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Frequently Asked Questions

Investment Questions

Q: How much may I invest?
You can invest as little as of $10,000 and up to 10% of your net worth.
Q: Why do you pay all cash for an apartment building when using a bank is a better way to leverage real estate?
We may or may not have to pay cash for our deals. We are always in conversation with lending institutions to provide financing on ‘challenged’ properties, but, we have found that many of the best deals are sold within days of going on the market or the owner needs to sell quickly and will not wait for someone to get financing. For this reason, we have the option of paying all cash for these quick sales, because we may not have time to secure bank financing. Then, if it is beneficial, we can seek financing later to free up our capital to buy another apartment building.
Q: Do I own an actual building?
No, you are investing in a fund and the fund will ‘own’ the actual building(s). All the invested money is placed into one pot and then the Fund buys the apartment buildings. Individual investors will not be on title.
Q: When do I start earning a Preferred Return?
You will start earning a return once your investment is deposited into the Fund, but distributions will not be distributed until our first building is sold or cash flow commences.
Q: What happens if I need to cash out of the investment?
You have the option of selling your investment to another investor who is in or out of this fund, but the Managers maintain the first right of refusal. Purchasers of our Units qualified hereunder may be unable to sell their securities easily, because there may not be a public market for our securities.
Q: What is the length of the investment?

Length of Offering: one year
If $500,000 is not raised within the first year, then all proceeds raised to that point will be promptly returned to subscribers of Preferred Membership Interests pro-rata, with interest, if any. Otherwise, the Fund is for five years.

Length of Fund: We expect to begin redeeming units in year three (3) with the hope to redeem all of the Members’ Units by the end of year five (5). We plan to accomplish this by selling or refinancing all Properties by year five to be able to return all Capital Contributions and unpaid Preferred Distributions.

Q: How much will I earn with my investment?
Preferred return
3-7% will be paid quarterly, provided we have sold our first property or cash flow commences.
  • 3% minimum $10,000
  • 4% minimum $25,000
  • 5% minimum $50,000
  • 7% minimum $100,000
Split after Preferred return paid to investors
  • Investors: 60%
  • Management: 40%
Q: Do investors have to be American citizens?
We welcome investors Worldwide.
Q: May I invest more money after I’ve made my initial investment?
Yes! We feel with this unique investment opportunity, that you may want to invest more. You might even be able to reinvest your distributions!
Q: May I invest in the fund if I have no experience investing in real estate?
Yes. We have many years of experience with investing in apartment buildings, so this fund is perfect for those who have little to no experience. Why? This is a passive investment, meaning we do all the work and send you your share of the profit. Most investments are passive, like ours, meaning when you invest in the stock market or a Hedge Fund, they do the work and send you a profit. This is a great investment for those who want a better return than they are getting from their bank or stock investments.
Q: I am a seasoned real estate investor, so is this investment for me?
Yes. Many people we work with have an extensive background in various types of real estate investing. But, there comes a time when it is easier to let someone else do the work while you reap the benefits. As you already understand, seeking out great deals, doing a thorough due diligence, finding reputable contractors, and seeking investors and financing can be very time consuming. Then, once the building is purchased, adding value to the building becomes a second job. We do all of this, and at the end, after the building is stabilized (90% occupancy for 90 days), we sell and distribute the profits. This is a great investment for seasoned investors.

Apartment Investment Fund Experience

Q: Do you have experience adding value to an apartment building?
We have over 25 years of combined experience adding value to apartment buildings.
Q: Why should I invest with Apartment Investment Fund?
This investment fund is for those who want a much better return than they are earning with their current investments or those who just want to diversify. Many bank returns hover around 1%, give or take, which is well below our investment fund’s preferred rate even at the lowest investment amount. If you want to earn a high rate of return, our investment is for you.
Q: Why should I invest with Apartment Investment Fund when I can find my own property?
We always welcome investors to branch out on their own, but we have an advantage with buying all cash, unlike most investors who use bank financing. Many distressed apartment owners need to close escrow within days, and by paying all cash without borrowing from a bank, we are able to buy some of the best deals on the market.

Our investments

Q: What do you buy?
We only buy distressed apartment buildings or apartment notes.
Q: What are the hidden fees?
We have no hidden fees because we believe transparency is of utmost importance. Below is a list of the Apartment Investment Fund operating fees to run the company.
Phase of Operation Basis for Fee Amount of Fee, per YEAR Amount of Fee, OTHER
Legal and accounting Professional costs in connection with this offering. Estimated to be between $10,000 - $35,000
Working capital The cost of running the company, such as, but not limited to: web site maintenance and due diligence costs incurred in locating suitable acquisitions for the company. Estimated to be between $4,000 - $25,000
Acquisition costs The fees charged to acquire a property, such as, but not limited to: market appraisals, title, recording, broker, accounting and legal fees. Estimated to be between 3%-8% of the Purchase Price.
Asset Management Fee The fees charged to manage its properties. Estimated to be approximately 3% of the money invested in a particular deal, not based on fund balance.
Preferred Return The Preferred Return is a yearly return distributed to investors based on their amount invested. The range is between 3%-7%, depending on the amount invested.
Investors/Company Management Distribution After the sale of a property, and after all debt and Preferred Returns paid, the remaining profit is distributed. 60% investors
40% management

Investment Participation

Q: I have experience, may I help?
Yes. If you have a special skill that you feel will benefit the investment fund, please contact us for more details.
Q: May I help find properties?
Yes! We encourage those who share our same passion to seek out those great deals. Please contact us for more details.
Q: Do I have the option of becoming an active investor?
We have options for active investors outside of this fund, so please contact us for more details.