In short, yes. It would simply entail a slight difference in how you sign the subscription agreement and fund the deal, with no added degree of difficulty. However, there are some things to consider such as the UBIT (unrelated business income tax), which is why recommend consulting with your CPA or financial advisor in order...
Can I do a 1031 Exchange in your deals?
You cannot 1031 in to our deals since you are purchasing units of our Limited Partnership and not actually the property itself. However, although not guaranteed, there is potential to 1031 from one of our deals in to the next, given the right timing, thus providing the extremely powerful benefit of tax deferred growth.
How often are distributions made?
We distribute on a quarterly basis to all of our investors.
What risks may I face in this investment?
Like any investment, there are some factors that are outside our control (i.e. market conditions) that pose a risk of losing your entire investment. The same is true for other investment vehicles. However, for our approach in multi-family real estate, we can mitigate risks to a large degree, as outlined below: Conservative Underwriting. Due to...
What tax benefits will I realize from a passive investment in commercial real estate?
The beauty of real estate is partially due to its many tax advantages. Some to consider are below: a. Depreciation. Due to this factor, a Limited Partner may see a paper loss on his or her K-1 statement. This loss can also be used to offset other gains in your investment portfolio. b. 1031 Exchange....
Should I invest all of the capital I am seeking to invest into one deal or spread it across multiple deals?
The key to a strong investment portfolio is diversification, and thus would recommend spreading your capital across a number of deals. The amount of capital you should put to work in each deal will depend heavily on the amount of capital you are looking to deploy in total. If you are looking to deploy $1MM,...
What are some of the common fees of the General Partners?
We want to make clear that all fees are separate from the return projections. These fees will have no impact on the return projects you will see in any of our deal decks; the LPs are not paying any fees “out of pocket.” We make our money in our deals in three ways: Acquisition Fee...
What are the profit sharing terms between the Limited Partners & General Partners?
The terms will be specific to the investment opportunity, but our typical split is 70/30 between the Limited Partners and General Partners. Other options include an investor preferred return with waterfall afterwards. We aim to provide a structure that we believe is fair and understandable to everyone invested in the opportunity. This information will be...
Do you take non-accredited/sophisticated investors?
As most of our syndicated deals are structured as 506(b) under SEC Regulation D, in order to remain compliant we cannot accept non-accredited investors at this time.
Does the Sponsor invest in their own deals / why are they investing such a small amount?
In short, yes. We will invest alongside LPs in own deals to show alignment and also receive the strong returns we are projecting. As to small investment amounts, we are acquiring properties year-round. Investing in each of these deals would make our total investment very large. Additionally, occasionally we will serve asthe guarantor on the...
What is the Sponsor’s track record?
Ken Breeze has over two decades of experience in investment management, capital raising, and real estate investing. He currently owns controls over $80 million in performing multifamily assets all over the United States. Ken is supported by his professional A-class team, which you can read more about here.
What legal structuring will be used for my investment?
Each property will be owned by a newly created, single-purpose LLC. Shares of the entity will then be sold to each investor in accordance with his or her investment amount. Per SEC guidelines, we will send each prospective, qualified investor a PPM (Private Placement Memorandum) and Subscription Agreement prior to his or her investment. These...
How do I make my investment?
Prior to closing on the property, you can wire your investment directly into the subscription account of the fund. You can also send it by check.
How will I be updated on the progress of my investment?
The management team will send all investors a monthly update and and a quarterly report on the investment. However, we are available at all times to our investors as a resource for specific questions or general discussion throughout the life of the project.
What is the minimum investment?
The minimum investment is dependent upon the exact deal, but the typical range is $50,000 – $100,000, with $5,000 increments.
What are your buying criteria? What types of properties and markets do you look for?
We only look in metropolitan growth areas with diversified economies and population growth. In these areas we only look for value-add properties in order to immediately capture equity and buffer against any market downturns. You can view our comprehensive buying criteria by clicking here.
What returns can I expect on my investment?
Our investment criteria include the following: Cash-on-Cash (COC): At least 9% (Cash income in proportion to your cash invested. Distributed at periodic intervals. Measured annually.) a rate of return that determines the cash income on, or in proportion to, the cash invested, measured annually) Internal Rate of Return (IRR): 6-15% (Time-sensitive rate at which your...
How long will my investment remain illiquid?
Our exit strategy is generally in five to seven years, although this may vary depending on the specific business plan being executed and/or specific investment property. Occasionally, changes to this may be voted upon, such as whether to dispose (sell) or refinance the property should the market change significantly. The original business plan will be...
How do I know if I am an accredited investor?
The SEC (Securities and Exchange Commission) defines an Accredited Investor as a natural person who satisfies one or both of the following conditions: a. Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year b. Has a net...