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Multifamily Mindset and Six33Props, LLC
Why Multifamily Investing?
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Why Multifamily Investing and Why Six33Props?Multifamily commercial real estate investing is arguably the most stable, investment vehicle there is offering higher returns and less risk than residential investing. Residential multifamily is considered up to 4 units: duplex, triplex or fourplex. 5 units or more is considered commercial. The beauty of acquiring commercial properties of 20, 50 or 250+ apartment units is generating substantial cash flow that even if there are vacancies, which will normally be the case at some point in time- the cash flow from the existing rents still more than cover the debt service (mortgage note). Moreover, the potential loss of cash flow has already been accounted for in the financing agreement when purchasing the property. What does this mean for the investor? It's a truly hands off investment transaction with great cash flow potential and (by value added strategy), immediate increased equity stake at the end of the deals term. I've teamed up with Commercial Property Advisors who are expert investors in the MF space and as part of their organization get one-on-one mentoring and instruction on how to buy right using the right strategies that have amounted to substantial profits for themselves and more importantly, their investors. Six33Props is now positioned to do the same.
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How deals are structured?Generally speaking, investors normally receive 75-80% of the net operating income after all expenses have been paid. They also receive a portion of the equity generated at the end of deals term- usually a 5, 7 or 9 year term depending on the acquisition strategy and investment goals.
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What are the tax benefits?The tax deductions given for real estate investing are off the chain! See your own CPA for specific benefits for your investment strategy.
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What accounts are used to invest?Just about every source of legitimate income or assets can be used to invest from the traditional 401k's, to lines of credit, to fundrise and crowdfunding. Cash can also be used as well.
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What are my funds used for?Investor dollars are used for down payments, capital reserves and all monies needed to get to the bank funding of the purchase- usually 75 to 80% of the actual purchase price.
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What is the hold time and the average return on investment?The average hold time for these investments range between 3-7 years with an ARR of 16-21%
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What is an accredited investor?An accredited investor has an annual income of $200,000/yr or $300,000 (if married) and has a net worth of 1 million dollars ((excluding the value of the primary residence.) A deal can have an unlimited number of accredited investors.
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How often are distributions made?Distributions are normally paid out quarterly to the investors.
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