faqs

Non-Accredited Investors: In this context, a "non-accredited" or sophisticated person means that the person, company, or private fund offering the securities reasonably believes that the investor has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

Accredited Investors: An accredited investor, in the context of a natural person, includes anyone who meets one of the following criteria:

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).

Entities such as banks, partnerships, corporations, nonprofits, and trusts may also qualify as accredited investors. Please contact Four Palms Capital to determine your eligibility.

The minimum amount to invest in a project with Four Palms Capital is $20,000. If you're interested in exploring how to invest using your current IRA/401K funds without penalty, we recommend consulting with a tax specialist or accountant who can provide guidance on utilizing self-directed custodian companies. For more details, we can provide resources to help you understand the options available.

Yes, investors are often able to invest through their traditional self-directed IRAs, LLCs, LPs, or Trusts. However, it's important to consult with a tax specialist or accountant to understand the specific implications and requirements associated with these investment vehicles. They can provide expert guidance on how this works and help you select a custodian that aligns with your investment goals.

While multi-family properties are generally considered stable and safe among various investment asset classes, there are always risks associated with any investment. At Four Palms Capital, we mitigate risks by leveraging established relationships with local brokers to obtain "off-market" and "below-market" deals. We also partner with local, experienced property management companies that have in-depth knowledge of the neighborhood markets we invest in, ensuring efficient operation of the properties. However, it's important to note that investing carries inherent risks even with the steps the Four Palms Capital team takes to minimize risk. 

Investors can typically expect to commit their capital to an 18-month to 7-year hold period before employing an exit strategy, such as a refinance or sale. The specific length of the investment may vary based on the business plan for each property and can be affected by economic conditions. Four Palms Capital will provide projected timelines upon acquisition of the property and throughout the investment period. However, we recommend consulting with a financial advisor or professional to determine the investment horizon that aligns with your financial goals and objectives.

Every multi-family property investment is unique, and there are no guarantees on the amount of return on investment. However, at Four Palms Capital, we strive to achieve competitive returns for our investors. This typically includes cash flow, forced appreciation through value-added strategies, and profits from the disposition of the property. We target a 12%-15%+ Internal Rate of Return (IRR) over the life of the investment and a 6% annual preferred return. It's important to note that these returns are projections and may vary based on various factors. 

Investors can expect to receive distributions according to the specific business plan for each investment property. At Four Palms Capital, we aim to provide quarterly distributions, depending on the performance of the properties. Additionally, there may be instances where additional capital distributions are made when properties are sold or refinanced. The timing and frequency of distributions may vary and are subject to the individual investment and market conditions.

No, commercial real estate investments are generally considered longer-term investments compared to liquid stocks and bonds. At Four Palms Capital, we provide projected hold period timelines from the beginning of the investment and consistently communicate updates throughout the life of the project. Cash distributions are typically generated through property cash flow during the holding period. It's important to note that investors may not receive their full principal investment back until the property sells and investors realize profits upon disposition. We make no guarantees of investor returns.