Question 1

What am I investing in?

Accepted Answer

Real estate syndications are group investment opportunities.  As a Limited Partner / passive investor in a real estate syndication, your capital is invested alongside other investors in a single commercial asset (e.g., a 125-unit apartment complex in Tampa, Florida).

The best part about passively investing is you don’t have any other responsibilities – you get to leave the hard work to us!  We, as General Partner in the deal, will actively manage the asset and execute the business plan.

Question 2

How often do you offer multifamily investment opportunities?

Accepted Answer

These types of deals are unique and highly sought after.  We spend a lot of time underwriting deals and submitting offers, but very few of them end up going to contract.  We typically offer 1-3 investment opportunities per year to our investors.

Question 3

Once a deal is live, how long do I have to make a decision?

Accepted Answer

Every deal is different in how quickly it “subscribes” and closes to investors – much of that depends on the market, expected returns, and the size of the capital raise.

We’ve seen deals fill up in a couple of weeks while others are available for 30-60 days.

Keep in mind these investment opportunities are being sent out to a few hundred investors to evaluate, and there’s space for only 40-60 total investors on the average deal.

The quicker you can act in your evaluation and reach out to us with questions, the more likely you’ll be able to participate before it fills up.

Question 4

What is the investing process?

Accepted Answer

As soon as we have a deal under contract, we’ll send you an email with high-level details of why we love the deal, business plan objectives, and the potential returns.

You’ll be invited to participate in an investor webinar that’s typically a couple of weeks after we initially notify you of the deal, so you may want to block off the time on your calendar and attend this event live to ask questions.

Once the webinar is completed, we’ll email out a recording with the slide deck that includes all the business plan details and a link to review the documents in the investor portal.

If you love the deal and want to invest, you’ll complete the documents in the investor portal and wire your funds with the instructions provided.  (And don’t worry, we’ll walk you through each step when it’s time and make it super simple.)

Question 5

What types of accounts can I use to invest?

Accepted Answer

You may invest individually or jointly with your spouse with funds wired from your bank account or with funds from a self-directed IRA or solo 401(k).  Or you may invest through an entity like a trust or limited liability company (LLC).

Question 6

How do I get started and access investment opportunities?

Accepted Answer

Due to SEC regulations and our unique partnership structure, we must have a pre-existing substantive relationship with our investors before we’re able to send live investment opportunities.

Getting started is simple - just fill out the investor form and schedule a call with our team HERE.(https://www.volhawk.com/start-here)

Question 7

What types of investors do you accept?

Accepted Answer

Depending on the structure of the deal, we accept both accredited and sophisticated investors (see definitions below).

DEFINITIONS

Accredited Investor:  Your individual income has been $200,000 or more in the past two years, and you have a reasonable expectation of reaching the same income level this year.  OR  Your joint income with your spouse has been $300,000 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 your spouse) exceeds $1,000,000, excluding your primary residence.
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Sophisticated Investor:  You have sufficient knowledge and experience in financial and business matters to make you capable of evaluating the merits and risks of the prospective investment.

Question 8

Are there tax benefits to investing in multifamily?

Accepted Answer

Yes.  As a multifamily investor, you can get the tax benefits of property ownership, including accelerated depreciation through cost segregation, which can help lower the taxable passive income you receive.

Cost segregation identifies costs that would typically be depreciated over 27.5 or 39 years and reclassifies them to permit a shorter, accelerated depreciation method.  This segregation model leads to substantial tax savings for the investor versus the standard depreciation model.

Each year, you will receive a Schedule K-1 tax form for your tax filings.  This form will report your income and losses for the investment.

There is an opportunity to apply passive losses against your other sources of passive income.

DISCLAIMER:  Volhawk Property Investments LLC, its partners, and its representatives do not provide tax, legal, or accounting advice.  This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice.  You should consult your tax, legal, and accounting advisors before engaging in any transaction.

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