FAQ

Multifamily investments offer tax advantages like depreciation, mortgage interest deductions, and deferred capital gains through 1031 exchanges, enhancing your returns.

We select properties based on market trends, location demand, financial stability, and growth potential to ensure investor success.

As a partner in the LLC that purchases the properties, you will receive a K-1 tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions, and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.

A rate of return often used in real estate transactions. The calculation determines the cash income on the cash invested.

Calculation: Annual Dollar Income Return / Total Equity Invested = CoCR

A rate of return on a real estate investment property based on the expected income that the property will generate. The capitalization rate is used to estimate the investor’s potential return on his or her investment. This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property.

When acquiring income property, the higher the capitalization rate (“Cap Rate”), the better. When selling an income property, the lower the Cap Rate the better. A higher cap rate implies a lower price, a lower cap rate implies a higher price.

The limited partner (LP) is a partner whose liability is limited to the extent of the partner’s share of ownership. In apartment syndications, the LP is the passive investor and funds a portion of the equity investment.

The preferred return is the threshold return that limited partners are offered prior to the general partners receiving payment.

The acquisition fee is the upfront fee paid by the new buying partnership entity to the general partner for finding, analyzing, evaluating, financing, and closing the investment. Fees range from 2% to 5% of the purchase price, depending on the size of the deal.

The PPM (Private Placement Memorandum) is a document that outlines the terms of the investment and the primary risk factors involved with making the investment. The four main sections are the introduction, which is a brief summary of the offering, the basic disclosures, which includes general partner information, asset description and risk factors, the legal agreement, and the subscription agreement.