FAQ's

FREQUENTLY ASKED QUESTIONS

What is large multifamily real estate investing?

Large multifamily real estate investing involves purchasing properties with multiple residential units, often 100 units or more. They come in various forms such as high rise apartment buildings, midrise apartment buildings or low rise complexes, often referred to garden style apartments.  These properties generate income through tenant rents and can offer stability, consistent cash flow, and long-term appreciation.

What are the benefits of  investing in large multifamily properties?

The key benefits include:

  • Cash Flow: Monthly rental income can provide a steady source of passive income.
  • Scalability: Managing multiple units in one location is often more efficient than managing several single-family homes.
  • Tax Advantages: Investors can benefit from depreciation, mortgage interest deductions, and other tax strategies.
  • Appreciation Potential: Multifamily properties tend to appreciate over time, increasing their value.

How do you evaluate multifamily investment opportunities?

We analyze opportunities using criteria such as:

  • Location: Proximity to jobs, schools, and amenities.
  • Property Condition: Age, maintenance needs, and potential for value-add improvements.
  • Market Trends: Local rental demand, vacancy rates, and growth potential.
  • Financial Metrics: Key metrics like cap rate, cash-on-cash return, and internal rate of return (IRR).

What risks are involved in multifamily real estate investing?

While multifamily investing offers great benefits, risks include:

  • Market Fluctuations: Changes in the economy or local demand can impact income.
  • Vacancies: Periods without tenants reduce cash flow.
  • Unexpected Expenses: Maintenance, repairs, or property management fees can be unpredictable. We mitigate these risks through thorough research, conservative financial projections, and professional property management.

How much money do I need to start investing?

As a Limited Partner, you typically need a minimum investment of $100,000 to participate in our multifamily real estate projects. This amount not only grants you access to lucrative investment opportunities but also allows you to benefit from the collective purchasing power of a group of investors.

To put this into perspective, consider the alternative of purchasing an apartment complex on your own. Acquiring a small multifamily property can easily require several hundred thousand to millions of dollars, depending on the location and size. Along with the purchase price, you would also need to cover costs such as maintenance, management, and financing—all of which can be overwhelming for a single investor.

By investing as an LP, you share these costs with other investors while enjoying the benefits of professional management and a diversified portfolio. This approach minimizes risk and maximizes potential returns, making it a more accessible and strategic way to invest in multifamily real estate.

If you’re interested in learning more about how you can start your investment journey with us, please reach out!

What is a real estate syndication, and how does it work?

A syndication is a partnership where multiple investors pool their resources to acquire larger multifamily properties. It typically involves:

  • Sponsors/Operators: Manage the property and oversee the investment.
  • Passive Investors: Provide capital in exchange for a share of the profits. Syndications allow investors to benefit from multifamily real estate without directly managing the property.

How do I earn money from a multifamily investment?

Investors earn money through:

  • Cash Flow: A portion of rental income after expenses.
  • Appreciation: Increased property value over time.
  • Tax Benefits: Depreciation and other tax savings.
  • Profit Sharing: Distribution of proceeds when the property is sold.

How involved will I be as an investor?

It depends on the type of investment:

  • Active Investors: Participate in property management and decision-making.
  • Passive Investors: Contribute capital and receive regular updates but have no day-to-day responsibilities. We provide opportunities for passive investors to enjoy the benefits of multifamily investing without hands-on involvement.
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