Frequently Asked Questions
What is an accredited investor?
An accredited investor, as defined by the Securities and Exchange Commission (SEC), must satisfy at least one of the following:
Have an annual income of $200,000, or $300,000 for joint income, for each of the last two years, with expectations of earning the same or higher income this year;
Have a net worth exceeding $1 million, not counting your primary home
A certification is not required to meet the definition of an accredited investor.
What is syndication?
In its simplest form, syndication is the pooling of investor money where the investor is typically a passive, limited partner (LP). The other partner to the deal is the general partner, or active partner that puts the deal together, manages the business plan to provide a return for the benefit of all investors. You will hear General Partner (GP), Syndicate and Sponsor often used interchangeably.
How much money do I need to invest?
Most investments start at $50,000, although investment amounts can range from $25,000- $100,000. Many people invest with a Self Directed IRA or a solo 401k plan.
What are the expected returns in a syndication investment, and over what period of time?
To give you an idea of the returns, our team only targets deals that have at least:
8% cash-on-cash annual return, typically paid monthly
16% - 22% IRR (internal rate of return)
with a 2x equity multiple; effectively doubling your money over a 5-year hold period.
Generally, you can anticipate your capital being tied up for about 5 years until the asset is sold.