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Carolina Multifamily Meetup
This virtual meetup was started as a platform for out-of-state investors to connect with Carolina based investors and operators. The format is a short presentation followed by a zoom breakout rooms for networking.
Multifamily Live Meetup
This is an in-person meetup based in an easy to reach location in central New Jersey. While there are virtual meetups linked to this group as well, the focus of this meetup is in-person.
Subscribe to the youtube channel to find recordings of meetups, short educational clips and podcast interviews.
How is it that I can invest in Commercial Real Estate? I can own an apartment building?
Utilizing Real estate syndication investors pool their financial and intellectual resources to purchase a property that is much larger than they could possibly afford or manage on their own. You will own a percentage of the asset – an ownership slice of a large, income-producing apartment complex managed by professional operators and property managers. By investing in commercial multi-family apartment syndications, investors can participate in otherwise unattainable real estate investment opportunities.
What are real estate syndications?
Real estate syndications are group investment opportunities. As a limited partner passive investor in a real estate syndication, your money is invested alongside dozens (and sometimes hundreds) of other investors in a single commercial asset (such as an apartment building). As a passive investor, you won’t have any other active responsibilities in the deal. The Peak Investment team, along with other general partners in the deal, will manage the asset on your behalf.
What is a general partner? What is a limited partner?
A general partner (GP) is also known as the syndicator, operator or sponsor of the deal. They are responsible for overseeing and managing the project. The limited partner (LP), also known as the passive investor, provides equity to carry out the project.
What is the minimum investment?
The general partners create the minimum investment amount per deal with most starting at a 25-50k minimum and a $250k maximum. These are the minimum investment amounts for Limited Partner investors.
Do I need to be an accredited investor to participate or register?
No, you don’t need to be an accredited investor to register with the Peak Investor Club or to invest with us. However, certain deals will be open to accredited investors only.
To be considered as an accredited investor, you must meet one of the following two criteria:
- Have $1 million in net worth (not counting your primary home).
OR - Have either an annual income of $200,000 per year or an annual combined income of $300,000 (together with your spouse).
Additionally, you must have maintained this net worth or these annual income amounts for the past two years and intend to continue doing so over the coming year.
Can I invest through my entity LLC?
Yes. As long as you meet the SEC’s requirements, you can invest through an entity.
Can I invest with my IRA?
Yes you can invest through a self directed IRA. This will allow you to invest tax-advantaged retirement funds into real estate. You must have an entity that specializes in Self-Directed accounts that will manage the transaction, paperwork and financial reporting. This custodian will protect you from any violations and typically charge a fee.
How will this affect my personal taxes?
Consult with your CPA for specifics on how this type of investment can impact you based on your unique financial situation. That said, apartment syndication is generally very tax-efficient and benefits from the tax-advantaged nature of property taxes, loan interest, and depreciation. Methods such as cost segregation can be used to accelerate the depreciation of certain parts of the investment. Following the end of the calendar year, you will receive a K-1 from the partnership that can be supplied to your CPA.
What is a K-1?
Your investment is made into an LLC that acquires the property. Each investor within the LLC will receive a K-1. This is a tax form provided for investors with information on their share of a partnership’s taxable income. This is not subject to a federal or state income tax but used for an individual to report his/her share of the partnership’s income, deductions, gains and losses.
What is my money being used for?
Investor funds go towards the down payment for the loan, renovation and capex items, fees charged for putting the deal together and initial operating and reserve funds for the property.
How long do I have to keep my capital in the deal?
The average projected hold time for our investments is 5-7 years.
When are distributions made?
Quarterly distributions are the standard, however each syndication is its own separate business with a specific strategy and return profile based on the business plan for the asset. That being said, during certain market conditions, the temporary discontinuation of quarterly cash payments may occur in order to preserve cash and protect the asset/the investor’s capital. First and foremost in our minds is preservation of capital. Only once this requirement is satisfied do we look to generate returns on that capital.
What are the projected returns?
Our goal at Peak is to invest in properties that hit specific cash-on-cash annual and internal rate of return (IRR) benchmarks for the duration of the hold period. These are communicated at deal presentation and vary based on market conditions.
What is included in the property update?
Once you invest in a deal you will receive regular communication. At Peak, the Limited Partner will receive a monthly update on the status of the deal. Monthly updates will include vacancy rates, renovation plans, where the deal stands in the business plan, new leasing rates compared to projections, what capex has been started, any updates on the market etc.
Cut a new path…
As a member of the Peak Investor Club you will receive a monthly newsletter. The newsletter will include updates on the business, target markets, portfolio and educational and networking opportunities.
As a member of the Peak Investor Club you will receive a monthly newsletter. The newsletter will include updates on the business, target markets, portfolio and educational and networking opportunities.
Ready to join the club?