I’m ready to invest. How do I get started?
Please call Dave Mikkelsen, IMG Investor Relations Manager, at (747) 262-5600 ext. 652 for a brief consultation. Email firstname.lastname@example.org to request IMG’s new apartment investment offering announcements and updates.
What is a syndication?
Syndication is the pooling together of investor equity. Real estate syndication is an effective way for investors to pool their financial resources and acquire commercial real estate properties much bigger than they could afford (or manage) on their own. Think of it as a “strength in numbers” approach.
What does a real estate sponsor do?
A real estate sponsor:
- sources the investment property;
- assembles the investor capital and financing to acquire the property;
- oversees all aspects of due diligence on behalf of the investor group;
- oversees operations as the property manager and/or the asset manager;
- manages investor distribution payments to the investor group;
- delivers asset performance reports to the investor group throughout the ownership period;
- positions the property for an eventual sale.
As sponsor (or “syndicator”), IMG works with groups from two to more than 100 investing entities to purchase large apartment communities (typically over 150 units or $25-$60M+ in value).
What does “TIC” stand for?
“TIC” stands for Tenancy in common. This is the type of real estate ownership structure that IMG specializes in. It means there are multiple investors who each own a percentage interest and hold title in the investment property. Whether the TIC ownership group is comprised of a few or a dozen individuals and/or entities, each owns a fractional piece of the real estate.
Why should I invest in an IMG-sponsored real estate syndication?
IMG provides an opportunity for you to:
- Invest in larger or more exclusive properties with the potential for better returns
- Enjoy the advantages of commercial real estate investing without the daily hassles of hands-on management
- Understand your investment’s performance through transparent and open communication
- Utilize favorable tax treatment associated with real estate ownership for deferral of capital gains and income sheltering
- Grow equity over the long term in well-located apartment properties, known to provide the best risk-adjusted returns in the industry
- Benefit from connections within a group of successful investors and nationally known industry experts
We’re honored that 87% of our investors continue to reinvest their equity with us.
“We were tired of the landlord business. By investing with IMG, we kept real estate in our portfolio but became passive owners- keeping the tax benefits, cash flow and appreciation we’re used to.” —S.B., Investor, Portland OR
“We’ve invested with IMG across more than a dozen deals the last several years. They’ve been a trusted partner and delivered returns.” —R.R., Investor, Los Angeles CA
How do I make an investment?
Accredited investors may invest as a:
- Limited Partner (minimum investment: $25,000) in the form of a trust, an entity (LLC), a self-directed IRA, or as an individual
- Tenant in Common (minimum investment: $750,000) using cash or 1031 exchange proceeds
Limited Partner (“LP” or “member”) investors can electronically sign investment documents through our secure, online investment portal. Tenants in common (“TIC”) investors work directly with us to electronically sign investment, loan underwriting, and 1031 exchange documents.
Note: Our 506(c) investment offerings are available only to verified accredited investors on a first-come basis.
What is an “accredited” investor?
Under the federal securities laws, only accredited investors may participate in 506(c) securities offerings. This is to ensure that all participants are financially sophisticated and able to sustain the potential risk of loss.
Per the SEC, an accredited investor, in the context of a natural person, includes anyone who:
- earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
- has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
There are other categories of accredited investors, including the following, which may be relevant to you:
- any trust, with total assets in excess of $5 million, not formed specifically to purchase the subject securities, whose purchase is directed by a sophisticated person, or
- any entity in which all of the equity owners are accredited investors.
Please review this SEC Investor Bulletin for more information on qualifying methods and net worth calculation.
What kind of real estate does IMG buy?
- Real Estate Type: Commercial/Multifamily
- Property Size: 150 – 350+ Units
- Class: B- to A
- Location: B to A-
- Value: $25 Million to $60 Million+
What is IMG’s typical deal structure?
We structure ownership as either a Tenancy in Common, or a Joint Venture with the majority of equity coming from an institutional partner. Our multifamily real estate offerings are sold as 506(c) securities to accredited investors.
Ownership type: Tenancy in Common
Targeted Returns with a 5-year Hold:
•Average annual cash yield: 6.5% – 8.0%
•Equity multiple: 1.85x – 2.0x
•IRR: 13.5% – 15.0%
Ownership type: Joint Venture
Hold Period: 3-5 years
Targeted Returns with a 5-year Hold:
•Average annual cash yield: 5.0% – 6.0%
•Equity multiple: 2.0-2.5x
•IRR: 14.0% – 16.0%
How does IMG select investment markets?
IMG invests in select U.S. markets gaining momentum in:
- Population growth
- Job gains
- Increasing rent trends
- Healthy local/regional economic climate
- Infrastructure investment
- Attractive lifestyle factors (shopping, dining, entertainment, recreation)
These features, known as a market’s “intrinsic values”, are just one of three critical components to our investment success. IMG buys Intrinsic value at an attractive Price per pound in dynamic locations that are Affordable for renters. This nationally recognized IPA™ acquisition strategy has delivered high returns on a risk-adjusted basis over short periods of time to our investors.
“Apartments are still the most compelling product type in commercial real estate. The key reason for this is simple, if trite: People always need a place to live.” – Forbes
Throughout modern history, research shows that multifamily assets as long-term investment vehicles have offered greater returns with less risk than traditional investments. Based on this substantial data, IMG believes that multifamily is the most compelling commercial real estate asset class.
In-Depth Study: Housing named best performing investment 1870-2015
How have your past investments performed?
IMG has delivered to its partners an average 2.15x equity multiple and 28.3% IRR over 20 full-cycle investments since 2010.
Does IMG co-invest in each property?
Each multifamily property that we acquire is aligned with our own investment goals— thoughtfully and carefully selected to deliver ongoing cash flow, equity growth and tax-saving benefits over the long-term. IMG principals confidently place our own personal equity into every investment property we acquire.
If I’m a direct owner, will I have to manage anything at the property level?
After an apartment asset is acquired, IMG oversees the asset and makes improvements to add value to the apartment community. Our investors enjoy this “hands-off” ownership experience. Detailed property performance reports, personal investment information and annual tax forms are all accessible through the IMG online investor portal.
What are the tax advantages of an IMG-sponsored multifamily real estate syndication?
The US tax code gives real estate investment and ownership favorable treatment from depreciation, interest and expense write-offs, to capital gains deferral through the 1031 exchange process.
The term 1031 Exchange is defined in IRC Code Section 1031 of the IRS Code. To put it simply, this strategy allows an investor to “defer” paying capital gains taxes on an investment property when it is sold, as long another “like-kind property” is purchased with the profit gained by the sale of the first property within very strict timelines.
The proceeds from the sale must go through the hands of a qualified intermediary, commonly known as an exchange accommodator. Otherwise, your sale proceeds will become taxable. Any cash proceeds retained from the sale are taxable.
Is IMG an exchange accommodator?
The IRS requires a neutral third party to be used for facilitating the 1031 exchange— this service is commonly known as a “facilitator” or “accommodator“.
IMG has outstanding relationships with nationally recognized exchange accommodators that we can gladly refer as a resource. However, IMG does not provide accommodator services. Our specialty is sourcing replacement properties for our clients’ 1031 exchanges.
Is it possible to use my retirement account to invest in real estate?
A self-directed IRA or an IRA LLC (known as a “checkbook” IRA) allows you the freedom to invest in real estate including single-family and multifamily (commercial) property. This strategy for equity growth continues to grow in popularity. There are several custodians and services to choose from including IRA Services, Provident, and IRA Advantage.
Once your IRA account is established, IMG will work with you and your IRA custodian to place the investment. Note that processing an investment through an IRA can take some time, so ideally we begin the process 4-6 weeks prior to the offering closing date.
Learn More: How to Use a Self-Directed IRA to Invest in Real Estate Karlin Conklin, Kiplinger Contributor
How will I get updates on my investment property’s performance?
IMG’s online investor portal features a personal portfolio dashboard, asset reporting data and distributions calculations. We post operating statements monthly and comprehensive reports quarterly throughout the entire ownership period.
In addition, our Investor Relations team hosts live webcasts every quarter for high-level property performance reviews featuring an investor Q&A forum.
How many commercial real estate properties do you acquire each year?
We review, underwrite and tour hundreds of multifamily properties in emerging U.S. markets each year, and only acquire those that hit our signature IPA™ targets.
Note: Tenancy in common offerings are sold as 506(c) securities to accredited investors on a first-come basis. Contact Dave Mikkelsen at email@example.com to request status updates when new offerings become available.
How can I be the first to know about a new IMG investment offering?
Email firstname.lastname@example.org or call Dave Mikkelsen at (747) 262-5600 ext. 652 to request email notifications when new offerings become available.
Note: Our tenancy in common offerings are sold as 506(c) securities to accredited investors on a first-come basis.
Our firm’s principals regularly contribute personal finance insights and market information for national publications. All media inquiries, panelist requests and speaking engagements, please contact John Chilson at email@example.com.