Investor Q&A

Most of our investors typically invest above $100,000, but we have a minimum investment of $50,000.

We primarily work with accredited investors: typically professionals with annual income over $200,000 or net worth exceeding $1 million. Our mission is to provide institutional-grade investments to busy professionals who are ready to take control of their financial future. We do, however, accept non-accredited investors on certain opportunities during a window in our raise timeline.

Absolutely, and many of our investors do. The instrument is a self-directed IRA. If you have an old IRA, or a 401(k) from a previous employer you can roll over, you choose a custodian that permits alternative-asset investing: multifamily real estate, syndications, private deals. The transfer itself is tax-free as long as the money stays inside the retirement wrapper, and distributions from the investment then accumulate inside the account. The majority of our investors use cash, but a growing number use a self-directed IRA. We will walk you through the process step by step and recommend the right custodian for your situation.

Sometimes. There is real precedent for investors pooling capital: two people who each wanted in but could not write the full amount individually going in together on one position. It has to be structured properly, so talk to us before you plan around it rather than after.

The other way round. Limited partners receive their preferred return first. At exit, LPs are paid until they meet their target return, and only then does the operating sponsorship team get paid. That ordering is deliberate: for us to make a dollar, we have to deliver what we promised you first.

Distributions come out of the property’s cash flow, so the first one typically lands after the close of the first full quarter under our management. From there they run consistently, quarter after quarter, through the life of the deal.

Our value-add strategy involves acquiring value-add multifamily properties, implementing strategic improvements, and optimizing operational efficiencies to offer quarterly cash-flow distributions to our investors. The gain at sale comes from the income we have added, not from hoping the market moves for us.

Most of our investments have a targeted hold period of 3–7 years, allowing for property value appreciation, comprehensive value-add strategies, and optimal market timing for disposition.

Monthly financial reports, detailed performance updates, transparent communication, and access to our investor portal, where you’ll also find your annual K-1 tax documents.

A professional third-party management company, chosen for a track record in that specific submarket rather than one learning the market on your money. We stay hands-on above them, with regular reporting, budget review, and site visits. Where we own more than one community in the same area, staffing is shared across them, which lowers operating costs on both.

Our general partnership is invested directly in every deal we bring you, and our raises fill from the community first. If a gap ever did open up, GP capital and the network around us would close it. An acquisition never depends on the last dollar arriving from a stranger.

Each year the partnership issues you a Schedule K-1. Because the building is depreciated, and that depreciation is accelerated by a cost-segregation study, the K-1 usually shows a paper loss in the early years even while you are receiving cash distributions. You hand the K-1 to your CPA, who applies the loss according to your own tax situation. On a value-add multifamily deal a first-year loss somewhere in the range of 25–35% of the amount invested is typical. Always run it past your own CPA first.

Typically around 25%, give or take, so roughly $25,000 on a $100,000 investment, allocated to you per the operating agreement. On some assets the study comes back stronger and the first-year figure runs closer to $35,000. It moves with the property, the purchase-price allocation, and the depreciation rules in force that year.

The owner of the property (the partnership) initiates it, and a good tax professional should be recommending it. Engineering firms specialize in these studies, and for property you own directly your CPA can usually refer you to one.

Real Estate Professional Status is hard for clinicians and first responders to reach, and not mainly because of the 750 hours. It is because real estate has to exceed the hours you spend in every other income source, and most professionals earn far more from their primary career. Two routes people actually use: a spouse qualifying for REPS, or a short-term rental, which requires material participation but far fewer hours (the average stay has to be seven days or less, with at least two rentals showing income). For a non-professional, long-term rental losses are capped at $25,000 a year per property. One warning: if a tax preparer ever offers to “take REP status for you,” treat that as a red flag.

If you have something to offset passive losses against (a short-term rental, or a spouse with REPS), the cost-segregation study is the biggest single lever. Without that offset, a non-professional with a long-term rental is capped at $25,000 per property, so a 1031 exchange usually becomes the bigger move, because it defers the whole capital gain rather than chipping at it.

Yes, and none of them require hours: REITs, Qualified Opportunity Funds (hold ten years and pay no capital gains on the sale), and syndications. In a syndication, if a cost-segregation study is done at the entity level the losses pass through to you. As a passive investor those losses accumulate and carry forward, typically reducing the taxable income from the investment to zero without a negative hit elsewhere.

Yes, by self-directing it. Instead of holding stocks, you self-direct the plan, make the purchase, sell later, and roll the proceeds back into the plan, kept at arm’s length throughout. The money keeps compounding inside the plan the whole time.

Not entirely. Depreciation recapture is normally taxed at your marginal rate. A step-up in basis at death converts it to the lower capital-gains treatment, and heirs can then use a 1031 exchange to defer further. It lowers the tax substantially. It does not erase it.

Backdoor Roth conversions reported incorrectly, which are costly and time-consuming to unwind. The fix is working with a well-seasoned professional. The other one is simply waiting too long to start; almost everyone says afterwards that they wish they had begun sooner.

It depends on the situation, but $20,000 to $40,000 a year from the low-hanging fruit alone is very typical, before any investing at all. Some save considerably more. Compounded across a working life, the difference is life-changing.

Get with a proactive tax-planning professional you trust. Reactive filing only tells you what you already owe. The investment vehicle matters far less than having a seasoned planner on your side. Planning is really where it is at.

It is not the number of deductions, it is the percentage of each category against your gross revenue. The IRS keeps a database of normal expense percentages by business type. Claiming 30% rent when 10% is typical, or 40% marketing when 5% is typical, is a major flag, and that is how fact-based, non-random audits get selected.

It makes a real difference. Above roughly $80,000 of net income, an S-corp election starts saving meaningfully, easily $5,000 to $6,000 or more a year for a typical practice, because distribution income is not subject to self-employment tax. One caveat: some states penalize S-corps, so check yours before you elect.

It is about the type of event, not the room. For a large gathering, pull comparables from event centers or hotel ballrooms; for a smaller meeting, use hotel meeting rooms or coworking spaces. Deductions commonly run $600 to $1,000 or more per rental, totaling roughly $11,000 to $14,000 across a year.

The principal portion of the payment is not deductible. You write the vehicle off either by actual expenses (gas, repairs, interest, depreciation) at your business-use percentage, or by the standard mileage rate for that year. To take 100% of the purchase price in year one, the vehicle has to be over 6,000 pounds.

Every time. Before we commit we walk the asset unit by unit, opening every door and closet, turning on faucets and looking at electrical panels. We walk the roofs with our general contractors and inspect the plumbing. Then we run a full financial audit of the lease files and historical operations. A spreadsheet is only as good as the building underneath it.

The same reason we plan to sell at the end of a business plan. Buying an apartment building is buying a business, and people sell when their plan is complete and they are moving on to a bigger one. That is how the industry functions, and it is why a good asset comes to market at all.

No. Renovations are funded out of the raise. Every line item is sourced and estimated before we close, and we carry a 10–20% contingency on top for the unforeseen, plus an operating reserve that sits in the bank doing nothing unless it is genuinely needed. We would far rather hold a healthy budget we do not spend, and return the capital, than be caught short.

Roughly twelve months end to end on a typical asset, sequenced in phases. Exterior first (fencing, paint, curb appeal), so existing residents watch the property improve before anyone has a rent conversation with them. Interior work follows. We are not just here to earn a return; residents should feel they are getting value for any increase.

Gradually, two ways. Units get renovated as leases end and residents move on, then re-leased at market. Where turnover is slower than planned, we offer existing residents the chance to move into an already-renovated unit and renovate the one they leave behind. Due diligence usually tells us exactly what they want (in-unit washer/dryer, new countertops, new cabinetry), so the offer lands. We renovate a handful of units at a time so occupancy never takes a hit, and a resident who prefers their classic unit simply keeps it.

More to leverage. Multiple tenants, so one vacancy is not a 100% loss. Economies of scale on management, maintenance and insurance. Easier financing. And more built-in equity, because the value is set by the income the building produces rather than by what the house next door happened to sell for. Several single-family homes can get close, but multifamily gets there with less vacancy risk and far less hassle.

We benchmark against properties in the condition we plan to deliver, matching vintage, renovation level and submarket, then measure the gap between those rents and the ones in place today. That gap is the opportunity. We then underwrite a premium deliberately below it, so the plan still works if we only capture part of it.

Look at any major U.S. metro over a five-year window: it is rare to look back and see rent decline. Rent can freeze for a stretch, but on a five-year basis it is almost always up. More to the point, we do not underwrite to market forecasts. We underwrite below them, and we force appreciation by improving the asset and by charging for standard services a previous owner never billed for.

Workforce housing has historically held up through downturns. People need somewhere to live, and when ownership gets harder, apartment demand goes up rather than down. In 2008, while single-family values were falling, apartment rent growth was strong. After the initial shock of COVID in 2020, the months that followed produced some of the highest rent growth of the decade. We also underwrite conservatively enough that the plan still works when the numbers come in below target.

Yes. Every deal is modeled at worst case, target and best case, with the sensitivity that matters most (cap-rate expansion at exit) run explicitly rather than assumed away. We underwrite entry at a conservative cap rate instead of banking on compression, so the downside case still sells at a profit. If a deal only works in the best case, it is not a deal.

We’re professionals who understand your journey. We are on a mission to spread the word about multifamily investing so that all of us can benefit from this opportunity, and we invest our own capital in every asset, alongside yours.