Will I receive a K-1 for my investment each year? ![]() Please consult a qualified tax professional to determine the benefit this may have for you personally. See specific investments for their anticipated tax benefits. Depreciation is a tax benefit that can be used to reduce your taxes by allowing you to offset certain types of income. Investors will share in the annual “depreciation” (a tax benefit of holding real estate) generated by the property. See specific investments for their anticipated cash flow and profit expectation.ĭo investors receive tax benefits from their investment? Most of our investments are structured to pay between 6-8% cash flow annually, in addition to the profit share at sale. How much cash flow can I expect to receive? ![]() Since Ambitions Capital typically invests in value-add apartments, it often takes twelve months to stabilize and start distributions. The bulk of the profits (along with the return of the original investment) will come at the end of the investment, when the property is sold. Quarterly cash flow payments will be made based on the income being generated by the property and Most investments with Ambitions Capital will pay profits in two ways: Most of our investments are expected to span between 5 and 7 years, though market conditions can increase or decrease these investment periods.ĭo I receive regular payments from my investment? What is the typical length of an investment? There are third-party companies that have attorneys who can provide this letter. Investors may work with their own attorney or licensed CPA to provide this letter or The SEC requires that investors get a third-party letter of accreditation. How do I prove that I’m an accredited investor? Most of our investments have a minimum investment amount of between $50,000 and $100,000.Īre there any financial requirements as an investor?ĭepending on our offering, you either have to be an accredited investor, either alone or with a purchaser representative, and must meet the legal standard of having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment, as defined by the SEC.Īll of our investments are registered with the US Securities & Exchange Committee (SEC), and most require that investors are “accredited.” An accredited investor is someone with a minimum of $200,000 per year in income ($300,000 if married, filing taxes jointly with spouse) or a $1 million net worth, not including a personal residence. What is a minimum investment with Ambitions Capital? The Ambitions Capital model is to achieve minimums of an 8% preferred return and 2x Multiplier over a 5-7 year hold period. This helps to align sponsors with their investors best interest.Įxample 8% Pref: $100,000 invested X 8% = $8,000 returned annuallyĮquity Multiplier: a numerical expression of how much you have multiplied the cash you invested (over the life of the deal).Įxample 2x Multiplier: You invest $100,000 and over the 5 year period you collect a total of $200,000 (including distributions and equity earned on sale). Preferred Return(“pref”): is not a guarantee however, it is what an investor is projected to make before the general partners take any split of the cash flow. One thing to watch for in real estate offerings is Class C properties being marketed as Class B, which is far more common than it should be.īurke, Brian. Think of these as your Google or Uber stock when they started out, only with the advantage of brick-and-mortar security for your capital. There is always a new neighborhood on the fringes that’s the beneficiary of revitalization programs and dollars, and becomes the next trendy zone for artists and start-up businesses. Over the long term they can grow in appeal and value very well. This all translates into lower acquisition prices, although these opportunities can deliver the best cash flow and returns if managed well. ![]() Rents will be lower, and vacancy rates may be slightly higher. Buildings are normally at least thirty years old, and will generally benefit from significant updating and repairs. These properties are in less desirable areas than Class A and B. We partner with people who are looking for passive investments with strong returns, employing a “syndication” investment model.Īmbitions capital typical targets C Class properties which Brian Burke defines in the passage below:Ĭlass C properties. ![]() What type of investments does Ambitions Capital offer?Īmbitions Capital specializes in acquiring, repositioning and reselling apartment complexes in the SouthEast.
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