FAQ
DR Capital does NOT hold your investment funds. In fact, if you invest in a syndication during a capital raise event, those funds are never sent to us. Your funds are directly deposited by YOU via WIRE into the Syndicator's account and any financial communications are conducted directly with the Syndicator.
Real estate syndications are group investments. As a limited partner and passive investor in a real estate syndication, you invest your money alongside dozens, and sometimes hundreds of other investors, and together, invest in a commercial real estate asset like an apartment building.
As a passive investor, you have no active responsibilities in the deal. The DR Capital team manages the asset and its performance on behalf of you and other limited partners invested in the deal.
The projected returns will vary from deal to deal and like all investments, never carry guaranteed outcomes.
That being said, we typically pursue deals that provide a 7-8% annual return, along with a 16-18% IRR (internal rate of return).
The minimum investment is $50,000. We are in a unique position to lower the investment threshold on our offerings from the typical $75,000 - $100,000 minimum. Bring that opportunity to our investor group.
You do not need to be an accredited investor to invest alongside DR Capital. However, certain deals will be open to accredited investors only.
To be considered an accredited investor, you must meet one of two criteria. Either you have $1 million in net worth, (not counting your primary home) or you make $200,000 per year (or $300,000 if you’re married), have done so for the last two years, and expect to maintain that level of income through the current year.
The average projected hold time for our investments is 3 – 5 years.
At DR Capital, we focus on Value Add Class B and C multifamily apartment communities with 100 units or more, and present compelling value-add opportunities, in growing markets throughout the Southeast and Midwest.
DR Capital focuses primarily on growing markets. However, we do not turn down great opportunities in other markets.
When evaluating any market, we look for strong job growth, population growth, and job diversity, among other factors.
At DR Capital, capital preservation is our No. 1 priority. Above all else, we do everything in our power to protect your hard-earned money.
While there are no guarantees with any investment, we ensure that every deal has plenty of reserves, ample buffer, and multiple exit strategies in order to best protect and grow your capital.
Although multi-family properties are often considered stable and safe among various investment asset classes, there is always risk to any investment. In order to manage risk, we leverage established relationships with local brokers to obtain “off-market” and “below-market” deals. We partner with local, experienced property management companies that know the neighborhood markets we invest in, so the property is operated as efficiently as possible by optimizing income and reducing expenses. There are no guarantees in investing. We the sponsors invest our own personal capital into the deals so we have aligned interests and goals with the investors in the group.
In order to get the most accurate tax information for your unique situation, we highly recommend you consult your own CPA. That being said, as an investor in a real estate syndication, you get the pass-through tax benefits of owning the real estate itself. This includes accelerated depreciation and cost segregation, which can help to lower the taxable passive income you receive.
Each year, you’ll receive a Schedule K-1 reporting your income and losses for the investment.
Further, if you’re a real estate professional, you may be able to apply these paper losses to your ordinary income as well. Again, consult your CPA for specifics.
To get started, join the DR Capital. We’ll take some time to get to know you and your investing goals, and then we’ll share upcoming investment opportunities with you. The DR Capital is free to join, and there are no commitments to invest.
Can I invest through my IRA, LLC, LP, or Trust?
Yes. Investors are able to invest through their traditional self-directed IRAs. Investors are also able to invest through their LLC, LP, or Trust. Please contact DR Capital if you have questions about how this works or need help selecting a custodian.
An investor can expect to receive monthly distributions depending on the specific business plan for each investment property. We may also distribute additional capital to investors from time to time. This depends on the performance of the properties and when properties are sold or refinanced.
No. Commercial real estate investments are longer-term in nature than traditional liquid stocks and bonds. Investors would receive a projected hold period timeline from the beginning of the investment and consistently throughout the life of the project. Cash distributions are done through cash flow from the property during the holding period of the asset. Many times investors may not receive their full principal investment back until the property sells and investors cash out from the profits upon disposition. Rise48 Equity makes no guarantees of investor returns.
As a partner in the LLC that purchases the properties, you will receive a K-1 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. Many of our investments feature strong depreciation benefits which will be clearly stated in the K-1.
Yes! Some of our offerings are structured to allow for 1031 exchange funds. Please contact us if you’re in need of a 1031 exchange investment.
Yes! If you have an IRA it is possible to roll it over into a self-directed IRA or solo 401k custodian, which allows you to invest your tax-advantaged retirement dollars into alternative investments that a standard IRA will not.
You can learn more about our future investment opportunities by signing up for the newsletter. You will then be able to schedule a call with Rob or Deepak at your convenience to discuss how to move forward as an investor.