01.
What differentiates you from other syndicators?
Track Record – I’ve been investing in apartment buildings since 2015. I started as a passive investor, so I understand what it’s like to invest with others.
I fell in love with real estate and after years of studying, training, and mentorship I began leading my first acquisition in 2019. Since then, I have acquired 8 properties and I successfully sold one of those deals outperforming expectations by providing a 25% IRR to my investors.
Alignment – My team and I invest right alongside our investors because we only do deals we believe in.
Business Acumen– I spent 12 years as a management consultant and 5 years as a partner scaling a startup into a $30M/year business. I’ve seen inside hundreds of businesses, and I understand what works and what doesn’t. I apply all of these lessons learned to how I run my properties and build my business.
Transparency – Communication is critical to any successful relationship. We send out monthly email updates for each property including occupancy rates, renovation updates, rental rate actuals vs. projections, capital improvement updates, issues & solutions, and any other updates relevant to the project. Then, we send out detailed financial information on a quarterly basis so investors can have a granular look at the operations.
02.
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 is only $50,000
03.
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% of the total equity invested.
04.
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.
05.
What is your experience?
See my About page for my background and FAQ #1 for more about my track record.
06.
How do taxes work on an investment?
You receive your share of the depreciation from the asset, and can often offset the income from the distributions you receive throughout the year. You should consult your tax advisor for more information regarding 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.
07.
How frequently do I get paid?
We provide quarterly distributions from the profits of the investment. These distributions typically start between 6-12 months after acquisition.
08.
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 a higher risk with higher upside potential. Turnkey is a 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 cash-flowing. We improve the operations to increase cash flow and value to the next buyer.
09.
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
- Confirming our assumptions
- Surveying the market, and performing rigorous due diligence
10.
Can I get my money out of the deal?
These types of deals are generally illiquid during the hold period. The specifics on how/if an investor can pull money out, are outlined in the Private Placement Memorandum (PPM). Generally, an investor can sell shares with the written consent of the general partnership.
11.
What are my responsibilities?
The investor’s only responsibility is funding the deal.
12.
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 a new investment. Here are some of the most common questions I get asked to give you a jump start.
