Frequently asked Questions
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Browse our growing library of the most commonly asked questions from our multifamily investors.
What is Syndication?
Syndication in real estate means pooling funds and resources from multiple individual investors to increase purchasing power for acquiring assets.
Who can invest?
You can invest in two types of syndication offerings: 506b and 506c. 506b allows the sponsor to raise money from non-accredited investors who have a pre-existing relationship with the sponsor, such as family or friends. However, Syndication sponsors cannot advertise any specific investment offering to the public. 506c allows the sponsor to raise money from only accredited investors. Accredited investors are those who have a net worth of at least $1 million (excluding their primary residence) or an income of at least $200,000 for the last two years (or $300,000 with a spouse). Syndication sponsors can advertise specific deal offerings. So, if you want to invest in syndication, you need to either qualify as an accredited investor under 506c or have a close connection with the sponsor under 506b. This is to ensure that you have enough knowledge and experience to evaluate the risks and rewards of the investment.
How much do I need to invest?
Invest with as little as $35,000 in our real estate opportunities.
When do I get paid?
Cash flow is projected within the first quarter after acquisition is complete. Investors can expect to receive their first distribution 3-6 months after their investment.
How do I get paid?
Payments will be sent quarterly by the property management company either through checks or ACH deposits directly to your bank account. When the offering matures within 3 to 7 years, either through sale or refinancing, you typically receive all your money back from the offering along with any additional interest accrued through the investment.
How long is the average investment cycle?
Depending on the project, the investment cycle anticipates a 3 to 7-year holding period. So, we say a 5-year holding period on average.
What happens if I invest through a Self-Directed Retirement Account (SDIRA) or 401K?
You can hold various alternative investments, including real estate, in self-directed IRAs or 401K. It’s a way to diversify your investments for retirement beyond stocks and bonds since the 1970s.
How will I keep track of or stay up to date with my investment?
At AI Ventures, transparency is one of our core values. As an investor, you’ll have access to the cashflow portal where you can track paid & accrued distributions, access deal documents, and view quarterly reports and updates all on your own personalized dashboard.
What is a preferred investor return?
A preferred return is a way for investors to receive a guaranteed minimum return on their investment before the sponsor or general partner receives any profit. It is a way to ensure that investors receive a certain level of income from their investment, regardless of the performance of the property.
What happens if there’s a natural disaster?
Investing in real estate comes with risks, including natural disasters. So, we have an emergency response plan in place with proper insurance coverage to minimize the impact of natural disasters on your investments.
What is your track record?
We have a track record of 35 years of experience in real estate investing. We know how to identify the best deals and avoid the risks. Even during the down markets, we’ve managed to minimize our losses and maximize our returns.