• You must qualify as an accredited investor. These designations are to ensure that investors possess a certain level of financial and investing competence.
• An accredited investor is 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).
• To pass the income test, an individual must consistently meet the income thresholds for three consecutive years either individually or with their spouse. It is not possible to meet the threshold based on individual income for one year and then meet it based on joint income with a spouse for the following two years. However, there is an exception for individuals who get married during the three-year period. In this case, the individual can satisfy the threshold by using joint income for the years they were married and individual income for the other years.
• In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
  • any trust, with total assets in excess of $5 million, not formed to specifically 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.

The minimum investment amount is $50,000.

Investors are able to invest as individuals, or through an LLC, LP, or Trust. Another great option is to invest using your current IRA/401K money without penalty (through a third-party self-directed custodian company). 

If interested in investing with your IRA/401K, LLC, LP, or Trust, please contact us!

Multi-family real estate assets are widely regarded as a highly stable form of commercial real estate, mainly due to the consistent demand for multi-family housing and the diverse pool of tenants they attract. Additionally, these assets have short-term leases and the flexibility to increase rents as leases expire, making them more resilient to economic downturns.

Despite their reputation for stability, investing in multi-family properties always carries an element of risk. To mitigate such risks, we rely on established relationships with local brokers to acquire “off-market” and “below-market” deals. Furthermore, we partner with experienced property management firms that possess a thorough understanding of the local markets in which we invest. By optimizing income and reducing expenses, we strive to operate these properties as efficiently as possible.

It is essential to recognize that investing always carries some degree of uncertainty, but as sponsors, we personally invest our own capital into the deals, aligning our interests and objectives with those of the group’s investors.

It’s important to understand that every investment in a multi-family property is unique, and there are no guarantees regarding the return you will receive. Nonetheless, we aim to achieve a double-digit annual return on investment, which is derived from cash flow, value appreciation resulting from added improvements, and profits from selling the property.

Over the life of the investment, we target an Average Annual Return (AAR) of 12%-15%. We personally invest our own capital into these properties and are always looking for ways to enhance investor returns. Prior to each investment, we share with investors the business plan, anticipated returns, and equity structure.

Although each syndication deal may vary, our typical holding period for properties ranges between 3 to 7 years on average before we engage an exit strategy, such as a refinance or sale.

The investment strategy may be impacted by changes in economic conditions. To ensure transparency, investors will receive expected timelines for the investment upon property acquisition and throughout the investment’s lifespan. As sponsors, we strive to adhere to the original plan and implement the strategy that maximizes returns for all investors. The anticipated duration of our property holding period will be explicitly specified in the offering documents for each investment opportunity.

Simply put, no. Investments in commercial real estate are typically considered long-term and less liquid compared to traditional stocks and bonds.

Upon initial investment, investors will receive an estimated hold period for the investment, which will be updated regularly throughout the project’s life cycle. During the asset’s holding period, cash distributions are made from property cash flow. Investors may not receive their complete principal investment until the property is sold and they can cash out their share of the profits.

As a limited partner, you are entitled to your proportional share of the property’s depreciation and interest expense. In addition, we conduct a cost segregation study on acquired properties to identify assets that can be depreciated at an accelerated rate. This study identifies features such as appliances, parking lots, and HVAC systems that can be depreciated over a period as short as 5 years instead of the standard 27.5 years. This accelerated depreciation can result in tax-free income from the property.

The LLC will offer Class A Units to prospective investors in accordance with a Subscription Agreement and the economics and management of the LLC will be governed by an Amended and Restated Operating Agreement to which each investor will agree to be bound when they invests in the LLC.

Pilot Capital acts as the managing member and owner of Class B Units in the LLC (and has all voting rights), and the investors are the members and owners of Class A Units in the LLC. As a holder of Class A Units, you have an indirect economic interest in the single real property asset held by the LLC, and the number of Class A Units issued to you is based on the amount you invest and the value of the equity in the underlying property at the time of investment.

Your Schedule K-1 form can be downloaded directly from your investor portal. Simply sign in, go to the “My Portfolio” tab, and click on “Documents.” Scroll down to the Schedule K-1 field and click to view and download your K-1(s).

Our goal is to deliver annual K-1 statements to U.S. taxpayers in a prompt manner before April 15th.

Investors can access both current and previous K-1 statements by logging in to the Investor Portal and navigating to the “My Portfolio” tab and selecting “Documents”.

To invest in certain types of investments, such as Pilot Capital’s real estate syndication investment opportunities, SEC regulations require investors to be accredited. The SEC is responsible for overseeing most financial securities traded among the public, which provides a level of protection for inexperienced or uninformed investors. However, seasoned investors desire access to investment opportunities not directly regulated by the SEC. Consequently, the SEC established the accredited investor status to permit the general public to access new and inventive investment types.

Verification as an accredited investor indicates that you possess enough financial knowledge to make wise investment choices with your capital.

Unfortunately, no. In order to invest any amount in a Pilot Capital deal, you need to be verified as an accredited investor.

Pilot Capital charges a fee for overseeing all aspects of the real estate process, which can vary depending on the property type and LLC.

The range of services provided covers a broad spectrum, such as identifying and evaluating potential properties, forming and managing the LLC, acquiring and disposing of the property, arranging financing, managing escrow, obtaining necessary permits, supervising construction, designing the interior and architecture, stabilizing the property, managing the rental property management company, providing accounting services, and distributing returns to investors.

Each Pilot Capital syndication is unique and has its own specific business plan that dictates profit distributions.

Depending on the business plan, investors may receive quarterly distributions for each investment property, and Pilot Capital may also distribute extra capital at times depending on the performance of the properties and when they are sold or refinanced. It is important to review each syndication and the expected business plan.

Schedule a brief call with our team to discuss how we work and what to expect. After your call, we’ll get you added to our investor list and you’ll be the first to learn about new investment opportunities. 

Not ready for a call but want to keep in touch? Go ahead and sign up for our newsletter. Please note that all individuals must speak with our team before investing in any deal.