Investment structure
Returns, terms & alignment
Clear distribution mechanics, passive cash-flow participation, and accredited-investor-only access. Final terms for any offering are in the Private Placement Memorandum.
Structure summary
Cash flow
Returns (summary)
The following is a high-level summary. Waterfall mechanics, accrual, and catch-up, if any, are defined only in the operating agreement and PPM for each transaction.
- Distributable cash flow to investors from rental income and property operations when cash is available, as defined in each offering’s operating agreement and PPM
- 70% investors / 30% sponsor on residual distributable cash after investor distributions and return of capital, per the definitive documents
- Return of capital before profit splits on sale, as described in offering documents
- Quarterly distribution target when operations and cash flow support it
Waterfall
How cash flow is generally ordered
Conceptual order: operating expenses and debt service (if any), reserves per lender and business plan, passive income from distributable cash flow, then split of remaining cash after distributions and return of capital, subject to the definitive documents.
Operating & debt
Property-level obligations funded before investor distributions.
Passive income
Based on distributable cash flow (for example rental income), after required reserves, per the operating agreement and PPM.
Split & exit
Residual cash flow and sale proceeds per the operating agreement after distributions and return of capital.
Terms
Investment terms
- Minimum: $50,000 per deal (typical)
- Investors: Accredited investors only; Regulation D Rule 506(c)
- Hold period: 3-5 years (business plan dependent)
- Accreditation & verification: Rule 506(c) requires accredited purchasers and reasonable steps to verify status; syndicate size is deal-specific.
- Tax efficiency (general): Where appropriate we pursue cost segregation studies and support 1031 exchange planning at disposition. Eligibility and outcomes vary. This is not tax advice—consult your CPA and a qualified intermediary when relevant.
Fees & alignment
Fees (high level)
Fees vary by transaction. Illustrative categories include an acquisition fee and ongoing asset management. Sponsor co-investment of 5-10% of project equity is targeted for alignment. Confirm all economics in the PPM for a specific offering.
Acquisition
Market-competitive, tied to complexity and capital raise, as disclosed in each PPM.
Asset management
Ongoing sponsor oversight and reporting, stated as a percentage in offering materials.
Co-investment
Sponsor capital alongside investors on every deal to align incentives.
Illustrative fee math (not an offering)
Select a principal amount. Assumptions: 2% acquisition fee and 1% annual asset management for 5 years; illustrative 8% annual distributable cash flow to investors during the hold (simple, not compounded); at exit, illustrative 15% gain on equity at sale with 70% of that gain to investors (vs. sponsor), hypothetical for discussion only.
Timing
Distributions & reporting
Quarterly distribution target when cash supports it. Investors receive reporting aligned to the operating agreement, typically including NOI, occupancy, and capex narrative.
Tax
Tax considerations (general)
Investors often receive pass-through allocations and a Schedule K-1. Tax outcomes depend on your situation. This is not tax advice. Consult your CPA and attorney.
- Typical pass-through treatment; timing and character of income or loss vary by investor.
- K-1 delivery timelines follow partnership tax rules and preparer schedules.
- Discuss liquidity, basis, and state filing obligations with your advisors.
- We may pursue cost segregation on acquisitions when it fits the business plan, and we can discuss 1031 exchange paths at exit where applicable—not tax advice; confirm with your CPA and QI.
Risk
Risk reality
Real estate involves illiquidity, tenant risk, interest rate risk, and macroeconomic risk. No projection is guaranteed. See risk factors in offering documents and our legal disclosures.