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Why Multifamily?
passive income
Generate monthly income without ever having to lift a finger, allowing you to save, pay down debt, or re-invest your earnings so you can build wealth.
Tax Benefits
Multifamily gives you access to a long list of tax benefits including deductions and depreciation, among others so you keep more of what you earn.
stable asset class
Multifamily has much less volatility than traditional investments that are impacted by the stock market, which usually results in better return on investment.
rent trends
Homeownership has become less desirable for certain Millennial and Gen X populations, which means people are looking for nice places to rent.
Multifamily Learning Series
The Equity Multiplier
Published: April 16, 2021
There are several different return metrics to look at when analyzing a multifamily deal. ROI, IRR and Cash on Cash… just to name a few that we discussed in previous articles.
The Tax Weapon
Published: April 9, 2021
This little-known tax strategy allows real estate investors to dramatically reduce their taxable income… even after receiving cashflow distributions all year!
Economies of Scale
Published: April 2, 2021
Economies of scale is a phrase you may or may not have heard of. In the investing world it is very common, mainly because it allows us to get into larger projects and ultimately create higher returns.
What is Forced Appreciation?
Published: March 27, 2021
Appreciation is the increase in value of a property – whether through renovations, market cycle, or location. Most people automatically think of an area becoming “hot” as the reason for rising values. Think of market appreciation as passive… you don’t have to do anything to earn it.
Beware of Limiting Beliefs
Published: March 19, 2021
Have you ever had your heart set on accomplishing something, but convinced yourself not to go through with it? Have you ever started down a path of education, only to cut it short because you didn’t feel like you were making the progress you wanted to?
Clarifying the “CAPITAL STACK”
Published: March 12, 2021
If you’ve spent any time at all looking to multifamily investing, you’ve probably come across the concept of the capital stack. But just what is that exactly?
ROI vs IRR
Published: March 5, 2021
ROI (Return on Investment) is a simple calculation that all investors should have an understanding of. You look at the net profit after all expenses are paid, compared to your overall cost of investment. This can be calculated on a year to year basis.
Repairs & Maintenance Expense vs Capital Improvement Expense
Published: February 27, 2021
Knowing the difference is key.
Repairs & Maintenance is any expenditure needed to restore/maintain regular operating condition of a property. Things like fixing an existing appliance, ..
Underwriting Terms You Need To Know
Published: February 20, 2021
Firstly, in real estate (especially commercial), analyzing the financials of a deal is called ‘underwriting.’ If you’ve ever gone to buy your own personal residence I’m sure you’ve heard the phrase “your file is with the underwriter.” That’s because..
Syndication Basics
Published: February 12, 2021
General Partner (GP) vs a Limited Partner (LP)
Real estate syndication is a partnership between several investors. They combine their skills, resources and capital to purchase and manage a property they otherwise couldn’t afford individually.
Hedge Against Inflation
Published: February 5, 2021
“PUFF the magic draaaagon lived by the seaaaa”
Ok so hopefully you sang that first line by impulse and now your mood is heightened so your eyes won’t glaze over as you read this
Because that’s inevitably what happens to most people when you mention… inflation.
Having Control
Published: January 29, 2021
Back in 2010 I was searching for a way to take control of my financial future. I didn’t know what that looked like, I had no idea what direction I was headed, but I knew I was sick and tired of the uncertainty I felt day in and day out.
the demographic shift
Published: January 22, 2021
Ok so you may be thinking, what do demographics have to do with real estate? Well actually, a lot. Every generation has different personality characteristics..
4 Pillars of Real Estate
Published: January 15, 2021
Cash is king and this surely rings true for real estate. Most people get involved in rental real estate as a way to replace their earned wages with “passive” income.
we’ve got answers
Frequently Asked Questions
Who can invest in our deals?
Only accredited or sophisticated investors can take part in our opportunities. We have strict standards on who invests along with us, and the SEC does too. We need to get to know each other and ensure our values and goals align. Keep in mind that the financial income is not the only factor that determines whether you are eligible to invest with us. This is a long term partnership, like a marriage. Commercial multifamily real estate investing might not be the best route for every investor. That is why we need to have a conversation and cover a few basic points before we can move further.
What is an accredited investor?
- Your individual income has been $200,000 ($300,000 jointly with spouse) or more in the past two years and you have a reasonable expectation of reaching the same income level this year.
or - Your individual net worth (or joint net worth with spouse) exceeds $1,000,000 or have assets under management of $1,000,000 or above, excluding your primary residence.
or - You are a holder in good standing of the Series 7, Series 65, or Series 82 licenses professional certifications, designations or credentials
or - You are a “knowledgeable employee” of a fund with respect to private investments
What is a sophisticated investor?
Either alone or with a purchaser representative, you have sufficient knowledge and experience in financial and business matters that make you capable of evaluating the merits and risks of the prospective investment. The purchaser representative cannot be affiliated with the issuer and needs to be acknowledged by the purchaser in writing.
What is the minimum investment?
At Noirvest, our goal is to extend opportunities to those who may not have had access to these types of investment opportunities. Most offerings have a $50,000 – $100,000+ required minimum investment range, but we strive to offer opportunities below that range when possible. Minimums are also at the discretion of the managers on a case by case basis.
When will I get my original investment back and what is the holding period?
While most syndications target a holding period of 5-7 years and then a sale to cash out their investors, our primary goal is cash flow and creating generational wealth. We execute our value-add plan and then first look to refinance to recoup our investors most, if not all, of their principal investment in the first 3-5 years. We will always consider an opportunistic sale if one is presented.
When and how will I get paid?
Distributions are made monthly or 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.
Can I invest using a retirement account (IRA or solo 401K)?
Yes! You simply transfer funds into a Self Directed IRA and have the funds directed to the investment. We can help with this process and refer some custodians.
What are the tax benefits?
Multifamily apartment investments are very tax efficient. As a limited partner, you will benefit from your portion of the investment’s deductions for property taxes, loan interest and depreciation. When possible, we also like to use a cost segregation strategy to accelerate depreciation. It’s not unusual for a $100K investment to return actual cash in your pocket of $8K while experiencing a paper loss on your annual K-1. That loss can then be used to offset other income. Refinance events are non-taxable returns of capital that don’t fall under any tax obligation categories. At the time of a sale, profits are treated as long-term capital gains (more favorable tax treatment than short term gains).
*Keep in mind that this is not professional tax advice. We recommend consulting with a tax professional regarding specific tax benefits for your situation.
Still Have Questions?
Speak with one of our team members today!
