Frequently asked questions

What is Cash-on-Cash Return?

Sometimes referred to as the cash yield, “cash-on-cash” calculates the income earned on the dollars invested in a property.

What is IRR?

Internal rate of return (IRR) is the annualized return metric that calculates both cash flow and equity returned over the course of the entire holding period.

What is real estate syndication?

Real estate syndication is a partnership of investors who collectively buy larger assets that may be unmanageable or expensive for individual investors. Usually, 25–30% of funds originate from both the syndicator and passive investors, while 70–75% comes from a lender or bank.

What does accredited investor mean?

An accredited investor is someone who meets income and net worth criteria set by SEC regulations. Accredited investors are allowed to participate in investments not registered with the SEC.

To qualify:

You need an annual income of $200,000, or $300,000 combined income for two years, with an expectation of maintaining or increasing it this year.

Your net worth must exceed $1 million, excluding your primary residence.

Do I have to be an accredited investor to invests?

No, accreditation isn't necessary for investing in multifamily real estate.

What is a K-1?

As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a 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.

When are distributions paid?

For any project that is distributing, we send out quarterly distributions.

Can I Visit the Property?

Absolutely! Investors are allowed to visit the property before investing and during the life of the project. If you give us a heads up, we can ensure someone is there to show you around and answer any questions.