Multifamily real estate is the largest of the "core four" commercial asset classes and is often considered the most straightforward. It involves investing in properties with multiple residential units, such as apartment buildings or duplexes, to generate rental income. More individual investors are turning to multifamily properties to diversify their portfolios and generate passive rental income. Investing in multifamily real estate offers several advantages, including:

✅ Portfolio Diversification – A strong alternative to traditional stock/bond allocations (e.g., a 60/40 portfolio).

✅ Scalability – The ability to grow your real estate holdings more efficiently compared to single-family investments.

✅ Tax Benefits – Potential eligibility for tax advantages such as depreciation and cost segregation.

An accredited investor, in the context of a natural person, includes anyone who:
• 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).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

• any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, OR

• any entity in which all of the equity owners are accredited investors.

In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

Distributions are planned quarterly.

A Sophisticated Investor doesn’t meet the requirements of an Accredited Investor but they have investor experience. This could mean the person believes they have sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

Investor funds are used for the total acquisition cost of the property. This includes but is not limited to the down payment for the actual purchase of the property, acquisition fees, legal and transaction costs, capital improvements, and reserves.

Absolutely! Investors are allowed to visit the property before investing and during the life of the project. If you provide sufficient notice, we will personally be there to show you around and answer any questions.

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. Your specific situation may vary, important to discuss with a tax professional.

Vet a GP like you’re hiring a long-term operator, not buying a product: confirm relevant track record, verify underwriting discipline, understand debt and risk controls, review reporting/communication standards, and check alignment through fees, co-investment, and decision rights.

IRR: A time-weighted return that reflects when cash flows occur—earlier returns increase IRR.

Equity multiple: Total dollars returned ÷ dollars invested (e.g., 1.8x = $1.80 back per $1.00), regardless of timing. EXAMPLE: Investment of $50,000 with a 1.8x multiple would return $90,000 over the hold period.

Core+ is a generally stable, well-located property with strong fundamentals where the business plan focuses on modest, lower-disruption improvements (operations, revenue management, amenities, expense control) rather than heavy renovations or major repositioning.

Light value-add is a business plan that improves cash flow through targeted upgrades and operational improvements—typically during normal unit turns—without major construction risk (no gut rehabs, no large-scale repositioning, and no dependency on aggressive rent growth).

Co-GP operational oversight means the sponsor is actively involved after closing through governance and performance management—monitoring KPIs, reviewing financial variance, holding property management accountable, and communicating with investors—rather than being “hands-off” once the deal closes.