Today we learn about the advantages to this hands-free fixed-income property investment; also what are the investor requirements; as well as how one receives the annual fixed payouts plus profit share at fund close.
What are the advantages of this type of investment?
Real estate equity funds can provide stable and hands-free income.
Real estate equity partnerships are established to raise capital for ongoing real estate investment. A general partner (GP) creates the fund. The GP asks accredited investors, known as limited partners (LPs) to invest equity in the partnership. Those funds, along with money borrowed from banks and other lenders, are invested, in our case, in exclusive Florida real estate properties developed by BAI Capital.
Fixed income real estate equity partnerships are a good investment choice if:
Gain access to exclusive US investments.
Increase your wealth with returns in US dollars.
Diversify your portfolio and maintain ties to your home country.
Rather than having to manage the property, and/or rental incomes, the returns from real estate equity partnerships arise from simply investing alongside the developer of the project.
What are the investment and investor requirements?
The main requirement is to qualify as an SEC Accredited Investor
How do I qualify as an SEC Accredited Investor?
There are 5 main prerequisites:
Individual net worth (without any exclusions), or joint net worth together with spouse in excess of $1,000,000.
Individual income in excess of $200,000 in each of the past two years, or joint income with spouse in excess of $300,000 in each of the past two years, with expected income in excess of that amount in the current year.
Qualifying via professional accolades.
Being a “knowledgeable employee” of a private fund.
“Family offices” and/ or limited liability companies with over $5 million in assets.
How does one get payouts in development equity partnerships?
By investing directly into the developer company as an equity partner one can receive secured 7% minimum yearly income – in US Dollars.
Additionally, once the development is completed and the units are sold, (about 5-7 years) the fund is sold for profit with respective capital dispersed to the investors accordingly. The annualized return amounts can surpass 25%.
Takeaways on Fixed Income Property Investments
There are many advantages to investing as an equity partner in a property development fund.
Location, as always, is key. Furthermore, working with a developer with experience in the industry is a given. Lastly, options to re-invest as a unit owner is a strategy to continue to receive returns or appreciation in the long term, by converting the equity share into outright ownership.
For more info on the fixed income property opportunities offered exclusively from BAI Capital, including Archer Place mixed-use Condos in Gainesville Florida, click below.