Investments

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Are you interested in investing in Commercial Real Estate, but don’t know where to start? In addition to providing real estate services, we partner with clients to purchase true value-add properties. The bottom line in investing with us is- when you make money, we make money.

We work with clients to assess the upside potential of a property, assess investment goals, then determine how to get there. We help to analyze the risks, determine as many unknowns and red flags as possible, then compare to the benefits to calculate if a property is a good opportunity and use of our time. These assets are typically under market occupied or have below market rent due to deferred maintenance or lack of capital improvements to remain relevant.

“We have years/decades, of experience in appraisal, brokerage, asset management, renovation and construction feasibility analysis, income and expense analysis, and property management. In 2015, we began to put all our experience together by partnering with our investors to purchase properties for reposition.”

We also work for our investors by providing opportunities to re-position properties. We solicit multiple bids for repair, again weighing what has to be done versus what could be done to maximize rental rates, minimize expenses, and develop an implementation strategy while staying focused on the disposition goal or financing and holding. Simultaneously, we develop a marketing plan for the property, website and email, if needed, social media campaign, and bring an institutional level of sophistication to the operations. We utilize maintenance contractors from our partners’ properties and our other properties to achieve the best pricing and best craftsmanship, taking advantage of the economies to scale.

Please add yourself to our Investor Directory by Clicking Here to learn more about the projects we are currently working on, some of the ones we have completed, and opportunities we are looking for. We look forward to speaking with you.

Here are a couple of the properties we have invested in over the last couple years:

FREQUENTLY ASKED QUESTIONS

Why invest in Commercial Real Estate?

There are multiple articles about the benefits of investing in commercial real estate. Here is one from Forbes and here is a great article from Fortune Builders. Investing in anything comes with an associated amount of risk. Real Estate is no different. However, Real Estate investing can provide benefits that other investments may not be able to, including:

  • Income Stream; Most Real Estate investments produce regular income streams paid through distributions.
  • Appreciation; Over time, a property can not only pay out through distributions, but it also can grow in value. Historically, Real Estate has appreciated at or above other investment types.
  • Potential tax benefits through depreciation.
  • An actual hard asset, not paper or virtual money in cyber-space.
  • Ability to be leveraged through a low-interest loan, multiplying the potential of the equity.
  • Hedge against inflation; Rents and real estate pricing typically increases with similar economic triggers as inflation.
What is the minimum investment amount?

The minimum investment is never below $25,000. However, minimum investments vary for each deal and are based on the total raised. Most deals we look at have a minimum investment of $50,000 to $100,000+.

How do I know if I am a Sophisticated or an Accredited Investor?

This document has the official information from the Securities and Exchange Commission.

The short, unofficial answer is that a Sophisticated Investor is someone that has superior knowledge of business and financial matters. This could include a business owner, company chief executive, accountant, banker, etc. An Accredited Investor is someone that has earned $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.

Are there Tax Advantages?

There may be tax advantages to investing in real estate through depreciation. The IRS allows residential real estate buildings to be depreciated over 27.5 years and commercial buildings over 39 years. There may also be a taxable loss in the first year, if the property is being renovated. Each investor will receive a K-1 statement. Your CPA can better answer if you specifically would receive tax benefits.

When are distributions?

Distributions are generally made after each quarter. This varies based on the investment strategy.

Does the Deal Sponsor invest funds in the property?

Yes, when we are the Deal Sponsor, we invest in the property. Generally, the Deal Sponsor puts in equity through the form of escrow money Day 1. Much of our investment is through our time and expertise, but we also invest our own funds.

Can I invest with IRA funds or through my own entity?

Yes, self-directed IRA funds or funds from your entity (LLC, LP, etc.) can be included if the individuals meet the requirements of being an Accredited Investor.

Please Contact Us with any more questions, sign up in our Investor Directory, and check out some of our projects on our Investments page. We look forward to speaking with you.

Disclosure

ANCRE Group, nor their officers, employees, or agents makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Addressees should make their own projections and form their own conclusions without reliance upon the material provided by the disclosing party and conduct their own due diligence.