Frequently Asked Questions

Don't you have to be super rich to invest in apartment buildings?

No! Thanks to the beauty of real estate syndications (the fancy term for multiple investors pooling their money to buy real estate), you can own a piece of this amazing asset class with a small minimum investment. No need for millionaire or billionaire status!

What is a syndication?

A syndication is the pooling of investor money where the investor is typically a limited partner and the general partner (Big Spring Capital) puts the deal together and manages the business plan to provide a return for the benefit of all investors.

How is the investment structured?

Each investment (property) will be held in its own limited liability company (LLC) of which you, as the investor, will own a percentage proportionate to your investment.

Is the money I invest safe? Is this a risky investment?

While there's some level of risk associated with any investment, real estate, and multifamily specifically, has one of the lowest risk profiles of any asset class. We make conservative assumptions when evaluating potential acquisitions, providing us and our investors with a margin of safety (which, according to Warren Buffett, are the three most important words in investing). Our primary objective in any acquisition is the preservation of investor capital.

What happens if there's a downturn in the economy?

Our best protection against an economic downturn is the ability to ride the downturn out, avoiding selling into a down market. We account for this in our conservative underwriting by ensuring that we can profitably hold the property longer than the planned investment period, potentially up to 10 years. Although certainly not ideal, it allows us to continue collecting cash flow while achieving our primary objective of preserving investor capital.

How much can I make if I invest?

Projected returns are specific to each property, but in general we target opportunities that will provide at least a 7% cash-on-cash return and at least a 12% average annual return over the life of the investment. Our projected returns always include all fees — no bait and switch here.

When and how will I get paid?

Distributions are typically made quarterly from excess operating cash flow and are automatically deposited into your bank accounts. Investors are notified of upcoming distributions and are able to track their distribution history through their investor portal.

Am I able to cash out of my investment at any time?

Generally speaking, no. By their nature, real estate investments are illiquid and have a longer-term hold period than that of liquid stocks or bonds. While we'll attempt to work with investors in extraordinary circumstances, investors should expect their investment to last the entirety of the hold period dictated by the business plan for the property.

Can I invest using my retirement accounts (401(k) / IRA)?

Absolutely! You can set up a self-directed IRAwith an IRA custodian that allows you to invest in real estate, including multifamily syndications. The process is easy and painless — reach out and we'll be glad to guide you through it.

Do you invest in your own deals?

Absolutely! We have “skin in the game” and invest our own money as a limited partner in each of our deals.