How It Works

Syndication is the pooling of investor money where the investor is typically a limited partner, and the general partner puts the deal together and manages the business plan to provide a return for the benefit of all investors.

When we buy an existing apartment complex, meaning already built with tenants living there, we underwrite (estimate) to deliver an average annual return in the 15%-20% range. Overall, we’re are looking to double your money (2x equity multiple) over the life of the investment (typically a 5–7 year hold) with a good portion of that return coming from the sale of the property.

On our NEW construction projects, when we are buying the land and then building the apartment complex ourselves, the business plan is different and therefore the numbers tend to be different.  We tend to see higher returns on these projects, but there is more risk.  Our current offering is a bucket of multiple new construction projects and return projections are 35%+ per year, once the properties are sold or refinanced.  Click the Invest Now button above to check it out!

We target a 5–7 year hold on our investments. This provides ample time to execute our value-add plan and then cash flow for a few years while looking for an opportunistic sale. Some investor principal could be returned as early as year 3 from a refinancing event, or we may want to continue to cash flow until year 7 if the market is down in year 5.

Yes. Each investment will be held in its own LLC of which you, the investor, will own a proportionate percentage of the shares.

Minimum investment amounts may vary from one deal to another. A typical deal for accredited investors only would have a $50,000 minimum investment.

However, we have an investment opportunity that allows ALL investors, even non-accredited, to invest for as little as $1,000 in our Reg CF offering.  Click the Invest Now button above to check it out!

Also, get on our investor list so you don’t miss future opportunities.

Distributions are made quarterly from available operating cash flow and are automatically deposited into investors’ bank accounts. Investors are notified of upcoming distributions and are able to track their distribution history through their investor portal.

We’ll provide monthly/quarterly email updates as follows:

• Monthly Updates: Brief updates on what has occurred during the previous month.
• Quarterly Financials: Detailed financial results and distribution information.
• Quarterly​ Distributions: Distributions sent 15 days 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 at any time.

Apartment syndications are very tax efficient. As a partner in our limited partnership, you will benefit from your portion of the investment’s deductions for property taxes, loan interest, and depreciation. We like to use a cost segregation strategy as well to accelerate depreciation. It’s not unusual on a $100,000 investment to return actual cash in your pocket of $7,000 while experiencing a paper loss on your annual K-1. That loss can then be used to offset other passive income. At the time of sale, the partnership gains are treated as long-term capital gains.

The risks are typical to all real estate investments: Asset Risk, Manager Risk, Economic and Local Market Risk, Over-Leverage Risk. We mitigate risk by targeting proven assets and markets, where the current owner is generating good cash flow (our due diligence includes auditing the trailing 12-month financials, bank records, and tax returns), partnering with a good lender, insurance company, and property manager, and staying on top of all of these team members to make sure they are doing their job to our standards. Lenders will not partner with us unless we have a good business plan, conservative underwriting (banks will underwrite the deal as well), have adequate insurance, and have an inspection completed by outside experts.

Yes, whenever possible to show an alignment of interest. We want our own money in multi-family real estate, just like you do. We are so confident in this asset to the point we go out and raise additional funds through syndication to leverage the size of deals we can invest in.

Economies will go up and down for the rest of time.  There is nothing we can do about it.  The worst thing we can do as real estate investors is sit on the sidelines for a long period of time, waiting for the perfect buying opportunity.  The value of commercial real estate goes in one direction over time.......up.  Some sectors like single-family housing, retail, and hospitality may be more affected by a poor economy, but multifamily has consistently proven itself to be a winner, even in the worst of economies.  We provide housing, which is a basic human need.  The demand for this will never go away, and the demand for investors wanting to buy large commercial multifamily properties will never go away because its one of the safest investments you can make.  On top of that, the commercial multifamily market tends to get stronger in poor economies, as more people are pushed to rent.  What we want to do is be strategic about when we decide to sell, which is completely up to us.

We’ll let you know when we have an investment available (click here to check out our current offering). We start the equity raise process with investors immediately and it runs concurrent to due diligence and the bank’s underwriting which takes about 5 weeks. Typically, investors reserve their spot in the first week. In the fifth week, investors review and sign the PPM and transfer funds to the escrow account. Then we close on the property 2-3 weeks later.

Our current offering is a "fund".  That means that your investment will be spread across multiple properties.  You can invest in the fund NOW, until we've raised enough money.  If you are interested, take action quickly before it closes by clicking the link above or the INVEST NOW button at the top of the page.

Yes. We model different scenarios to show our break-even point for profitability given a decline in occupancy or if rents drop below projections. Most of our scenarios allow occupancy to drop between 65-75% to break even. Third-party data shows that in our target markets, the worst vacancy levels were around 85% during the 2009 financial crisis.

Yes. We can help you invest with retirement money from a self-directed IRA or solo 401(k). We can also guide you to take advantage of a great option that most people don’t know about, which would involve rolling your retirement funds into an eQRP. An eQRP has many advantages over the other retirement account types. Please inquire if you think this could be an option for you!

The returns forecasted to you are post fees. The most common fee is an acquisition fee based on the purchase price and is paid upon closing. This covers the general partner’s costs to find the deal, get it under contract, and do all of the work to close it. The second most common fee is the asset management fee which is compensation for managing the property manager, executing the business plan, bookkeeping, reporting, and distribution of money and K-1s. The asset management fee is aligned with the investor’s interest as it is based on the property’s revenues. Industry averages are 2-3% for each fee.

The Private Placement Memorandum (PPM) is required by the SEC and describes the offering, risks, includes the partnership agreement, investment summary, and subscription agreement. It is a lengthy legal document (approx. 100 pages) prepared by a syndication attorney. The subscription agreement section includes basic information regarding purchase and percent of ownership. The risk section highlights just about every possible risk that exists.