Frequently Asked Questions

We deal with a wide range of commercial multifamily real estate properties.

As a partner in the LLC  that purchases the properties, you will receive a K-1. A K-1 is a tax  form used by partnerships to provide investors with detailed information  on their share of a partnership’s taxable income. Partnerships are  generally not subject to federal or state income tax, but instead issue a  K-1 to each investor to report his or her share of the partnership’s  income, gains, losses, deductions and credits. The K-1s are provided to  investors on an annual basis so that each investor can include K-1  amounts on his or her tax return. 

An accredited investor includes anyone who:
-->  earned income that exceeds $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, OR

--> has a net worth over $1  million, either alone or together with a spouse (excluding the value of  the person’s primary residence).

In addition, entities such  as banks, partnerships, corporations, nonprofits and trusts may be  considered as accredited investors. Of the entities that would be  considered accredited investors and depending on your circumstances, the  following may be relevant to you:

--> any trust, with  total assets in excess of $5 million, not formed to specifically  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.

A Sophisticated Investor  doesn’t meet the requirements of an Accredited Investor but they have  investor experience. This could mean the person believes they have  sufficient knowledge and experience in financial and business matters to  evaluate the merits and risks of the prospective investment. 

Investor funds are used  for the total acquisition cost of the property. This includes but is not  limited to the down payment for the actual purchase of the property,  acquisition fees, legal and transaction costs, capital improvements, and  reserves. 

 Distributions are planned quarterly.  

Absolutely! Investors are  allowed to visit the property before investing and during the life of  the project. If you provide sufficient notice, we will personally be  there to show you around and answer any questions. 

Absolutely, and typically  involves specific rules and structures, therefore it is crucial to  consult with a tax professional who is knowledgeable about retirement  accounts and real estate investments before investing in real estate  through any retirement account. 

You can contact us by phone at (858) 900-3442 or by email at info@MultiFamilyCapitalEnterprises.com.  You can also fill out the contact form on our website and we will get back to you as soon as possible.