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Residential District

FREQUENTLY ASKED
QUESTIONS

Please refer to our quick questions and answers. If you have further questions, don't hesitate to ask! We love educating new investors about real estate.

Q: What is Real Estate Syndication?
A: A real estate syndication is when a group of investors pools together their capital to jointly purchase a large real estate property. Syndications are composed of General Partners (managers) and Limited Partners (investors)

Q: Why multi-family apartments?
A: There is still an unfulfilled demand for living space. There are currently seventy-five million millennials and another seventy-five million baby boomers. That is our pool of renters. Because of this, multi-family is poised to perform very well due to this strong demand.

Q: What is a Limited Partner?
A:  Limited Partners invest into the syndication for ownership, returns, tax benefits

Q: What is a General Partner?
A: General Partners manage the investment to deliver upon the business plan of the syndication.

Q: What is an Accredited Investor?
A: To be an accredited investor, an individual must meet certain income and net worth guidelines. Either $200,000 a year in gross income of $300,000 if married, or have a net worth of $1 Million in net worth excluding the value or your primary residence.

Q: Can I still invest if I am not an Accredited Investor?
A: Maybe! But the best thing to do is schedule a call with us before we move forward as there are certain rules and limitations for non-accredited investors.

Q: What's the difference between REIT's and Syndication deals?
A: Investing in REIT's provides no control, no tax benefits, and certainly smaller cash distributions. It is also correlated with the greater market and swings up and down. Syndication deals are invested in hard assets, more favorable tax benefits, and we can maintain better control of the investment.

Q. What's the difference between buying an investment property or investing in a Multi-Family Syndication?
A: Tenants, toilets, trash, the inevitable costly repairs, vacancies and late nights. In a Syndication deal in Multi-Family as a Limited Partner (LP), you get to take advantage of all the benefits of investing in real estate, without all the headaches of managing tenants, toilets, and trash.

Q: How does this differ from the stock market?
A: The stock market is extremely volatile and offers little to no cash flow in terms of distributions. You also get no real tax benefits other than long term capital gains which can eat up profits when you sell stocks. Real Estate offers superior tax benefits, greater amounts of cash flow in the forms of rent, and isn't prone to market volatility as we have control over the asset. We can also increase it's value through forced appreciation from renovations.

Q: When can I expect returns on my investment?
A: Each Private Placement Memorandum (PPM) is different. However, you can expect cash distributions quarterly or monthly in some cases.

Q: Are there any risks in investing in Syndications?
A: There are always risks associated with investing. However, we do our best by ensuring the best possible due diligence which lowers the possibility of over-promising and under delivering. This is why we take a conservative approach and only invest in deals where we can see optimal risk adjusted returns for our investors. However, you should always do your own due diligence before investing into anything.

Q: Is there a limited investment amount?
A: Yes, each deal is unique and will require different amounts, but typically range between $25,000 - $50,000.

Q: Why should I invest with you?
A: We align our interests with you, our investors. Simply put, if our investors aren't making money, neither are we. This is a partnership, partnerships work better when everyone's interest is perfectly aligned, open and honest. If you are looking for guaranteed 1,000,000% returns, please look elsewhere and let us know what you find. If you are looking for partners you can trust, have integrity and are responsible stewards of investors money, then we are a fit for you.

Q: Do you guys invest in your own deals?
A: Of Course! We always have skin in the game in deals we believe in. This only reinforces our alignment with your interests.

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