be quite substantial. The depreciation benefits often surpass the cash flow, so you’re showing a loss on paper while you’re actually getting positive cash flow. Further, you can use those paper losses to offset your other income, like income from your job.

When you invest in a REIT, because you’re investing in the company and not directly in the real estate, you do get the benefits of depreciation, but those are factored in before you get your dividends, so you don’t get any tax breaks on top of that, and you can’t use that depreciation to offset any of your other income. Andany dividends are taxed as ordinary income, which can contribute to a bigger, rather than smaller, tax bill.