INVEST WITH US
WHY US?
We are experts in the Bay Area and have an established network of Brokers who send us off-market opportunities.
We offer competitive risk-adjusted returns for both the short-term and long-term horizons.
Reach out to us to learn more about our Investment opportunities.
Investing with us for the longer term horizon( 5-10 years) offers very attractive tax advantages.
We are a small, nimble team and we place our investors' interests at the center of everything we do. We are transparent with you on how our process works and how we underwrite deals.
We are not an opaque corporation. We want you to feel fully comfortable with what is going on and understand it.
We have a deep understanding of our markets and are very hands-on and have boots on the ground.
We use conservative assumptions and are not using floating rate debt, unlike many syndicators who recently got burned because of that and lost their investors' capital.
Our #1 Goal is our investors' capital preservation.
WHY NOW?
Historical data indicates that a Once-in-a-decade opportunity to buy great deals in Multifamily Real Estate is upon us. This is due to several factors including:
- The inability of some property owners with floating debt to absorb the higher interest rates as their refinance comes due.
- Cap rates increasing and therefore property values decreasing.
- At least one interest rate cut by the FED in 2024 if not more.
- Rents have softened a lot and will likely start rising again in the coming years.
After the GFC in 2008, the investors who bought properties in those first years that followed purchased amazing deals at an extremely low-cost basis.
Today we are entering an environment where multifamily properties can be purchased at a significant discount compared to the peak in 2022.
Don't stay on the sidelines! Let's Partner to capitalize on those opportunities.
TARGET RETURNS
Our target returns (to investors) on our 3 to 10-year hold periods are:
- 1.5X-2.2X Net Equity Multiple
- 12-20% Net IRR
- 6% average cash on cash following the value-add period.
Those are averages and the returns will vary deal by deal.
Our target returns (to investors) for our short-term flips (less than 24 months) are:
- 1.3X-1.5X Net Equity Multiple
STOCK MARKET OR REAL ESTATE SYNDICATIONS?
What is a real estate syndication?
A real estate syndication is a collaborative investment model where multiple investors pool funds to collectively acquire properties. It's structured with a general partner overseeing the investment and passive investors contributing capital. This approach allows investors to access larger deals, diversify their portfolios, and potentially achieve higher returns through shared resources and expertise.
What are the benefits compared to the stock market?
Investing in multifamily syndication presents an attractive proposition for investors seeking to diversify their portfolios and achieve stable, long-term returns.
Unlike the stock market, where investments can be subject to unpredictable fluctuations, multifamily syndication offers the advantage of investing in tangible assets like apartment complexes. These properties not only provide a consistent source of rental income but also tend to appreciate in value over time, offering investors a hedge against inflation.
Furthermore, multifamily syndication allows investors to benefit from tax advantages such as depreciation deductions, which can significantly reduce taxable income and enhance overall returns. By spreading risk across multiple units within a larger property, investors can also mitigate the impact of vacancies or market downturns.
Additionally, syndication provides investors with the opportunity to leverage the expertise of seasoned professionals in property management and asset optimization, further enhancing the potential for financial success.
With its combination of steady cash flow, tax benefits, and professional management, multifamily syndication stands out as a compelling alternative for investors seeking stability and growth in their investment portfolios.
While the stock market can offer significant opportunities for wealth accumulation, it also carries inherent risks that investors should consider.
One of the primary drawbacks is the volatility of stock prices, which can fluctuate dramatically in response to economic conditions, company performance, and geopolitical events. This volatility can lead to sudden and substantial losses, particularly for investors who lack the time or expertise to actively manage their portfolios. Additionally, investing solely in the stock market exposes investors to the risk of market downturns, which can erode portfolio value and take years to recover from.
Furthermore, stock market investments often lack the tangible assets and steady income streams offered by alternative investments like real estate. Without these stabilizing factors, investors may find it challenging to weather market fluctuations and achieve their long-term financial goals. Lastly, the stock market can be influenced by factors beyond an investor's control, such as regulatory changes, interest rate movements, and technological advancements, adding another layer of uncertainty to investment decisions.
Overall, while the stock market can be a rewarding avenue for wealth creation, it's essential for investors to weigh these potential downsides and consider diversifying their portfolios to mitigate risk.
What are the Tax advantages of a syndication?
Investing in multifamily syndication offers numerous tax advantages, particularly leveraging cost segregation and accelerated depreciation. Through cost segregation, investors can categorize assets within the property for faster depreciation, resulting in increased tax deductions. This allows for a more rapid recovery of the investment, minimizing taxable income in the short term. Accelerated depreciation further enhances these benefits by front-loading depreciation deductions, enabling investors to reduce their tax burden significantly in the early years of ownership. These tax advantages can enhance cash flow and overall returns on investment, making multifamily syndication an attractive option for those seeking tax-efficient investment opportunities while building wealth through real estate.
Talk to your CPA to understand in more detail how it can benefit your investment! But to make it simple: you will likely not pay taxes (or very little) on the cash-flow you receive from your investment in the syndication.