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What is a "Private Placement"?
The sale of stocks, bonds, or securities directly to a private investor, rather than as part of a public offering.
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How does one invest in a private placement fund?
Simple, fill out the required documents either online, or print and scan, then wire a 20% deposit to hold your position, then (when the capital is called) wire the balance. Receive monthly or quarterly distributions during the hold period until the end when your principal and any accrued interest is paid back.
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Is the investment secured?
The investment is secured by cash flowing real estate. Even if the market values fluctuate, the intent is that the properties continue to pay out a dividend.
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Can I invest my 401k or IRA?
Yes! You will just need to contact a custodian for the appropriate handling of funds. We would be glad to refer one to you if you get in contact with us.
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What does 'preferred return' mean?
Preferred return is the first money paid after debt and expenses, before any profit split with the manager. This is the most secure equity position to be in because the likelihood of receiving monthly dividend payments is very high.
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What types of property does the fund invest in?
Multifamily apartment communities, typically more than 100 units per community.
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When do I get my principal back?
After the "Hold Period" the principle and any accrued interest is due.
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How does the internal return work?
Any profits above the preferred return such as appreciation and mortgage balance paydown, are split per the offering documents at the end of the holding period.
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Do I have to Participate in the management?
When you buy into the fund you are buying an equity interest in the company that owns the property. The benefit if this model is that you are entitled to the monies earned but do not have the liability of building ownership or hassles of building management.
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When do I have to pay for my subscription?
Your money is deposited in an escrow account within 24 -48 hours of your payment. The money is held in escrow until the first closing is date, at which point the remaining balance is due.
When you buy into the fund you are buying an equity interest in the company that owns the property. The benefit if this model is that you are entitled to the monies earned but do not have the liability of building ownership or hassles of building management.
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Is there a minimum number I have to purchase?
The minimum investment it $50,000 - anything above that amount is accepted.
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Can I buy in as a Business?
Yes. You can purchase as an individual, jointly, as a trust or as a business. The ownership will be in the name of the designated.