If you are looking to get started with real estate investing or expand your portfolio to multifamily real estate, learn more about how Smartland private equity firm works closely with their investors to maximize return on investments.
About Smartland Private Equity Investing
Smartland is a fully-integrated real estate private equity firm founded in 2013 in Cleveland, OH but is currently headquartered in Miami, FL. As an ecosystem-based organization focused on multifamily housing in the South and Midwest, Smartland seeks hidden value that the surrounding community does not see to build wealth for its investors and partners.
Smartland private equity has five in-house divisions that give them an edge over other operators in the industry. These divisions include construction, architecture and design, asset management, investor relations, and marketing. This allows the company to prepare and organize its team to provide the needed services quickly and accurately, thus offering better value.
Smartland benefits from offering different types of multifamily properties Class A, Class B, and Class C, meaning there’s always something for every investor. The private equity firm currently has four primary partners that invest their personal funds in each project.
The company understands what’s relevant in today’s apartment market. For this reason, it is constantly seeking ways to bring value to investors by staying ahead of the competition, which in turn leads to long-term stable outsized returns for its investors.
What is Multifamily Real Estate Investing
Multifamily real estate, sometimes referred to as a multi-dwelling unit, refers to any residential property with more than one rental space under one roof. Each unit typically has its own living room, separate kitchen, and bathroom. Duplexes, triplexes, condominiums, and apartment complexes are typical examples of multifamily properties.
Investing in multifamily housing offers several advantages, making it the most preferred Investment to single-family housing among investors.
- Diversification: Investing in multifamily properties is an excellent way for investors to diversify their portfolios against volatility. Unlike the stock market, the real estate industry generally does not experience the daily ups and downs, making multifamily housing a great addition to anyone looking to lower risk.
- Bigger cash flow: A multifamily property presents an opportunity to generate more monthly income from one Investment. Plus, investors may decide to live in one unit and rent out the rest. Over time, it could help offset the cost of the mortgage and generate passive income.
- Ideal for property management: Since multifamily housing generates enough revenue, investors can hire a property manager who can oversee day-to-day operations on their behalf. This can be ideal for investors who want little to no involvement in their rental assets.
- Lower risk investment: multifamily housing is probably one of the safest rental investments. For one, the property holds a large pool of tenants, which means you get monthly income even if all the units aren’t occupied.
- Tax benefits: multifamily properties have significant tax advantages, making them a desirable investment among investors. Investors can depreciate their multifamily housing to offset a considerable chunk of the rental income collected each year.
How Smartland Works to Bring Value to Investors
You’re probably wondering what value Smartland Capital will bring you as an investor interested in multifamily property investing. Here are some of the ways Smartland brings value to its investors:
- Unveiling hidden value: Smartland is continually finding ways to uncover hidden value that others cannot see. While most of the firm’s properties are already on the market, seeking opportunities that other traditional investors do not see makes the private equity firm stay ahead of the competition. By doing this, it means greater outsized returns potential.
- Goes beyond basic renovation: Once Smartland uncovers hidden value, it goes beyond basic renovation by installing class A technology to attract residents. Typically the company looks for properties that require heavy lifting during renovation and refreshes each unit with new paint, flooring and fixtures, and high-end finishes and amenities.
- Offers better value: Since the company surpasses investors’ expectations by providing better value than its neighboring competitors, it charges higher rents and accepts longer leases. This translates to lower investor turnover and lease renewals and better returns in the long run.
- Return of capital: Smartland underwrites each property it buys and refinances within five years, returning all capital and still leaving investors with a share of the property. In other words, you earn passive income even though your Investment has been given back since you’re still in a real estate partnership with the firm.
- Hold for the long-term: Investing in rental properties is a long game that requires a long time horizon to reap generous returns, and that’s how Smartland does. The company buys, refinance, and holds properties for the long term to build wealth for its investors and partners.
Steps to Invest in Multifamily Real Estate with Smartland
The real estate industry is growing at a faster rate than ever before, and it’s bound to flourish in the coming years. If you want to get a slice of the pie, you may want to consider investing in a multifamily property. It is not only a great way to lower your investment portfolio risk but also generate additional income.
Smartland helps investors build wealth by finding opportunities in the industry that others do not see. Here’s a step-by-step guide on how to invest in multifamily housing with Smartland:
1. Be an Accredited Investor
You must be an accredited investor to invest in multifamily housing with Smartland. An accredited investor is an individual who meets certain income and net worth requirements based on the Securities Exchange Commission (SEC).
An accredited investor is anyone who meets at least one of the following:
- Have an annual income exceeding $200,000 (or $300,000 together with a spouse) in each of the previous two years
- Have over $1 million of net worth
- Holds in good standing a series 7 (the General Securities Representative license), series 65 (the Investment Adviser Representative license), or series 82 ( the Private Securities Offerings Representative license)
The reason why Smartland limits investments to accredited investors is to ensure that investors taking part in the private funds present a certain level of financial stability when accessing potential offerings.
2. Commit a Certain Amount of Capital Through a Subscription Agreement
If you‘re an accredited investor, the next step is devoting a set amount of capital through Smartland’s subscription agreement. Typically, the company will issue a capital call where investors are required to contribute all or a portion of the committed capital.
3. Hold for the Life of the Fund
Once you commit your investment capital, you need to wait until the end of the fund operation cycle, typically five years or longer. While you cannot redeem the committed amount of money, you can transfer ownership of the shares in the fund.
If you are interested in learning more about investing in multifamily real estate with Smartland, you can fill out a simple online form to request more information with no obligation.