FAQ
You must qualify as an “accredited” or a “non-accredited” investor. These designations are to ensure that investors possess a certain level of financial and investing competence.
Non-accredited
Accredited
- 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, OR
- has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
- 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.
$50,000 is the minimum amount to invest in a project. Learn how to invest using your current IRA/401K money without penalty from a third-party self-directed custodian company. Please contact us for more details.
Yes. Investors are able to invest through their traditional self-directed IRAs. Investors are also able to invest through their LLC, LP, or Trust. Please contact GMA Capital Group if you have questions about how this works or need help selecting a custodian.
Multi-family properties are generally viewed as dependable investment classes. In order to protect investors and their money, we access “off-market” or “below-market” deals through reputable sources and collaborate with local, experienced property management companies. By having those knowledgeable in the particular market operate the property, profits can be maximized and expenses reduced. Additionally, we as sponsors also invest our own personal capital so there is an alignment of interests between ourselves and investors. Nevertheless, it is important to understand that no investments are completely void of risk.
We typically hold each investment for 18 months to 5 years before implementing an exit strategy, such as through refinancing or sale. The timeline may vary depending on the property and business plan; economic conditions also can influence our strategy. Upon acquisition of the asset, and throughout its life, you’ll receive a projected timeline. We recognize that consistency is key in our projections and promise to leverage the most lucrative exit strategy to secure maximum returns for all investors.
Multi-family property investments are subject to various market forces, so returns are never guaranteed. That being said, we typically aim to produce double-digit annual returns for our investors over the course of the investment. The return comes from cash flow, appreciation through value addition and sale profits. We target a 12%-15% IRR over the entire investment duration. Our investments include our own capital and every effort is made to maximize investor returns. Business plans, projected returns and equity structures are discussed with investors in detail before finalizing an investment property deal.
Our investor can expect to receive distributions based on the specific business plan for each investment property. GMA Capital Group may also distribute additional capital to investors from time to time. This depends on the performance of the properties and when properties are sold or refinanced.
No. Investing in commercial real estate is typically a longer-term endeavor than investing in stocks and bonds. When making an equity investment, investors will be notified of the expected holding period for the asset prior to the outset of the project and be kept informed with updates throughout. Cash distributions are issued through cash flow generated by the property during ownership. Generally speaking, investors will not receive their full principal investment back until they exit the investment through sale of the property and reap profits when it is ultimately disposed. GMA Capital Group DOES NOT guarantee any returns on investments.
