What does the investment process look like?
Four steps. (1) Intro conversation — 30–45 minute call to walk through strategy, buy box, and the operating portfolio. No deal pitch, just a relationship conversation. (2) Join the investor list — you receive periodic market updates and portfolio commentary, no commitment. (3) Deal-specific offering — when a property fits the buy box, list members receive the full offering memorandum: property details, underwriting, projections, sponsor commitment, and subscription window. (4) Subscribe and fund — review with your advisors, sign subscription docs, wire funds. Each deal is its own LLC. Quarterly distributions, deal updates, and tax documents come directly to you.
What is the minimum investment?
$10,000 is the standard minimum, with a stated preference for investments of $25,000 or more. Specific minimums for any given deal are disclosed in that deal's offering documents and may vary based on the size of the raise.
How long is my capital locked up?
Real estate is illiquid. Plan on a 5–7 year hold per deal. There is no secondary market for your interest, and early redemption is generally not available. We treat this as a feature, not a bug — long holds compound.
How do distributions work?
Operating cash flow is distributed quarterly after debt service, expenses, and reserves. The 7.5% preferred return is paid first; profits above the pref are split 80/20 between investors and sponsor. Capital event proceeds (sale or refinance) are distributed per the same waterfall.
How am I taxed?
Each deal is structured as a pass-through LLC, so you pay tax personally rather than the LLC paying first.
What you'll receive each year: a Schedule K-1 (typically delivered in March), which reports your share of income, deductions, depreciation, and capital events. You hand the K-1 to your CPA along with your other tax documents — they incorporate it into your federal and state returns. There's no separate filing on your end.
Why this is favorable: real estate generates depreciation — a non-cash deduction that reduces your reported taxable income from the deal even when actual cash distributions are positive. In practice, this often means investors receive distribution checks during the hold while showing little or no taxable income from the LP for tax purposes. The full benefit varies by your tax situation (passive activity rules, basis, etc.).
At sale or refinance: capital gains and depreciation recapture are reported on the K-1 in the year of the event. Refinance proceeds are loan proceeds, not income, and are generally not taxable when received.
This isn't tax advice — your CPA needs to apply it to your specific situation. But the practical workflow is simple: receive K-1, hand to CPA, file as usual.
Do I need to be an accredited investor?
Not necessarily. Offerings are made under Reg D 506(b), which permits a limited number of sophisticated non-accredited investors with a pre-existing substantive relationship to the sponsor. Specific eligibility is confirmed during the subscription process.
What could go wrong?
Honest answer: a lot of things, in roughly this order of likelihood.
Operationally: tenants leave or stop paying, repairs come in higher than reserved, property tax assessments jump, insurance premiums climb. These are normal real estate operating risks — they reduce cash flow but rarely threaten principal. We reserve 4% for maintenance and 3% for vacancy on every deal precisely to absorb these.
Structurally: rates stay elevated longer than expected, making refinances harder; rent growth flattens; appreciation comes in below model; a regional downturn hits one of our markets. In any of these cases, distributions get reduced or paused, and the deal still works on cash flow but exit timing slides.
Financially (rare but real): a forced sale at the wrong moment in the cycle could result in partial principal loss. Total loss of principal is uncommon for properly insured, properly structured residential — it would typically require an uninsured catastrophic event or sponsor fraud.
Across all of these: we mitigate via conservative leverage (80% LTV max), fixed-rate financing only, full insurance coverage, 10%+ sponsor co-invest on every deal, and conservative underwriting assumptions. None of this eliminates risk — it just calibrates it honestly. If you want zero principal risk, this is the wrong asset class.
Why invest with you instead of buying my own rental property?
Honest answer: it depends on what you want. Both are legitimate paths.
Buying your own rental works better if: you want direct control over which property to buy, you have the time and inclination to manage tenants and contractors (or hire and oversee a PM yourself), you want all the cash flow and tax benefits, and you can put $50K-100K+ down on a single property. The upside is you keep 100% of the economics. The downside is you take 100% of the operational load — tenant calls, midnight repairs, eviction headaches, paperwork.
Investing through us works better if: you want exposure to cash-flowing residential without the operational overhead, you want a smaller minimum check ($10K vs. $50K-100K down for a property), you want diversification across multiple deals and markets over time, you want professional underwriting and ongoing reporting, and you want the tax benefits (depreciation passes through K-1) without the active participation.
The real tradeoff is control vs. leverage of someone else's time. Direct ownership gives you control. Investing with us gives you leverage on our underwriting, deal flow, and operations. We're not necessarily a better deal in absolute terms — but for most professionals with day jobs, the after-tax, after-time return on a sponsored deal usually beats trying to do it yourself. We'd rather you do the math honestly and pick what fits your life.
Who manages the properties day-to-day?
We work with vetted local property management firms in each market — typically firms we have personal operating experience with. Sponsor oversight is hands-on: weekly check-ins, monthly financials, quarterly investor reporting.
How do I track my investment?
You receive a personalized shared folder with all your deal documents, signed agreements, and tax forms. Quarterly written updates cover deal-level performance and distributions. An annual investor letter recaps the year. Direct access to the principal — questions get answered the same week.
