What differentiates you from other syndicators?
Track Record – My firm Birge & Held has completed over 60 acquisitions in the past 12 years. We have successfully exited 24 of those deals and outperformed our investor expectations by providing an average 20% IRR and 1.9X equity multiple over an average 4 year period.
Scale – With $1.5B+ in assets under management and a long track record of success we command the best terms from vendors and lenders keeping costs down and passing those saving through to our investors.
Vertical Integration – Our Internal property management, asset management, and construction teams work together seamlessly and give the ability to implement advanced strategies, such as our 8-hour rehab, which is impossible when working with third parties.
Alignment – we co-invest 10%-20% of the equity in every deal right alongside our investors because we only do deals we believe in.
Transparency – Communication is critical to any successful relationship. We send out detailed email updates monthly to our investors, including occupancy rates, renovation updates, rental rate actuals vs. projections, capital improvement updates, issues with proposed solutions, and any other updates relevant to the project. Then, we send out detailed financials on a quarterly basis so investors can have a granular level look at the operations.
How many investors do you have in a typical deal?
It depends on the size of the equity required, which is different for each deal. The average investment size is $100,000, but the minimum us just $50,000
Do you invest in your own deals?
Yes, I invest in every deal right alongside my investors. My partners and I typically make up 10%-20% of the total equity invested.
Do your family and friends invest in your deals?
Yes, my first investors were family and friends and they still invest today. More have joined in as we’ve proven our success.
How do you know your business partners?
Early in my investing career, I started as an LP (passive) investor with Birge & Held, my current company. I was so impressed with the communication, professional platform, and the returns that I made multiple investments. Overtime we built up a strong relationship, and we decided to form a partnership.
How do taxes work on an investment?
You receive your share of the depreciation from the asset, and can often you that to offset the income from the distributions you receive throughout the year. You should consult your tax advisor for your unique situation.
For your tax return, you will receive a K1 for each investment at the beginning of the year to provide to your tax return preparer.
How frequently do I get paid?
We provide quarterly distributions form the profits of the investment. These distributions typically start between 6-12 months after acquisition.
Why did you decide to pursue this type of business model?
We are “value-add” investors.
There are typically 3 types of business models when acquiring properties: distressed, value-add, turnkey
Distressed has higher risk with higher upside potential. Turnkey is lower risk with lower upside potential. Value-add has the best of both. lower risk and high upside potential because we are acquiring stable assets that are already cashflowing. We improve the operations to increase cashflow and value to the next buyer.
What is the worst-case scenario?
The worst-case scenario is we lose all of our money. This is true of any investment. However, we take every precaution to ensure this doesn’t happen, such as buying deals that are already producing a profit, conservatively underwriting, overbudgeting for expenses, confirm our assumptions, surveying the market, and performing rigorous due diligence.
Can I get my money out of the deal?
These types of deals are generally illiquid during the hold period. The specifics of how/if an investor can pull money out is outlined in the Private Placement Memorandum (PPM). Generally, an investor can sell shares with the written consent of the general partnership.
What are my responsibilities?
The investor’s only responsibility is funding the deal.
What is the minimum investment?
The minimum investment in most deals is $50,000.
Frequently Asked Questions
It's very common to have a lot of questions when making an new investment. Here are some of the most common I get asked to give you a jump start.