Captain your path to financial freedom and fast track wealth accumulation.
- Investing in apartments can help you prepare for retirement by providing consistent cash flow while also accelerating your wealth.
- Year after year real estate proves to be one of the most stable and reliable assets. It typically is less risky and provides better overall returns than the stock market.
- As a passive investor, you can sit back and enjoy. There is no action or time commitment on your part. Just enjoy regular cash flow and property appreciation.
“90% of all millionaires become so through owning real estate”
-Andrew Carnegie
Why Invest in Multifamily Apartments?
Investing in multifamily real estate pays the investor through cash flow, appreciation, tax depreciation benefits, and provides a hedge against inflation.
Real estate investing is and always has been one of the most certain investments. Depending on the type of real estate, location, and market, (among other factors), long term returns can average around 8% - 10% according to the S&P 500 Index.
What is Passive Investing?
Passive investing in multifamily real estate through syndications is a pivotal shift in traditional real estate investing that started less than 10 years ago and has increased in momentum ever since. It involves a group of like-minded individuals coming together to leverage their buying power to purchase large multifamily properties that, otherwise, would be unattainable to most individuals. Specifically, a passive investor is someone that invests a specified amount of cash to purchase the property with others. Passive investors are also called limited partners and do not actively participate in the real estate operations. Passive investors receive regular cash flow distributions from monthly profits and are also able to take advantage of significant tax depreciation benefits.
Each multifamily opportunity is led by general partners who are active investors responsible for all aspects of the business and asset management. In addition, each property is operated by a professional third-party property management company.
How Does it Work?
At Capitano Investing Group we offer investment opportunities for building wealth while also building prosperous communities. We invest in opportunities where the business plan includes provision to enhance the sense of community at the property. We believe that by making financially sound investments in real estate markets with high potential we can revitalize those communities, creating a better place for residents to live, while simultaneously generating monthly/quarterly cash flow and appreciation for our investors. It’s a strategy that produces a positive impact for everyone involved.
Learn more about how we qualify multifamily investment opportunities.
Value-Add Strategy
1- Purchase: Purchase 100+ unit apartment complex that needs improving with rents $100 or more below market.
2- Increase NOI: Hire 3rd party professional property management team. Maximize Net Operating Income (NOI) by improving operations and reducing expenses.
3- Force Appreciation: Force appreciation through a Value-Add Strategy for interior and exterior renovations.
4- Increase Income: Increase rents up to market levels over years 1-3.
5- Refinance: Refinance property in year 2 or 3, returning a portion of the original investment to investors (typically 40%-50% returned).
6- Stabilize: Stabilize property by completing renovations and increasing occupancy to 90% or better.
7- Sell Property: Sell property in year 5 or 6, returning remaining capital to investors as well as distributing the investor's equity portion of the appreciation at property sale.
Process for Investing in Multifamily Properties
- General Partners sign the purchase and sales agreement for a new property opportunity
- Capitano presents the opportunity to potential Passive Investors
- Interested Passive Investors commit to investing in the opportunity and sign the subscription documents
- Passive Investors wire funds to designated account for property closing
- General Partners close on the property
- Operation of property transitions to new ownership
- General Partners implement their business plan
- Passive Investors (Limited Partners) receive monthly or quarterly distribution of cash flow
- Refinance of property typically occurs in Year 3 with partial return of investment to Passive Investors
- Property is typically sold in Years 5-7 with distribution of profit to Passive Investors and to General Partners
