IMG’s Investor Relations team, led by industry expert Karlin Conklin, answers our top investor FAQs.
Every changing market cycle offers opportunities for those in a position to invest in real estate. Contact our Investor Relations team to learn how IMG’s apartment investments may benefit your financial goals.
“We believe that by choosing the right markets, and taking a long-term approach, multifamily assets can serve as a stabilizing force in an investor’s portfolio during a time of global turbulence.” -Neil Schimmel, IMG CEO
Syndication is the pooling together of investor equity. Think of it as a strength in numbers approach - "A group of us go in and buy something together."
Real estate syndication is an effective way for accredited investors to combine their financial resources and acquire multifamily properties much bigger than they could afford (or manage) on their own.
A real estate sponsor:
- guides all aspects of the acquisition process, including property due diligence and market research
- structures the capital stack, both investor equity and debt financing to acquire the property
- oversees operations as the property manager and/or the asset manager
- delivers asset performance reports to the investor group throughout the ownership period
- positions the property for an eventual sale
TIC stands for Tenancy in Common.
Tenancy is Common describes a particular type of real estate ownership. It means there are multiple investors (co-owners, or "tenants") who each own a percentage interest and hold title in a property.
Additional resources below:
- Learn More at IRS.gov
- What is the difference between a DST and TIC? - IMG's Karlin Conklin in GlobeSt
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.
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.
IMG has outstanding relationships with nationally recognized exchange accommodators that we can gladly refer you to as a resource. However, our company does not provide accommodator services. Our specialty is sourcing replacement properties for our clients’ 1031 exchanges.
Note: The IRS requires a neutral third party to be used for facilitating the 1031 exchange. This service is commonly known as a facilitator, qualified intermediary, or accommodator.
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.
Note that processing an investment through an IRA can take some time, so ideally we begin the process 4-6 weeks prior to our investment offering closing date.
How to Use a Self-Directed IRA to Invest in Real Estate Karlin Conklin, Kiplinger Contributor
“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.”
"When the economy is down and commercial businesses close, people still need places to live, that doesn’t change. Of course there are market swings in multifamily, but there’s generally a demand for it on some level or in some market."
Research shows that throughout modern history, housing assets as long-term investment vehicles have offered greater returns with less risk than traditional investments. Based on both substantial, in-depth data and personal investing experience, IMG believes in multifamily as the most compelling commercial real estate asset class.
IMG provides an opportunity for you to:
- invest in larger or more exclusive real estate properties with the potential for better returns
- enjoy predictable cash flow from real estate investments without the 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 real estate investors
We’re honored that 87% of our investors continue to reinvest their equity with us.
As an asset manager, IMG:
- supervises third-party property management
- conducts property budgets and reports
- negotiates contracts
- construction manages property renovations
- reports transparently to owners
Working directly with our third-party property managers, we can quickly pinpoint inefficiencies, identify actionable next steps and maximize investment dollars across our national portfolio of over 4,000 units. Operations and performance reports are delivered to our investors on a monthly and quarterly basis.
IMG has delivered to its partners an average 2.0x equity multiple and 26.5% IRR over 22 full-cycle investments since 2010.
Our investors expect us to deliver performance that matches projections, in line with our reputation of delivering predictable, risk-adjusted returns. We’re balancing our underwriting to account for high occupancy and big rent lifts that have defined the first half of 2021, but are remaining cautious as to how long this growth continues. Operators across the U.S. still face several unknowns as local economies recover from the historic Covid-19 crisis and eviction moratoriums sunset.
Each apartment asset in the IMG portfolio is aligned with our own investment goals—to enhance the resident experience plus deliver value and equity growth over the long term. IMG’s leaders confidently place their own personal equity into every IMG multifamily syndication.
After a property is acquired, IMG oversees the asset and makes improvements to the apartment community. These improvements compound to create better performance of the asset, and ultimately an improved experience for our residents. Our investors enjoy this "hands-off" ownership experience and consistent monthly income stream.
Detailed property performance reports, personal investment information and annual tax forms are all accessible through IMG’s online investor portal.
Throughout the entire ownership period, you will visit your IMG Investor Portal dashboard to access:
- Current performance metrics
- Monthly and quarterly investment reports
- Tax documents
- Distribution statements
- Special announcements
- Personal profile settings (e.g. change of address)
Note: The IMG Investor Portal, powered by IMS™, has been architected to prevent security breaches by using banking and military level encryption. It is hosted in the largest and most advanced cloud infrastructures, provided and used by other financial services companies such as Capital One, Pacific Life and Intuit.
As Sponsor, IMG simply facilitates the pooling of your investment with other passive investors’ funds to purchase a tangible commercial real estate asset.
First, you’ll review our offering documents. Then, you decide the amount you wish to invest. You may track the performance of your investment through the IMG Investor Portal dashboard.
There are two types of tax forms you may receive annually (by mid-March):
MEMBERS OF IMG-MANAGED LLCS
Members receive their investment’s Schedule K-1, which allocates partner’s share of income, deductions, credits, etc.
TENANTS IN COMMON
Co-owners receive Tax Compilations for Schedule E reporting.
Members and Tenants in Common can access/download IMG tax forms at our website:
1. Click Investor Login
2. At the top-left, click My Portfolio and select "Documents"
3. Select desired filter options, such as Type > Tax Documents or by Date Range.
Please notify us of any form corrections or assistance needed at firstname.lastname@example.org.
Our Tenancy in Common investment offerings are sold as 506(c) securities to accredited investors on a first-fund basis.
Accredited investors are welcome to create a new IMG Investor Portal account and complete an investment profile to prepare for participation in our next investment offering. New offering announcements will be sent to the email address you provide as your IMG Investor Portal account login.
To request IMG's multifamily investment offering announcements, email email@example.com or call Dave Mikkelsen at (747) 262-5600 ext. 652 for more information.
To ensure optimal receipt of our communications, add us to your trusted list of senders, contacts or address book:
Current IMG Investors: We send communications to you at the email address you provide as your IMG Investor Portal account login. Please ensure this is your primary email account. Updates will come from Karlin Conklin and David Mikkelsen. Add them to your contacts and designate them as "safe senders."