FAQ

A temporary alliance formed to achieve a common objective. In this instance, it is a group of investors pooling funds together to purchase real estate, like an apartment community, that would be difficult or impossible for any one individual to do on their own.

You're considered an accredited investor if you meet 1 of the following 2 criteria: 1. have a net worth over $1,000,000 (with or without your spouse, not including the equity in your personal home) or 2. have an individual income of over $200,000 (or over $300,000 joint income) and expect to meet or exceed that income in the current year. And no, you do not need to be an accredited investor to partner with True Freedom Capital.

Everyone's favorite answer, it depends. The minimum investment will vary by deal and the capital required to purchase the asset. We strive to make investments available to everyone and as affordable as possible. That said, we are limited on the number of sophisticated investors we can include. Typical investment amounts range from $25,000 to $100,000.

Exact percentages will vary between investments. You will receive the same TYPES of returns across the board. Cash on cash returns are paid out periodically throughout the lifecycle of each investment. You will also receive a portion of the profits from any refinance that occurs and sale of the asset at the end of the project.

While the investment period is deal dependent, investors should plan to leave their money in an investment for a minimum of 5 years. There may be the option to sell your shares prior to the 5 year mark with prior approval of the general partners. While no promises can be made, we understand that life happens, situations and needs change and we will do our best to accomodate if the need arises.

Check with your 401K provider, if you're able to move some of those funds to a Self-Directed IRA (SDIRA), Self-Directed 401K or eQRP, you'll be able to use it. We've patnered with Advanta IRA to make it easier for you to set up an SDIRA, though you are absolutely free to choose your own provider. Please click HERE to visit their site and they can walk you through getting your SDIRA set up. We do not receive any compensation by referring you to Advanta IRA, we only recommend them due to the ease of setup and quality of service. We've vetted over 10 companies to arrive at Advanta IRA and want to ensure you have the easiest experience possible.

They are pretty sweet. That said, a syndication is an investment, so it carries risks, which will be disclosed as part of the offering through the private placement memorandum (PPM) that each investor will receive. Each investor's risk is limited to the amount of capital invested. There are risks that market conditions change or a force majeure event occurs. This is why it's very important to us to be conservative in underwriting each deal. Unforseen things can go wrong, but we will continue to communicate the status of the property, challeneges, wins and what we are doing to protect your capital, first and foremost, and also grow it to align to our project objectives. Transparency and communication are vitally important to us.

You must be part of our investor network and have had an intro call with Chris or Joe. To get started, please sign up HERE.

Sometimes referred to as a "pref," it describes the 100% claim on profits given to limited partner passive investors in a project. They are the first to receive returns up to a certain percentage, generally 0 to 8 percent annually. Once the returns reach this percentage, the excess profits are distributed among all investors as outlined in the operating agreement of the entity.

Cash on cash return measures the amount of money you put in your pocket (before taxes) based on the amount you've invested. If you invest $100,000 cash and you receive $10,000 that year in distributions - you cash on cash return was 10%. This is a levered (after debt/mortgage) metric calculated by... (Annual Pre-Tax Cash Flow) / (Total Cash Invested) = Cash on Cash Return %.

The equity multiple is the ratio of cash received vs cash invested, over the life of the investment. An equity multiple of 2.0x or 2:1 means your are getting $2 for every $1 you invested. If you invest $100,000 and over the life of the investment you receive $175,000 total, your equity multiple was 1.75x.

To put it simply, a cap rate is the rate of return you would receive if you operated the property at the current financials and purchased using all cash (unlevered). Cap rate is typically correlated with risk, with Class A and new construction demanding lower cap rates, and Class D and distressed properties demanding higher cap rates. The calculation is Net Operating Income (NOI) divided by Sales Price.