Frequently asked questions
What Are The Minimum Investments & Denominations?
The Minimum investment is $50,000 for most investments unless otherwise mentioned. If you invest more than $50,000, it can be in any denomination above $50,000 i.e $50,001 or $100,000 or $125,000. We typically see $25,000+ increments. Priority is given to larger investments. Sponsor has right to accept lessor than $50,000 amounts.
What Is An Accredited Investor?
To be an accredited investor, a person
OR entity (Trust, LLC, LP, Corp) MUST:
1. Person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or a higher income in the current year. An individual must have earned income above the thresholds either alone or with a spouse over the last two years.
2. A person has a net worth exceeding $1 million, either individually or jointly with their spouse.
3. The SEC also considers a person to be an accredited investor if they are a general partner, executive officer, or director for the company that is issuing the unregistered securities.
4. An Entity, Trust, LLC is considered an accredited investor if it is a private business development company or an organization with assets exceeding $5 million. Also, if an entity consists of equity owners who are accredited investors, the entity itself is an accredited investor. However, an organization cannot be formed with the sole purpose of purchasing specific securities.
5. If a person can demonstrate sufficient education or job experience showing their professional knowledge of unregistered securities, they too can qualify to be considered an accredited investor.
When Do I Get My Money Back?
Timeframes are approx. 3-7 years. However, Free Cash flows are distributed quarterly via ACH into your account and we typically cash refinance the property in years 3-4 to return all or a portion of your initial investment. We use the BRRRR method of apartment investing. (Buy, Rehab, Re-rent, Refinance, Repeat).
Your returns are achieved via:
1. Preferred returns and Free cash flow from operations. Distributed quarterly.
2. Capital events from a cash out refinance. Typically in yrs 3-4, and or profits from a sale. Typically in years 5-7.
3. Tax depreciation acceleration write offs towards your person income via cost segregation.
What Are Typical Investor % Returns?
Investors receive a preferred return....typically 6-8%. Investors also receive free cash flow from operations, profit/proceeds from a refinance or sale of the property and tax income benefits from accelerated depreciation passed through to you via K1 statement on your personal tax returns.
Total combined returns are projected 15-22% annually for investors.
Returns come by way of:
1. Free Cash flow from operations.
2. Capital return from a refinance.
3. Profit and capital return from a sale.
4. Tax personal income benefits from accelerated depreciation
We look for property cash on cash (COC) returns of 8-10%+.
We as the general partner, take on the risk of signing on the loans, managing the property, managing day to day operations and the asset. Investors are shielded from the general partner liabilities to be able to collect mail box money as they call it.
Do I Get Tax Benefits?
Yes. As a Class A member has prorata ownership of the investment. You will receive pass through tax benefits on your K-1 statement towards person income. We utilize cost segregation analysis on our investments to help accelerate the depreciation for our investors to help pass through offsets for your personal income taxes in year 1 and 2 of investment.
Can I Pull My Money Out Anytime?
No. However, you do have the right to sell your shares and we typically have redemption rights at years 3, but it must go through partnership review and the partnership has the first right of refusal to buy your shares out at value. You should expect to have your investment for the duration. Keep in mind we work to refinance our projects in yrs 3-4 which typically produces a capital return event for the partners initial investment.
Is My Investment Guaranteed or Safe?
Every investment has risk, but apartment investing is considered one of the most secure investments because it's a tangible asset with multiple tenants paying the expenses of the building. Real estate prices dip, go sideways and rise over time, but less so with multifamily. Preservation of capital is a cornerstone of sound investment decisions. Multifamily is a solid place for long-term investing. There are no guarantees in life. This is why choosing who you invest with is important.
Predicting inflation is like betting on who will win the World Series before the season starts- there are just too many factors to consider. But when inflation does kick in, multifamily keeps pace.
Please read the full offering to understand all risks involved in real estate investing.
Can I see My Investment Online 24/7?
Yes. We utilize investment software that will give you realtime 24/7 access to your money, documents, tax documents and distributions. We also use a layered accounting approach with oversight to ensure all money is watched by multiple eyes, 3rd party bookkeeper, 3rd party accounting and investor relations. We value transparency and integrate. At the end of the day, we want investors for life so our reputation is critical.
Does The Brennan Pohle Group Invest Its Own Money?
Yes. Unlike some syndicators, we always put our own money in along side our investors, we sign on the loans, we take the risk, we handle all the operations to protect and shield our investors. We intend to put 10% or $100,000+ of the equity into each deal and sign on the loan. Every deal is different. Please read the full offering to understand the offering structure.
What Fees Does Brennan Pohle Earn?
As "The Manager" and "General Partner" (Brennan Pohle) typically charges a 1-2% acquisition fee (purchase price), 1.5%-2% asset management fee (revenue) and sometimes a .5%-1% refi/disposition fee (loan amount/value at sale. That's it.
We don't charge random fees, capital fees, etc, etc... like many syndicators. We invest alongside our investors. We have skin in the game and take on the risk with you. Our goal is legacy wealth. Our goal is to buy, rehab, rent, refinance, repeat... and hold onto assets long term while giving investors the ability to get out upon a refi or sale.
How Do I Invest? Step by Step
Its easy. Whether a fund or specific deal.
STEP 1: Sign up FREE and register to our investent portal.
STEP 2: Once you get your free access, you'll see our current and future investment opportunities. You can review the offering memoradum and legal documents. If you have further questions, set a
face to face,
phone call to go over any questions you have. We have both Funds and Specific Investments.
Set Calendy Meeting
STEP 3: Once you are ready to go, we will send a e-sign for you to sign the legal documents. Once documents are signed and your investment approved, we'll provide you with the secure wire info for your investment.
STEP 4: Sit back and check into your 24/7 investor portal.
Do I Get Actual Ownership Of The Investment?
Yes. You are a partner alongside us and own an equity percentage of the asset itself. The typical investment includes Class A and Class B shares. As the investor partners, you are typically the Class A shareholder with majority % of profit and cash flow as well as preferred return.
Please see each opportunities prospectus for details.
How Do You Manage The Properties Around The USA?
Great question. Depending on the asset size, we have professional property management crews locally in the market or onsite everyday. With larger assets, we have leasing staff, maintenance, repair crews onsite daily. With smaller assets we have professional property management in the local market. We also install live camera feeds on all our properties so we can monitor the properties anywhere in the world.
We utilize local construction crews and staff within each market.
The Brennan Pohle Group is able to asset manage all the properties from our dual headquarters in San Diego CA and Austin TX.
What's The Difference Between a FUND and SPECIFIC DEAL Investment?
A fund is similar to a specific deal, but with more diversfication in properties. We only do asset specific funds whereby we invest in one asset class i.e. multifamily apartments vs having a fund invest in multiple asset types. We do this for asset protection and possible enterprise acquisition.
HERE IS HOW FUND WORKS.
HOW SPECIFIC DEAL WORKS?
A specific deal focuses on one asset at a time and your money goes specifically to that investment only. The returns for a specific deal investment and a fund are similar.
What Is The Brennan Pohle Groups Experience?
Thank you for asking. We started in 2010 and have been acquiring, rehabbing and developing multifamily apartment buildings for over 10 years. Here is a quick video of our start.