How Does It Work?

We create Multi-Family Apartment Investing Funds to make is easier for individual real estate investors to piggy back on others professional experience to get started on the road to apartment house investing faster.  Why take  the time of many years to learn how to buy and sell apartments when you can partner with others who do it for a living.

Prior to soliciting the first membership into a multi-family investing fund, Carolina Ridge Holdings sit down with an SEC attorney and asks them to create an investment fund that allows for the collection of investment dollars for the purpose of acquiring multi-family property. This fund is established and documented in a manner that is 100% compliant with all US law.

Carolina Ridge Holdings now opens the fund up to potential investors.  Anyone who is interested (after they have completed and signed the investor questionnaire).   The investor will receive an offering memorandum describing the fund and how it works, and among other documents, a Private Placement Memorandum that would satisfies the SEC’s requirements of complete disclosure.

All funds are to be held by an escrow agent. Carolina Ridge Holdings would never take control of the funds in case any investor wanted their money back before purchasing a property.  Everything is clearly stated in the Private Placement Memorandum.  So that’s all the legal stuff !

But what about buying the property?  Now this is where it gets fun.

The type of property that Carolina Ridge Holdings want to acquire will be clearly stipulated in the PPM. Carolina Ridge Holdings would be looking for a multi-family property that we could purchase for pennies on the dollar and that was either a B+ to an A class property. None of this no-money-down stuff. The number one criteria is that we could buy a great asset at a ridiculously low price. Why would we be able to do this? Because we are shopping with cash in our pocket; no schemes, no seller-carrybacks. Just cold hard cash.

Let’s say that 100 investors put up $35,000 apiece into the fund. When the fund closes, we could contact several lenders and say that we have $3,000,000 available to help their balance sheet and take some troubled assets off their books. The remaining $500,000 would be kept in reserve to run the property. I can assure you, there are many banks right now that have been told by the FDIC that they need to raise cash fast. These banks would be our first stop.

Our objective would be to buy good property, property that you would want to live in yourself, fix the problems with it and then sell it and do it again. Every step of the way, the investors would be involved and would see how the process works.

Common Questions

Q. How would I be paid?

It would be clearly stated in the Private Placement Memorandum. No secrets. No conference calls where questions could not be asked. Just a legitimate investment opportunity.  Isn’t that what you are looking for?  Incredible success!!

Q. “Isn’t real estate awfully risky?”

That’s like saying “Aren’t knives deadly?” Well, they can be…but they can also be life-savers. As with most things, it’s all in how you use the tool.

Make no mistake: Investing has risks. However, the trick is in how you choose those investments, and what kind of safety net (collateral) you build under them. That’s what we’re good at.

Q. “If this is such a good investment, why isn’t Wall Street advertising it on TV?”

As we mentioned before, these are not mass-produced investments. You get to know exactly which property you are making your loan on. In contrast, Wall Street wants to raise $50 million at a whack, stuffing people into generic investments that are as mixed together as hot dog meat. They have no interest in matching up individual lenders with single properties. So they tell you real estate is not allowed in your self-directed IRA, and they steer you in the direction of their fee-bloated mutual funds.

Q. “What if I want to get out of the investment earlier than I had planned?”

You should only be investing an amount of money that you can leave in the investment for the term. Unlike a money-market account, these investments are not able to be withdrawn on a moment’s notice. Of course, that’s one reason why you can expect far more profits than a money-market account will deliver.

Q. “What are the tax consequences of these investments?”

We’re not your tax adviser, and we urge you to speak to one before making any investment.

Q. “Do I invest in one property or several?”

You invest in one specific property at a time per the private placement memorandum. That’s the beauty of this type of investment: You know exactly where your money is going. Of course, if you decide you like this form of investing, there’s nothing to stop you from making multiple separate investments in our other multi-family unit funds.

Q. “Investing in only one property means I’m not diversified, right?”

You should already have a diversified portfolio of investments, and should only be thinking of adding multi-family investing to that portfolio. It will make your portfolio even more diversified. We certainly don’t suggest that you put all your investable assets into one basket. (or one stock or mutual fund, for that matter!).

Q. “Where do I go from here if I have questions, or just want to get started?”

We’re only a few mouse clicks away.   Just go to our  contact us form or download the investor questionnaire

Q. How Much is Required?

The minimum investment varies by project, but most, at present, require equity contributions between $25,000 and $100,000. Funds from Self-Directed IRAs, Trusts, and other sources are welcome.

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