“I see opportunity for improvement in everything. I have built my career as a developer of people, processes and outcomes with PURPOSE and today I am blessed to share a wealth of insight and access.”
– Michael Thomas
“Profit is not a dirty word, because without a profit you have nothing to give back.”
– Dave Thomas, Founder of Wendy’s
Cooperative real estate investing across General and Limited Partners who each participate in the acquisition or new build investment and management of Multifamily projects.
The rate of return based on the cash flow and equity investment. Also referred to as CoC, the return is calculated by dividing the cash flow by the initial equity investment.
An IRR is the rate needed to convert the sum of all future uneven cash flow to equal the initial equity investment. That “uneven cash flow” can be cash flow, sales proceeds or appreciation, and principal pay down.
The activity of finding, qualifying, and closing an apartment building. Oversight of the business plan through to its successful completion.
Investing in apartment syndications that are managed entirely by a General Partner.
The owner of a partnership who has unlimited liability. Also referred to as the GP, a GP is a managing partner and is active in the day-to-day operations of the business. In apartment syndications, the GP is also referred to as the sponsor or syndicator and is responsible for managing the entire apartment project.
The partner whose liability is limited to the extent of their share of ownership. In apartment syndications the LP is the passive investor who funds a portion of the equity investment.
Improving a property by adding value. This means making improvements to the operations or the physical property through exterior and interior renovations. The goal is to increase the revenue and/or decrease the expenses.
A qualification required in many multi-family syndications the verification by a Bank or Accountant that a person has an annual income of $250,000 individual or $300,000 joint income for the last two years with the expectation of earning the same or higher – OR – a net worth exceeding $1,000,000 either individually or jointly with a spouse.
A person who is deemed to have sufficient investing experience and knowledge to weigh the risks and merits of an investment opportunity even if they do not have the accredited investor qualifications.
The minimum threshold return that Limited Partners are offered with the purpose of counterbalancing the risk associated with investing capital into the deal, which is distributed prior to the General Partners receiving payment.