San Antonio TX
Recent Posts
Frequently Asked Questions
How Does The Investment Process Work?
After you get on board, you will receive emails with new deal opportunities whenever those are available. When a deal is available for investment, the email will guide you through the investment process.
It is important to schedule a call with us, this gives us a chance to connect and discuss your financial goals. It also helps keep us in compliance with SEC regulations.
What Is The Minimum Investment Amount?
Minimum investments are typically $50,000.
How often Do Deals Come Up?
It is completely market-driven, but we try for at least one deal per quarter.
Can i Invest With My 401K Or IRA?
Yes, but it is important to let us know that you are planning on using your retirement account as soon as possible. Retirement accounts often take a while to send the funds and we don’t want you to miss the investment deadline.
What Are The Tax Implications Of A Cash Out Refinance?
There are no taxes due from the proceeds of a cash out refinance.
How Much Depreciation Can I Expect On My K1?
There are many factors that determine the annual tax outcome. We are not able to provide investors with individual estimates. We recommend consulting with a CPA to determine estimated depreciation.
What Is A Preferred Return?
A preferred return is a pre-determined profit distribution percentage from the operations, refinance, or sale of the property to the LPs (investors) before the GPs receive any distributions. The preferred return is in place until the LPs (investors) receive their initial investment amount back. After the initial investment is returned, the profits will be distributed based on the GP/LP split.
Will The Preferred Return Be Paid To Investors Regardless Of The Properties Income?
The preferred return is accrued and only paid from operating income. If the operating income is not sufficient to pay the preferred return, it will be accrued and paid first when income is available. There are no distributions to the GP team until the LPs (investors) are current on their preferred returns.
EXAMPLE: If the preferred return is 7% and year 1 the distribution to the LPs (investor) is 5%, the 2% that was not paid is carried over to year 2 and that preferred return amount will be 9%.
Can I Sell My Position In The Property If A Personal Emergency Comes Up?
We can connect you with another investor to sell your portion of the property to. We do not advise either party on price or terms.
How And When Is It Determined To Refinance Or Sell The Property?
We are continuously evaluating current market and property conditions to determine the best time to refinance or sell the property. The hold period is representative of what we expect. If market or property conditions change, we will make the appropriate decision in the best interests of the investors.
What Are The Tax Implications Of Preferred And Monthly Distributions?
These distributions are considered ordinary income. There are many individual factors that determine tax implications that a CPA will need to determine. The income generated by the property will be sheltered by depreciation losses passed through to the investors. In most cases, because of the deprecation losses, the investor will have net losses for tax purposes.
