Do I have to be an accredited investor? If so, what are the qualifications to be an accredited investor?
Yes. The qualifications to be an accredited investor can be found in the following link: https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-bulletin-accredited-investors
Do you have a minimum investment size? If so, how much?
The minimum investment size varies deal by deal, however our average minimum investment size is $20,000
What happens if you do not raise all the funds for the investment project?
Any uncommitted capital will be covered by Alpha Capital Partners if not all funds are raised timely
Do you accept 1031 investors?
Yes, we do accept 1031 investors. We highly encourage 1031 investors to place a sizable equity amount with us due to the increased expenses associated with 1031 exchange investments
Does Alpha have a track record executing and managing such projects in the SBRE (small balance real estate space)?
We have a proven track record of closing transactions and returning distributions to partners. Alpha Capital Partner’s CEO and Sponsor Jide Famuagun has sponsored 30+ multi-family/student housing/healthcare real estate assets since 2012.
What is the difference between Class A Membership and Class B Membership within the partnership?
Class A Membership is LP Interest and Class B Membership is GP Interest
Can you explain the Waterfall structure utilized in these real estate projects?
The distribution waterfall is the order in which we make distributions to limited and general partners. A distribution waterfall specifies, for example, that an investor receives the initial investment plus a preferred return before the general partners can participate in the profits of the fund. This structure serves as an incentive for the GP to ensure that the investment does well – because the GP must return the initial investment of the LP plus a preferred return (called the Preferred) before sharing the Profit (which is a profit split between LP and GP)
Can I make this investment through a Trust?
Yes you can invest as a Trust, however the Trust must have more than $5M in assets
Do you have to remain in the investment throughout the duration of the hold period?
Yes, however under extraordinary circumstances we will allow investors to exit only after we have found a replacement investor to take your position.
What does Equity Multiple, IRR, and Value-Add mean?
Equity Multiple is defined as the total cash distributions received from an investment, divided by the total equity invested.
IRR is defined as the “Internal Rate of Return” and is the value of the sum of all future cash flows according to when they occur in time. An offering’s IRR is often used to compare investment options with different funding levels and/or time-horizons to find the best application of funds during a set period of time.
Value-Add is defined as property that exhibits management or operational problems, require physical improvement, and/or suffer from capital constraints.