A Multifamily Apartment Syndication allows investors to participate in otherwise unobtainable real estate investment opportunities by aggregating capital and experience by teaming up with other like-minded investors. This also allows you to diversify your capital into other real estate syndications or in other economic sectors.
Generally speaking, sophisticated investors must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.
To qualify as an accredited investor, at a minimum you must have earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year or has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). Reference the SEC guidelines at https://www.sec.gov/answers/rule506.htm for a more detailed description. To find out if you are qualified under this definition, contact us.
The minimum investment amount ranges from $25,000 to $100,000 for each syndication.
Yes. You can invest through an entity as long as the members meet the SEC investor requirements.
Yes, on a case by case basis as long as compliance with U.S. Securities Law is satisfied.
Quarterly distributions is the standard, however, each syndication is a businesses with varying distribution amounts based on the performance of the property. Each syndication has a specific strategy based on the specific value-add components of the asset.
Consult with your CPA for specifics on how this type of investment can impact you. There are typically significant tax advantages from investing in the real estate sector through depreciation. You will receive a K-1 from the partnership.
There are three main types of returns from real estate; cash flow, principal pay-down, and appreciation. These returns will vary from property to property, so, please, contact us for more specific information regarding total returns.
Yes, you can use your self-directed IRA (SDIRA) or you can convert an existing IRA or old 401(k) to a SDIRA to invest in our syndications. Contact your CPA to learn the details.
You can get started as an investor with VIP Partners by completing the Contact Us form and scheduling a call.
As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
Our goal is to finalize all K-1s by March 31st, however, we do rely on outside reporting and may require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns.
Typically, you can add funds to the initial investment, but it will depend on the phase of where the investment is.
Yes. The requirement for investing is that you have a US tax ID, be it for a business or your personal social security number.
A REIT is a piece of paper, very much similar to a stock. This is an investment in real-estate, backed by a hard asset. K-1’s are generated as opposed to 1099’s. Money cannot be pulled out of the real-estate investment at anytime whereas stocks are liquid investments.