Investor Resources

What Is Real Estate Syndication?

Real estate syndication is most simply defined as a real estate transaction that involves sponsors and investors. MRTG Capital serves in the sponsor role and performs all of the heavy lifting so that your role as the investor is a passive one. MRTG Capital will first perform all duties to find and locate a multi-family property that meets our acquisition criteria. After our thorough due diligence if the property is found to be a solid investment we will get the deal under contract and present to you our investors. Once the deal has been closed, MRTG Capital is responsible for the improvements and management through to the eventual sell of the property.

Who Can Participate As An Investor?

MRTG Capital will primarily conduct our offerings under U.S. Securities and Exchange Commission Rule 506(b) which allows for an unlimited number of Accredited Investors and up to 35 Sophisticated Investors in each investment. MRTG Capital will have potential investors complete a preliminary offer questionnaire to determine eligibility. The information you supply below will be kept strictly confidential and is only for the purpose of providing you information about possible investment opportunities, if you qualify financially to review such information. This is not an offer of securities. The actual investment offering will be made only through a Private Placement Memorandum. After you complete this questionnaire, we will contact you. Before we discuss specific investment opportunities, we want to get to know you and we want you to get to know us.

What Is An Accredited Investor?

The U.S. Securities and Exchange Commission defines the financial criteria for an Accredited Investor as someone having net worth over $1 million, excluding primary residence (individually or with spouse or partner). Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year.

What Is A Sophisticated Investor?

The U.S. Securities and Exchange Commission defines the financial criteria for a Sophisticated Investor as someone having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment

Investment Structure

Investors will not have a debt position in the property but will have an equity position where they will share the cash flow along with a portion of the equity gains when the property is sold. Investments will typically be financed with 70% – 80% loans, with the remainder of the capital being provided by Investor capital. Investors become Members of a specific LLC that has been formed to acquire one or more properties. All MRTG Capital LLCs will engage in the business of acquiring, improving, operating and disposing of multifamily real estate assets. Each acquisition will be acquired by a single purpose LLC. This structure enables us to protect individual assets. MRTG Capital will act as the Manager of each LLC.

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Distributions

CASH FLOW SPLITS

MRTG Capital pays investors a preferred rate of return, usually in the range of 8%-9%, depending on the property. The investors are paid first from cash flow generated from operations of the property; then the Manager (MRTG Capital and its associates) are paid. We evaluate cash flow for distribution quarterly.

DISPOSITION SPLITS

When an asset is sold, usually in 3-7 years, the investors get paid back their capital contributions first as a return of capital. After all books are reconciled; any gains are split between the Investors and the Manager, as described in the LLC Operating Agreement. The target annualized return for our properties are typically between 18%-24% annualized.

INVESTOR COMMUNICATIONS AND REPORTING

We will hold regular conference/webinar calls to update investors of the property status. We hold a monthly Investor call for the first 4 months after we close on a property and quarterly web/Teleconference calls each quarter after that. We send out executive summaries and the financial reports every two months. We are very approachable by our investors and our team is available to answer any questions that you may have.

ANNUAL REPORT FOR TAX PURPOSES

Members will receive annual reports, including a K-1, that contains all information necessary for the Members to complete their individual tax returns.

Why Invest In Multi-Family Real Estate?

The apartment market, as an investment vehicle, offers investors greater returns with less risk than other investments.

The apartment market is less reliant on business cycles for occupancy and will continue to benefit from demographic trends and population growth.

Multi family ownership is more management intensive than some other asset types. This distinction ensures “value added” opportunities.

Apartment demand is driven by an expanding and transitional population, and, at present, by record numbers of foreclosures

Investing in commercial real estate, coupled with rotating appreciation every 3-5 years into properties in new, emerging markets is a proven strategy for compounding wealth.

Many investors prefer the opportunities and advantages that come from participating in large, professionally managed properties versus individual ownership of smaller properties.

Our experience in multifamily investment can help insulate investors from the pitfalls of managing tenants on their own.