Frequently Asked Questions
What are the requirements?
You must qualify as an “accredited” or a “non-accredited” investor. These designations are to ensure that investors possess a certain level of financial and investing competence.
NON-ACCREDITED
In this context, a “non-accredited” or sophisticated person means the person, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
ACCREDITED
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. Has 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. Has a net worth exceeding $1 million, not counting your primary home.
NON-ACCREDITED
In this context, a “non-accredited” or sophisticated person means the person, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
ACCREDITED
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. Has 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. Has a net worth exceeding $1 million, not counting your primary home.
What is the minimum investment?
$50,000 is the minimum to invest in a project depending on the investment property. Learn how to invest using your current IRA/401K money without penalty from a third-party self-directed custodian company. Please contact Ortiz Equity Group for more details.
Can I invest through my IRA, LLC, LP, or Trust?
Yes. Both American & Canadian 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 Ortiz Equity Group if you have questions about how this works or need help selecting a custodian.
How long do I commit my money to this investment?
Investors can typically expect to commit their capital to an 18 month to 5 year hold period before we employ an exit strategy, such as a refinance or sale. This time period varies based on the specific business plan being executed for each property. Economic conditions may alter the strategy. Investors will receive projected timelines upon acquisition of the property and throughout the life of the investment. We the sponsors will always attempt to remain consistent with the initial projection and will execute the strategy that results in the greatest returns for all investors.
What kind of returns can I expect?
Every multi-family property investment is different and there is never a guarantee on an amount of return on investment. However, we typically strive to achieve a double-digit annual return with no guarantees over the life of the investment. This comes from cash-flow, forced appreciation from adding value, and the profits from the disposition of the property. In addition, we target a 12%-15% IRR (Internal Rate of Return) over the life of the investment. We invest our own capital into these properties and seek every opportunity to maximize investor returns. We discuss the business plan, projected returns, and equity structure with investors for each investment property.
Can I cash out of my investment at any time?
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. Ortiz Equity Group makes no guarantees of investor returns.
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