Who can invest with Multifamily Acquisition Group?
Investor Qualification:
At least one of the following questions must be answered in the affirmative to qualify as an investor:
- I have had an individual income in excess of $200,000 in each of the two most recent years and reasonably expect an individual income in excess of $200,000 in the current year.
- My spouse and I have had joint income in the excess of $300,000 in each of the two most recent past years and we reasonably expect joint income of $300,000 or more in the current year.
- I have an individual net worth or joint net worth with my spouse in excess of $1,000,000.
- I have read the required disclaimer below and the foregoing statements are true and accurate to the best of my information and belief and I will promptly notify Multifamily Acquisition Group of any changes in the foregoing answers.
Does Multifamily Acquisition Group, LLC have a minimum investment amount?
At times it may vary depending on the purchase price of the property, but usually our minimum starting investment is $50,000 per each property.
How soon do I receive payments on my investment and when does my check come?
On a quarterly basis. However in initial closing the first distribution may be six months on some projects with a catch up clause
Is my investment insured?
No, your equity investment is not insured by FDIC or by Mortgage Insurance (PMI) but the properties that we invest in are insured for standard losses.
Is it possible to exit an investment early
Legally there is no obligation to permit an early exit from a typical transaction. However it has occurred and since all of our assets are performing well we can typically fill a stabilized position. It may be necessary to offer the new investor a slight payback depending on the asset and length of time remaining. In other words when a property reaches stability it is cash flowing well and the risk is highly mitigated making a buy out straight forward.
Is there any objectivity when considering a specific property?
This is a great question and most critical when making an investment decision. Most transaction requires a 50K minimum investment, with an unlimited amount of accredited investors. Since we sign on the debt the lending institutions is very interested in overseeing every aspect of a typical investment. This definitely includes extensive underwriting oversight, PPM, and Operating Agreement review at a minimum, to extensive background checks on the managing members. In addition most investors have CPA's, Advisors, and Attorneys or in many cases are Lawyers and Advisors themselves. We can have two to thirty investors that all sophisticated and typically extremely prudent in their investment due-diligence. So the answer is a resounding yes, many eyes are looking at each deal and always welcome any questions.
What would happen if a disgruntled partner or staff member mis-appropriated funds or did not conform with the PPM or operating agreement
First and foremost this would indeed be extremely unlikely based on the pedigree and stability of the partners. Council has indicated this would most likely rise to a criminal complaint and a Securities violation which could be classified as a Federal Criminal Offense.