In a real estate syndication, the general partners (GPs) and limited partners (LPs) have distinct roles:

• General Partners (GPs):
  • Locate the deal
  • Develop and implement the business plan
  • Secure financing
  • Coordinate the transaction
  • Manage the investment post-transaction

• Limited Partners (LPs):
  • Also known as passive investors
  • Invest money to own a portion of the deal without day-to-day operational involvement
  • Limited liability, restricted to the invested capital amount

Investing in multifamily real estate offers several advantages, including:

• Steady Passive Income:

Provides a consistent stream of passive income

• Wealth Building:

Opportunities to build wealth through appreciation and equity

• Diversification:

Helps diversify your investment portfolio

Investing in a multifamily syndication offers distinct advantages over solo ownership. Here are a few reasons why:

• Expertise and Experience:

Benefit from the syndicator’s expertise and experience in real estate investment.

• Qualification for Loans:

Tap into the syndicator’s ability to qualify for loans, potentially securing better financing terms.

• Network of Resources:

Access a network of resources that are available to the syndicator including attorneys, contractors, and property management.

• Economies of Scale:

Enjoy economies of scale that are often unattainable when purchasing independently.

Investing in our real estate syndications offers a range of direct and indirect benefits. Here are just a few:

Direct Benefits:

• Cash Flow:

Enjoy regular cash flow through property operations, distributed to investors during the hold period.

• Equity Growth:

Witness growth in the equity invested as the property’s value increases. Upon sale, investors receive their initial investment along with the accrued equity.

• Tax Benefits:

Capitalize on tax advantages, including depreciation. Real estate investments may yield a “paper loss” for tax purposes, potentially reducing your overall tax liability. Additionally, passive income or long-term capital gains from the investment are typically taxed at lower rates.

Indirect Benefits:

• Leverage:

Leverage financing to amplify profits, as debt acts as a lever.

• Market Independence:

Real estate operates independently of the stock market, often showing resilience during economic downturns.

• Tenant Stability:

Benefit from the stability of multifamily properties; if one tenant moves out, others can still contribute to covering expenses and mortgage payments.

• Control over Value:

Multifamily properties are valued based on the income they generate. Therefore we are able to maintain greater control over the property’s value compared to investments in single-family homes which are valued based on ‘comps’ or similar properties in the area.

Note: Ama X Equity does not provide tax advice. Please consult your own financial or tax advisor for your personal tax situation.

As with any investment, there are inherent risks, and the possibility exists that you could experience a partial or complete loss of your invested principal. It is important to note that this risk is not unique to real estate syndications but is a common aspect of almost any investment.

Our investments are unique as they involve purchasing businesses anchored by real estate, such as an apartment complex. Risks associated with profitability may include factors that could impact the property’s success. While many foreseeable risks are addressed through our  purchase criteria, ongoing education, experience, and collaboration with experienced partners, unforeseen challenges can still arise. Some hypothetical examples of such risks include:

• A large Insurance Loss:

Events like fires or natural disasters leading to a significant insurance loss, impacting the property’s potential income.

• Expense Increases:

Unexpected and substantial increases in expenses, such as taxes or insurance.

• Policy and Regulatory Changes:

Changes in policies or regulations, potentially influenced by elections, that negatively affect businesses or the real estate sector.

Despite our thorough efforts to identify and mitigate risks, it is essential to acknowledge that unexpected events can occur. That said, we select properties and focus on markets that are less susceptible to various risks. In summary, while every investment carries its unique set of risks, we work to minimize and manage these risks to the best of our ability.

We welcome Accredited Investors to participate in our projects. In certain offerings, we may extend invitations to Sophisticated Investors with whom we have established relationships, in accordance with Securities and Exchange Commission (SEC) regulations. Additionally, we may consider accredited investors to act as key principals (KPs) or loan guarantors. This presents a unique opportunity for investors interested in acquiring larger properties independently or aspiring to take on a general partner (GP) role in the future.

Absolutely! Investing with retirement funds in one of our syndications allows you to avoid penalties for early withdrawal, as it doesn’t involve withdrawing funds. To get started, open a self-directed account (either a self-directed IRA or Solo 401k) with a qualified provider. The next step involves rolling an existing retirement account into your self-directed account, a process guided by the provider. Once your account is funded, investing from your retirement account is similar to investing with cash.

It’s essential to note that investing through a retirement account can have unique tax implications. We strongly recommend consulting your tax advisor before deciding to invest in this manner. While it comes with specific considerations, many of our investors find it advantageous, and it’s a common practice within our community.

Note: Ama X Equity does not provide tax advice. Please consult your own financial or tax advisor for your personal tax situation.

Yes, you can invest through a trust or business entity (LLC or corporation).

Typically, our syndications aim for a 5-year hold period. Therefore, you should anticipate your funds being committed to the investment for at least this duration. However, the actual timeframe may vary. If the project is progressing well, it could be shorter than 5 years. Conversely, it might extend beyond 5 years if selling at that time isn’t deemed advantageous.

It is important to recognize that these investments are illiquid, meaning your initial investment cannot be withdrawn during the hold period. Returns on your investment will be distributed upon the sale of the property.

While the minimum investment can vary, the typical minimum is $50,000 – $75,000.

Distributions are typically made on a quarterly or monthly basis, depending on the specifics of each deal. The exact distribution frequency is outlined in the offering documents provided to investors. It’s crucial to note that while distributions are a regular aspect of our investment model, they are not guaranteed. The decision to distribute is made by the sponsors, and distributions are provided as long as it’s deemed feasible without imposing undue risk on the overall investment.

In the event of any significant developments affecting distributions, rest assured that we prioritize communication and will keep you informed.

Investors receive a detailed monthly report containing essential information such as property updates, performance indicators, and property financials. This report helps you understand how the investment is performing relative to our business plan.

Additionally, we value open communication. Throughout the investment period, we are always available to address any questions or concerns you may have about your investment.

Each investor will receive an IRS K-1 form, issued annually for the investment in partnership interests. The K-1 form reports earnings, losses, deductions, and credits, providing the necessary information for preparing your tax returns.