At ASTUTEQUITY we specialize in investing in, managing and selling multifamily properties. We’re a multifamily syndication business, which means we pool money from investors to purchase an apartment complex. This generally results in great returns for our investors. 

As the syndicator (or “General Partner” or “Sponsor”) we find, analyze and close the deals. We work closely with a property management company to manage the apartment complex and improve it before we sell it for a profit that we’ll share with you.

Depending on the deal, as our limited partner (or “passive investor”) you may also earn a return on your investment through the rent payments.

In our experience, the returns have been much higher than other types of investments, and have had a more stable trajectory. There are also tax advantages to investing in multifamily.

Investing in a syndication means you’re able to buy a larger deal than you might be able to personally since funds are pooled from many investors.

One of the great things about investing passively is that you don’t have to worry about the day-to-day operations and the execution of the business plan. We handle all of that and just communicate with you to keep you informed about how things are going.

Excellent question. Doing your research and asking the right questions is key for finding the investment opportunity that’s best for you. As no two syndicators or deals are alike, we suggest asking questions like …

“Who’s the syndicator/sponsor and who are they working with?” 

We understand that you entrust your hard-earned money to the syndicator to create a return for you. That’s why you want to know as much as possible about them. You want to trust that they can make you money. Try to get to know them, their team and what they stand for.

To learn more about our team, visit our “About Us” page and get to know us. 

“When will I receive the money?”

Investment periods vary. They range from 1 or 2 years, up to 10+ years, with the average being 3-7 years. Every syndication business takes a slightly different approach, and a lot depends on the deal.

A common scenario is to have some modest cash flow starting from rents within the first couple years, maybe increasing gradually, and then the big payout at the end when the property is sold or refinanced.

It’s your money, and you have goals and needs that are specific to you, so find a deal that works for you.

For example, maybe you want to retire in 10 years and want to increase your investment as much as possible. Or maybe you know you’ll have something else you’ll want the money to be available for in a few years and a shorter-term deal would be a better fit. Find a deal with the investment period that’s in line with your financial goals.

“What’s the minimum return on investment (ROI) I’d accept?” 

Multifamily deals vary. That’s why you cannot assume that the ROI of one deal is the same as a previous deal. Always get the necessary information on the ROI and see if it’s what you realistically expect.

If you’re interested in investing with us, fill out this form and we’ll talk about your goals and work toward finding a deal that works for you.

Another good question. Of course, you’ll want to speak to your accountant to find out exactly which tax benefits you’re eligible for. But there is potential to save thousands of dollars. If you meet certain requirements you could benefit from:

• Depreciation benefits

• Using your self-directed IRA

• A 1031 Exchange

These are a few possible ways you can give yourself a tax break and save money. We recommend that you talk to a professional accountant to make sure you maximize your savings.

For most deals, you can start investing with $50,000 - $100,000. Some real estate investment platforms will accept smaller investment amounts, but most private real estate syndications begin at a minimum investment of $50,000.

If you decide to invest in a multifamily syndication, you will receive a steady, passive income. With the apartment units rented out, you’ll have a constant flow of cash coming in without the hassles of property ownership. And then, of course, you’ll generally get the most returns once the property is sold for a profit. 

Historically, multifamily investing also performs better during a recession. Sure, an economic downturn hits everyone, but even during a recession there will be tenants paying rent so that you continue to get a return on your investment. 

Certain types of deals require us to have a relationship with you prior to presenting any deals with you. The best place to start is by telling us more about yourself and your investment goals. Then, as we get to know each other better and deals come up that fit your criteria, we would love to work with you. 

Just click here and let us know about your interest and we’ll set up a no-obligation call to get to know each other.

Here’s how the SEC defines an accredited or sophisticated investor:

“An accredited investor, in the context of a natural person, includes anyone who:

earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, ORhas a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

There are other categories of accredited investors, including the following, which may be relevant to you:

any trust, with total assets in excess of $5 million, not formed specifically to purchase the subject securities, whose purchase is directed by a sophisticated person, or any entity in which all of the equity owners are accredited investors.

In this context, a sophisticated person means the person must have, 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.”

Learn More

No.

You can get started as an investor with Astute Equity Holdings by completing our online investor application.

We currently solely invest in multi-family apartment buildings, one of the most recession proof segments of the Real Estate Market, particularly with the United States population continuing to grow. Even with the continued advancements in online marketing (particularly Amazon) and “work from home” which threatens the retail and office markets, people will always need to live somewhere. Within this segment, we focus on B+ to C+ class multi-family properties and prefer B class in A markets and C+ class in B markets. We believe this positions us in the segment of the market that is shielded most from the ups and downs in the economic cycles. We will also review distressed A class deals in markets with 1MM+ populations.

In most investment opportunities you will be a limited liability owner of the property which comes with all the ownership benefits like depreciation and cash flow. The property is owned by a “Astute Equity Holdings” entity for which that property is the only asset which reduces liability. You in turn will be a direct shareholder in this business entity so in essence you are part owner of the company that owns the property. This allows for a direct flow-through of cash flow, depreciation, and upon sale of the asset allows you to realize long term capital gains… PLUS, you literally get to tell your friends you “own” an apartment complex, because you do.

This is an exciting point. Over a 5-year period it is our goal to have our properties not be more than 50-60% leveraged. While we start out with 75%-80% leverage based on purchase price, we decrease that ratio rapidly by actively paying down the loan and by forcing appreciation of the property through value add improvements, superior management, and rent increases, leading to a 5-year loan to value ratio of no more than 60%. This conservative approach provides additional buffer from the ups and downs of the real estate market.

Yes. Investing in multifamily in a structure like ours is perfect for retirement plan investing because your involvement is by definition passive. All you need to do, if you haven’t already, is set up a SELF-DIRECTED IRA with an independent custodian, like Diredted IRA, Specialized IRA Services, or Vantage IRA. Once that is done you can invest using your IRA/401K/ROTH-IRA… or several other self-directed retirement account forms.

All our investment and Private Placement Memorandums are based on individual properties, and every property is different and will therefore offer different returns. 

Our returns typically consist of two parts:

Preferred Return from Cash Flow: Each investment is selected such that it pays an minimum average annual preferred return of at least 6% (depending on the individual property deal this could be higher than that) which is paid out quarterly via direct deposit into your bank account or by check. In other words, the investors get paid first before the sponsors get paid anything. This protects you as an investor and makes sure we only pick projects that have strong cash flow outlooks.

Profit Share/Back End Profit: Upon a Sale or Refinancing of the property it is our goal to return 100% of the initial invested amount to each investor, and then do a profit split between sponsors and investors.

Yes! We’re here to guide you and can provide educational resources that will help you confidently make smarter investing choices.

When you invest in a REIT, you are buying shares in a company, just like when you buy shares in a stock. You do not own the underlying real estate, you own shares in the company that owns those assets.

When you invest in a real estate syndication, you are investing directly in a specific property. Together with the other limited partner investors and general partners, you will own the entity (usually an LLC) that holds the asset. Thus, you have direct ownership.

When you invest in an apartment REIT, that REIT will likely own and manage a lot of apartment buildings in multiple markets across the country. With a real estate syndication, you are investing in a single property in a single market.

With a REIT, you can invest a very small amount of money, just like a stock. Syndications typically have higher minimum investments, often $50,000 or higher.

When you invest directly in a property through a real estate syndication, you get the benefit of a variety of tax deductions, including depreciation. In some case those tax benefits can be quite substantial. The depreciation benefits often surpass the cash flow, so you’re showing a loss on paper while you’re actually getting positive cash flow. Further, you can use those paper losses to offset your other income, like income from your job.

When you invest in a REIT, because you’re investing in the company and not directly in the real estate, you do get the benefits of depreciation, but those are factored in before you get your dividends, so you don’t get any tax breaks on top of that, and you can’t use that depreciation to offset any of your other income. Andany dividends are taxed as ordinary income, which can contribute to a bigger, rather than smaller, tax bill.

It varies from property to property, but in general as a LP (Limited Partner) you should expect to receive a cash distribution on a quarterly basis, and then also upon an exit event. The first quarterly cash distribution is typically a short time after the end of the quarter in which the property closes.