FAQs

  • What is commercial multi-family real estate?

    Commercial multi-family real estate refers to properties with five or more residential units, such as apartment buildings, mixed-use properties, or condominium complexes, intended for investment purposes.

  • What are the benefits of investing in commercial multi-family real estate?

    Benefits include recurring rental income, potential for property appreciation, tax advantages (such as depreciation and deductions), inflation hedge, and portfolio diversification.

  • How does Thirteen:Eleven Capital assess market demand and rental trends in commercial multi-family properties?

    We analyze factors such as population growth, job opportunities, demographic shifts, supply and demand dynamics, rental vacancy rates, and rental rate trends in the market of interest.

  • What is a real estate syndication?

    A real estate syndication is a partnership structure where multiple investors pool their capital to invest in a commercial property. It allows investors to access larger properties and diversify risk.

  • How can I participate in a real estate syndication for commercial multi-family investments?

    You can participate by investing capital as a limited partner (LP) in a syndication managed by a general partner (GP), Thirteen:Eleven Capital, who oversees the investment and operations.

  • What is a preferred return in commercial multi-family syndications?

    A preferred return is a predetermined rate of return that limited partners receive before general partners or sponsors receive their share of profits, providing downside protection for investors.

  • How are distributions handled in commercial multi-family syndications?

    Distributions are typically made quarterly to investors based on property cash flow, with a portion reserved for capital improvements, reserves, and property management fees.

  • What is the minimum investment amount required to participate as an LP in a syndication?

    Minimum investment amounts can vary depending on the syndication structure and subject property, with some opportunities requiring as little as $50,000. Speak to a member of our team to help determine if you qualify.

  • What are Thirteen:Eleven Capital's typical equity splits and returns?

    Equity splits and return rates vary based off of the available offering. If you would like more details on a specific offering, please reach out to one of our team members to join our investor network.

  • What are value-add strategies in commercial multi-family investments?

    Value-add strategies involve making improvements to a property to increase its value and rental income, such as renovations, upgrades, rebranding, or optimizing operations.

  • Why would someone utilize a value-add strategy?

    Commercial property value is assessed based off of net operating income (NOI) and capitalization rates. NOI divided by the market capitalization rate equals property value. Value-add strategies rapidly increase NOI, leading to increased property value.

  • How does commercial multi-family real estate compare to other types of investments?

    Commercial multi-family real estate offers potential for stable cash flow, tax benefits, appreciation, diversification and control when compared to stocks, bonds, or single-family properties.

  • Can I invest in commercial multi-family properties through a self-directed IRA or 401(k)?

    Yes, it is possible to invest in commercial multi-family properties using a self-directed IRA or 401(k), allowing for tax-deferred or tax-free growth within the retirement account.

  • How can I diversify my investment portfolio with commercial multi-family properties?

    Diversification involves allocating capital across different asset classes, industries, geographic regions, and investment strategies, including commercial multi-family real estate for income and growth potential.

  • What are the typical holding periods for commercial multi-family investments?

    Holding periods can vary but are often between 5 to 10 years, depending on the investment strategy and market conditions.

  • What are the tax benefits of investing in commercial multi-family properties?

    Tax benefits can include depreciation deductions, cost segregation, capital gains tax advantages, and the ability to deduct expenses related to property management and maintenance.

  • How do commercial multi-family investments compare to other real estate asset classes?

    Commercial multi-family investments often offer higher cash flow potential and greater stability compared to other asset classes like retail or office properties, especially in times of economic uncertainty.

  • How does Thirteen:Eleven Capital manage risk and provide investor protection for LPs?

    We manage risk through due diligence, property selection, asset management strategies, insurance coverage, and adherence to regulatory requirements, all of which promotes investor protection.

  • How does Thirteen:Eleven Capital typically exit commercial multi-family investments?

    We exit investments through property sale or refinancing, depending on the investment structure and objectives.