Frequently Asked Questions
What is a real estate syndication?
A real estate syndication is an efficient way for investors to pool their money together to purchase larger real estate assets that they typically couldn’t manage or afford to purchase as an individual investor. Generally, by leveraging and raising additional funds from outside investors to purchase it, we force appreciation and then actively manage the asset.
Where do you invest?
We focus on class B & C apartment communities in strong insulated growth markets across the southern United States.
What is a General Partner & Limited Partner?
The General Partners are the individuals who are putting the multifamily syndication opportunity together. They then manage the asset, execute on the business plan and they then offer that investment opportunity to passive investors. They are interchangeably referred to as the syndicator, the sponsor, or the operator.
Limited Partners or passive investors have no active investor duties in a multifamily syndication. The distributions that an LP earns either monthly or quarterly, or any return for that matter is truly passive in nature. The GP or sponsor group is simply providing an opportunity to investors to invest alongside them, into a stable and appreciating asset with no active real estate investing role whatsoever.
What is an Accredited Investor?
An accredited investor is an individual who meets the guidelines and requirements of income and net worth based on securities and exchange commissions (SEC) regulations. This is so that the SEC can ensure proper protection for all investors.
To be an accredited investor, you must satisfy at least one of the following:
1. Have an annual income of $200,000, or $300,000 for joint income, for each of the last two years, with expectations of earning the same or higher income this year.
2. Have a net worth exceeding $1 million, not counting your primary home.
What are the assets we are investing in?
We solely invest in multifamily housing. We usually buy high-quality B and C class properties as value-adds. The money you put into the deal is used to finance one transaction, not a portfolio of properties.
Can I pull my money out of the investment at any time?
No. Each deal is different and your investment can be tied up either shorter- or longer-term. The initial liquidity event may take place at the refinancing of the property. This occurrence might happen as early as year three.
Can I invest with my IRA?
Yes, you can use your self-directed IRA or solo 401(k) to invest in our offerings. Contact your CPA to learn the details.
How will the investment affect my taxes?
For the majority of our investments you will receive a K-1 form at the end of each year for the investments that you are involved in. Please communicate with your CPA or Tax Attorney for specific information regarding your personal taxes.
What is a Value-Add Strategy?
A value add property is an investment property that offers investors the opportunity to increase an assets cash flow through renovations, rebranding, or operational efficiencies, i.e., a capable team managing the property.
What are my responsibilities as an investor?
As an investor with Quantum Capital, you will primarily be in a passive ownership position. Our firm handles the project management and asset performance. Our goal is to help investors create wealth through real estate passively.