- Do I need to be an accredited investor to invest with you?
On a 504(c) offering, investors are required to be accredited ($200k in income for the last two years and $300k for married or a $1M net worth (excluding primary residence)). On a 504(b) offering we can accept up to 35 non-accredited investors. We use either option for our deals and this will be stated on the PPM.
- What is the minimum investment?
The minimum is $25,000. But most investors write bigger checks.
- Can I use my real estate investment with TPCG to reduce my tax liability? How does that work?
Yes. We perform cost segregation studies on our acquisitions to calculate the depreciation an investor can receive. You can use the depreciation to reduce your tax obligation. Please consult with your CPA on the mechanics of this.
- Can I split my investment across multiple deals?
Yes you can.
- What happens when TPCG does a re-financing on the deal? What does it mean for investors?
The refinancing is the first big liquidity event for investors. After we create value on the property, we seek to refinance the property to get a lower interest loan along with returning significant investor equity.
ACQUISITION AND INVESTMENT PROCESS:
- What is the investment criteria for TPCG?
We look for projects that can deliver an 18%+ IRR over a 5-year hold.
- How does TPCG de-risk deals?
We seek maintain full control of the execution of the business plan. Our team has a track record of executing and we know what challenges to expect with each acquisition. TPCG is vertically integrated and rarely uses outside contractors. This allows us to de-risk the deal.
- How much of an improvement do you see in occupancy rates after acquisition?
Once a property is stabilized, we expect occupancy to be 95-97%.
- What are the various touchpoints I should expect to have with TPCG after I invest?
Post-acquisition we share institutional grade financial reports with investors through our portal. We distribute dividends quarterly as well. In addition to that, we make monthly announcements from a corporate level of the happenings at TPCG!
- Who can I ask follow up questions?
Please email email@example.com for questions
- How does TPCG source deals?
We have several proprietary methods we use to find deals. We have an inhouse acquisitions team that sources deals off market as well as various other means to find the most attractive deals possible. Our biggest focus is finding off market deals because you aren’t dealing with competition and other buyers creating bidding wars.
- What are the short-term and long-term objectives when acquiring a property?
The short-term goal is execute on the value creation, distribute dividends to investors and get the refinancing as quickly as possible to return significant investor equity. The long-term goal is to sell the property at the desired return target.
- What is the typical hold period of an acquisition?
Typically we acquire a property and hold onto it for 5 years at which point the property is sold and sales profits are paid out. Around the 2 year mark, we will refinance the property and return a large portion of capital back
- Can I invest with an IRA or other retirement account?
Yes, you can invest with a self-directed IRA, trust, or other qualified retirement account as long as you have the ability to “self direct” your investments. For IRA account holders, there are several IRA custodians we can connect you with that will allow you to use these funds to invest in our projects
- Why Houston? Is TPCG looking at deals elsewhere?
Houston is one of the largest and most diverse cities in the country with a rapidly growing population. From 2018-2019, Texas accounted for nearly one-fourth of the entire nation’s population growth. And in Houston alone, an average of nearly 11,000 people per month have moved to the city since 2010 – nearly 135,000 people a year. With so much growth in Houston and ample supply of value add multifamily product, we have positioned ourselves in fantastic environment to capitalize on this demand. We do look at deals in other parts of the country that have similar demand drivers and favorable business environments as Houston.
In 2020, x number of people moved to Houston which represents y. The favorable business environment and no state income tax continue to buoy economic interest and drive Americans to the state.