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
Multifamily Emerges from the Pandemic with a Bang
GlobeSt Real Estate Forum
featuring Neil Schimmel
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.
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.
The U.S. Securities and Exchange Commission defines an “accredited investor” as:
- an individual with a net worth or joint net worth with a spouse or spousal equivalent of at least $1 million, not including the value of his or her primary residence
- an individual with income exceeding $200,000 in each of the two most recent calendar years or joint income with a spouse or spousal equivalent exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year
- an enterprise in which all the equity owners are accredited investors
- a trust with assets exceeding $5 million, not formed only to acquire the securities offered, and whose purchases are directed by a person who meets 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
- an individual holding in good standing any of the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82)
- a knowledgeable employee, as defined in rule 3c-5(a)(4) under the Investment Company Act, of the issuer of securities where that issuer is a 3(c)(1) or 3(c)(7) private fund or
- an SEC-registered broker-dealer, SEC- or state-registered investment adviser, or exempt reporting adviser
- an employee benefit plan (within the meaning of the Employee Retirement Income Security Act) if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million
- a tax-exempt charitable organization, corporation, limited liability corporation, or partnership with assets in excess of $5 million
- a director, executive officer, or general partner of the company selling the securities, or any director, executive officer, or general partner of a general partner of that company
- a family office and its family clients if the family office has assets under management in excess of $5 million and whose prospective investments are directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment
- a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5 million
- a bank, savings and loan association, insurance company, registered investment company, business development company, or small business investment company or rural business investment company
Please visit SEC.gov for more information on qualifying methods and net worth calculation.
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
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" comes from Section 1031 of the U.S. Internal Revenue Code. To put it simply, it allows an investor to “defer” paying capital gains taxes on an investment property when it is sold, as long as 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.
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
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 research data and personal investing experience, IMG believes in multifamily as the most compelling commercial real estate asset class:
- Recognized hedge against inflation
- Competitive returns vs. other asset classes
- Favorable supply/demand balance
“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."
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 over 80% of our investors choose 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 on a monthly and quarterly basis
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 4,500 units.
IMG has delivered to its partners an average 2.0x equity multiple and 26.5% IRR over 25 full-cycle investments since 2010.
Operators across the U.S. still face several unknowns as local economies recover from the historic Covid-19 crisis.
Our investors expect us to deliver performance that matches projections, in line with our reputation of delivering predictable, risk-adjusted returns. The full article below, written by IMG's Karlin Conklin, provides an in-depth viewpoint.
Now is the time for down-to-earth expectations
By: Karlin Conklin
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 full life cycle of your investment, 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 RealPage, 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. To manage where your distributions are received, visit your investor portal Manage Profiles > Payment Methods section.
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.
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.
Accredited investors are encouraged to create or update your IMG Investor Portal account and complete an investment profile to prepare for participation in our next investment offering. Offering announcements will be sent to the email address you provide as your IMG Investor Portal account login.
To ensure delivery of our email communications, please add David.Mikkelsen@imgre.com and Karlin.Conklin@imgre.com in your email program contacts as Safe Senders.
Our Tenancy in Common investment offerings are sold as 506(c) securities to accredited investors on a first-fund basis.
To ensure optimal receipt of our communications, add us to your trusted list of senders, contacts or address book:
- Dave Mikkelsen - firstname.lastname@example.org
- Karlin Conklin - email@example.com
Communications are sent 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 Dave Mikkelsen. Add them to your contacts and designate them as "safe senders."
If you have previously Unsubscribed from our email list, and you wish to re-subscribe, please email your Re-subscription Request to firstname.lastname@example.org.