How will I be updated about my investment?

Investors are provided access to updated information online through our investor portal. Each quarter, a detailed investor report for each investment will be emailed. The quarterly report includes information about the management, operations, and performance of the asset.

How often are distributions made?

Investors can expect to receive quarterly distributions. Other distributions may be made to investors at the end of the year based upon the performance of the properties and when there is a sale or refinance.

What is a K-1?

A K-1 is similar to a 1099 and is an accounting of the yearly tax income. An investor will receive a K-1 for each investment made. K-1 forms are often used in partnerships and real estate ownership.

How is this different from a REIT?

A Real Estate Investment Trust (REIT) is essentially real estate flavored stock. It is bought and sold like other stock and is tied to the performance of the stock market. Master Multifamily clients are direct fractional investors and are protected from that volatility.

Direct fractional ownership also provides investors access to tax advantages that aren’t available to REIT Investors.

Most importantly, Master Multifamily investors have the ability to choose which projects to invest in whereas REIT investors rarely have a choice in the projects the REIT decides to purchase.

What are the tax advantages?

The benefits vary according to your own tax situation, but may include:

  • Cash flows may be received without a current tax impact (tax depreciation deductions defer taxation, and depreciation rules are favorable to the investor)
  • Distributions from refinancing events provide cash flows with no current tax obligation
  • Section 1031 exchanges from other real estate investments into a multifamily housing can defer capital gains taxes and lever up your potential cash flows and returns
  • When you sell your real estate investments, a significant portion of the gain may be taxed at favorable capital gains tax rates
  • Real estate is an ideal estate planning vehicle. Your heirs’ future tax obligations are reduced due to the step up of basis to fair value at the date of death
  • If you qualify as a real estate professional, paper tax losses can reduce current taxation on ordinary income

For more details on these potential benefits see The Tax Advantages of Residential Real Estate Investing. (Remember to consult with your own tax advisor before investing since the articles on this web site do not constitute tax planning advice.)

Where do you invest?

We invest in stable markets with historical population, income, and job growth that are above average. When looking at employment, we target markets that have multiple industries that demonstrate a diverse economy. Additionally, we only invest in markets having agreeable landlord/tenant laws and a friendly business environment. Being long-term holders of commercial multifamily apartments, we look for the ability to grow within a market over a long period of time.

Who can invest?

To invest you must be an Accredited Investor that has gone through our approval process.

Accredited Investors are individual investors who either have a net worth of at least $1,000,000 (not including the value of one’s primary residence) or have earned income over each of the last two years of at least $200,000 and have the expectation to make the same amount in the current calendar year. You may also qualify by combining your income with your spouse and the new threshold for qualification would be $300,000.

Investing in commercial multifamily apartments is not suitable for every investor. Before investing, we’ll make sure it will be a good match for one another.