FAQ
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Investing in multifamily apartments allows for better controllable risk and returns than with stocks and bonds. Increasing population, decreasing homeownership, and decreasing apartment vacancy rates all point to the consistent demand for apartment living space. As a passive investor, you can reap the same benefits of a real estate investor but without the hassle of having to do anything.
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There are three major risk factors: the deal, the market, and the team. To address these risk factors, we conservatively underwrite our deals to plan for a worst-case scenario. We extensively research the available markets and our final decisions are based on the criteria that best support our investment requirements. Our team consists of highly qualified and experienced members who we hold to our company’s values.
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The asset is owned by an LLC set up by the general partnership, and investors buy shares of the LLC.
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An investor’s sole responsibility is funding the deal.
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Generally, the money is used to for the loan down payment, debt origination fee, closing costs, renovation costs, operating account funding, and fees paid to the general partner.
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Our minimum investment requirement is $50,000.
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We pursue deals that can provide cash flow, secure long-term debt, and maintain adequate cash reserves. This investment strategy ensures that our deals will produce income regardless of the market condition.
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Yes, you can invest with an LLC. Consult with your accountant on how to invest with an LLC.
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Yes, you can invest through your self-directed IRA. Please consult with your current custodian on how to invest with your IRA account.
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The process for how/whether an investor can pull their money out of the deal will later be outlined in details in the Private Placement Memorandum (PPM). Generally, investors can sell their shares and have to find another qualified investor with the consent and approval of the general partner.
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You will be provided with a special tax form (Schedule K-1) for partnerships each year that details your portion of the partnership’s tax liability. Partnerships are generally taxed at an individual level, and the K-1 form is provided so you can include it in your annual tax return. Tax benefits of investing with us in real estate include depreciation, which most likely can be used to defer tax payments of your distributions until the sale of the property if the depreciation is greater than the distribution paid out each year. Consult with your accountant on tax benefits of investing in real estate.