FAQs
How do I get started with Saorsa Capital Investments?
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What is Multifamily Investing?
A multifamily property is a residential building with more than one housing unit. Multifamily real estate can accommodate multiple tenants, each having their own rental unit with its own kitchen, living room, bedroom, and bathroom. A multifamily home is also known as a multi-dwelling unit (MDU) and these multiple separate units can also be held in one or several buildings in the same complex.
What is Syndication?
Syndication is the pooling of investor money where the investor is typically a limited partner and the general partner puts the deal together and manages the business plan to provide a return for the benefit of all investors.
What is an accredited investor?
The benchmark for being an accredited or sophisticated investor is set by the SEC. An accredited investor is someone who meets one of the three criteria: a) earned an income of $200,000 in the last two years and expect to make the same this year, b) earned an income of $300,000 filing jointly in the last two years, or c) have a net worth of $1,000,000, not including their primary residence. If someone does not meet the accredited investor criteria, they are considered non-accredited.
Sophisticated investors must “have enough knowledge and experience in business matters to evaluate the risks and merits of an investment.”
What does it mean to be a sophisticated investor?
A sophisticated investor is someone deemed to have sufficient investing experience and knowledge to weigh the risks and merits of an investment opportunity. If you do not qualify as an accredited investor, you can become sophisticated through building a relationship with Team Saorsa. To start the investment process with us, schedule a 20-minute free call or fill out our new investor questionnaire.
Do you accept non-accredited, sophisticated investors?
Yes, we accept sophisticated investors, but each deal is different. Some deals are reserved for accredited investors only. We will clearly communicate if a deal excludes sophisticated investors.
Can I invest with my self-directed IRA or other retirement accounts?
Yes, we can process investments through a variety of self-directed retirement accounts.
What is the minimum investment?
The minimum investment is $25,000.
What is a Preferred Return?
A preferred return is a hurdle that must be met before the General Partners receive their share of profits. For example, if a deal has a 6% preferred return hurdle, investors must receive a 6% return on their investment, before the General Partners receive any shares of profits.
How Often Do You Make Distributions?
Distributions are made quarterly from available operating cash flow and are automatically deposited into investors’ bank accounts. Investors are notified of upcoming distributions and are able to track their distribution history through their investor portal.
What if I need my money back?
These are illiquid assets, meaning the investors should plan on staying in the deal through the hold period. In the case that an investor faces an extraneous circumstance and needs to exit a deal, we will typically work with them to buy out their shares. This is on a case-by-case basis.
What are the risks?
Risks are outlined in the Private Placement Memorandum. Additionally, lenders will not partner with us unless we have a good business plan, conservative underwriting (banks will underwrite the deal as well), have adequate insurance, and have an inspection completed by outside experts.
Do You Invest Your Own Capital In The Deal?
Yes, and we're confident in them to the point we go out and raise additional funds through syndication to leverage the size of deals we can invest in.
Will I receive tax benefits?
Yes, the profits and losses will be passed through to investors. Commercial real estate can be depreciated at a faster pace than residential and this depreciation often creates a “paper loss” for investors. This “loss” can be used against other qualifying gains, but please consult with your CPA
What tax documents should I expect to receive?
You will receive a K-1 (issued from our CPA) at the end of each year. You will be able to access and download these from the investor portal.
What is the typical deal structure?
When we acquire a new property, we will create a new LLC with share classes for Limited Partners (investors) and General Partners (us).
We structure the deal with a split of equity, after a preferred return. Typically, the preferred return is 6-8%. After the preferred return is met, the equity split is 70-80% to investors and 20-30% to general partners. The specific split will be laid out in the deal.
Do you accept proposals for private lending?
Yes, please contact info@teamsaorsa.com to communicate your proposal and the related terms and condition.