Frequently Asked Questions
What is MultiVestment?
MultiVestment helps take the guesswork out of multifamily real estate investing. By researching top multifamily growth markets and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability. What's more, MultiVestment has an experienced team of multifamily real estate professionals with backgrounds in acquisitions, property management, asset management, finance, real estate law, and technology.
What type of investor uses MultiVestment?
What is an Accredited Investor?
In the United States, to be considered an "accredited investor" as defined in Rule 501 of Regulation D of the U.S. Securities and Exchange Commission (SEC), an individual/married couple must satisfy one of the following conditions:
What types of investments does MutiVestment offer?
At the moment, MultiVestment allows for equity investments. We do not currently offered debt structured deals nor do we offer development deals (although this may change in the future).
With an equity investment MultiVestment focuses on an asset's existing cash-flow, the capacity to decrease expenses and the potential for upside growth. Multifamily real estate is ideal for this type of investment because of the economy of scale and the ability to increase the asset's value by deploying a decrease expenses/increase revenue asset management model. For example, successfully reducing monthly operating expenses by $3,000 adds a direct increase in the asset's revenue thereby increasing the asset's value (i.e. selling price). MultiVestment provides a platform whereby like-minded investors pool their money to purchase a piece of a specific property or a portfolio of properties. Each property is structured as a Special Investment Vehicle such as a LLC. Investors are then entitled to a share of the cash-flow from rents as well as a share of the proceeds when the property is eventually sold. The hold period for an investment like this typically ranges between 3-5 years although may be shorter or longer.
Once a given property is purchased, who owns the property?
This depends on how a deal is structured. With equity deals, a separate and distinct LLC is created for each property or property portfolio. Equity investors participating in such deals own shares in the LLC proportionate to their individual investment. Each specific LLC either directly or indirectly owns, along with other investors, a share of a joint venture entity that owns a specific investment property, like a specific apartment building. An LLC gives you liability protection, shielding your personal assets from the investment.
How do investment opportunities get listed on MultiVestment?
MultiVestment depends on real estate sponsors to submit properties to our platform. A sponsor can be a direct owner of the asset, a real estate company, an investment property wholesaler, or a multifamily operator. All investment projects on our platform are carefully selected before made available to investors. Every deal goes through a rigorous, consistent and multi-tiered evaluation process by our experienced and expert Investment team. This includes verification of all stated operating and financial metrics, touring the property to determine its physical condition, and a thorough examination of a property's sponsor. We routinely reject many of the investment properties that are presented to us in order to maintain the integrity of our core mission which is to protect our investors.
Primarily, we search for multifamily properties that provide our investors maximum cash flow as quickly as possible. Some properties may have some level of vacancy or have the ability to add value and increase cash flow over the life of the investment. We do not currently fund ground-up development, as we believe one of the benefits of real estate investing is passive income and development projects typically take 18-36 months to generate income. While we specialize in featuring multifamily investment properties on our platform, we occasionally will consider other types of property types for such as mobile home parks, self-storage facilities, hotels, and multi-tenant industrial buildings.
Are these investments risky?
As with any investment, whether it be stocks, futures, or mutual funds, there is a risk that you will lose your investment. Even though real estate offers a relatively safe, asset-backed investment, there is no guarantee that the real estate market and/or the economy won't undergo some form of negative catastrophic change that could impact your investment. That said, MultiVestment does everything that is reasonably possible to mitigate our investor's risk profile in any given opportunity. This includes rigorous preliminary due diligence and verification of all components that are integral to a successful investment opportunity.
Does MultiVestment charge any fees to investors?
There are no fees or obligations when you register and browse investment opportunities on the MultiVestment platform. For those who choose to invest, there are fees associated with each investment. These fees depend on the price and type of investment and the complexities of each transaction and typically range between 1-3%. Upfront fees include a percentage-based acquisition/setup fee which covers items such as legal expenses, ongoing investor reporting/communications, cash distributions, and a proportionate share of the ongoing technological maintenance and upgrade of the MultiVestment platform. Additionally, each investment property may require asset management fees that are based on a percentage of annual revenue generated by a given property.
What happens after I invest?
An investment is not final until all legal documents are signed and funding has been contributed and cleared. When an investor makes their investment, the money is held securely at a US bank. Once the fundraising target is met and the real estate transaction is completed, the money is transferred for the sole purpose of the specific loan or specific property that is being invested in.
Do I sign legal documents electronically?
Yes. All legal documents are emailed to you and signed electronically through our website using Doc-U-Sign. This allows for more efficient and seamless transfer of documents between you and MultiVestment, while maintaining the authenticity and security of your information. Investments are finalized once proper legal documentation is accepted, funds are confirmed received, and we provide you with completed counterpart signatures.
How do I transfer funds over to MultiVestment?
Investment funds are transferred to MultiVestment using electronic wire transfer or by paper check.
When is my principal investment repaid?
The MultiVestment team predetermines an optimal holding period for each investment property. This period can be anywhere from a few months to several years. The holding period id designed to allow the property's asset manager to maximize the property's value to position it for resale. At the end of the holding period the property is sold and all investors are repaid their principal investment plus any profit proportionate to their share of ownership in the property.
Can I sell my shares in a property prior to the end of the holding period?
No. The real estate investments featured on MultiVestmet are private transactions in physical properties around the United States. The investments are not traded on public stock exchanges and cannot be sold or traded prior to the end of the determined holding period
How does MultiVestment structure investments?
Each investment property is organized under its own LLC. This provides investors (i.e. shareholders) with liability protection, shielding your personal assets from the investment.
Who makes operational decisions within each LLC?
Decisions in an LLC are governed by a document called an “operating agreement”. While every operating agreement is slightly different, they usually include an asset manager (who may also be a member) and limited members (i.e. investors/shareholders). The asset manager typically makes all of the day-to-day decisions and the limited members act as passive investors on the transaction. The asset manager can determine how much cash to distribute to the limited members versus how much to hold in reserve. While the asset manager is responsible for all decisions within each LLC, the operating agreement does provide provisions to remove this person in the event of gross negligence, fraud, or any other act that is detrimental to the investment property.
Does MultiVestment only invest in multifamily properties?
While we specialize in multifamily properties, we're not going to turn away from any real estate investment that throws-off a decent cash-on-cash return and upside potential for our investors. This may include single family homes, manufactured home parks, self-storage facilities, industrial properties, or office/retail opportunities.
At MultiVestment we take your privacy very seriously. Please know that we would never trade or sell your information to any third party. We also use advanced firewalls and Secure Socket Layer (SSL) technology to keep your personal information secure.
© 2019 MultiVestment, LLC. All Rights Reserved.
The Properties shown on this website may or may not be listed by MultiVestment. Some properties come from our extensive network of owners, developers and brokers. All information is believed to be accurate but is not guaranteed. MultiVestment has made every attempt to ensure the accuracy and reliability of the information provided on this website. However, the information is provided "as is" without warranty of any kind. MultiVestment does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained on this website. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All real estate securities involve risk and may result in partial or total loss of your investment.. While the data we use from third-parties is believed to be reliable, we cannot warranty that the accuracy or completeness of data provided by investors or other third parties is accurate. Neither MultiVestment nor any of its affiliates or employees provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Before investing in any security, prospective investors should consult with a tax and/or legal professional regarding the tax consequences based on their particular circumstances.