Invest Your Hard Earned Money For Better Returns.

What We Do

 

We help busy professionals like yourself invest in hassle-free income producing real estate that ultimately creates more choices to live life on your own terms!

We select experienced operator partners that invest in select niches that have a history of strong cash flows and are projected to continue to perform well, such as:

  • Multi-family Apartments
  • Self Storage Units
  • Mobile Home Parks
  • Assisted Living

Our Model

 

  • Target investments that are expected to deliver attractive risk-adjusted returns over the life of the project.
  • Favor strong growth markets and areas in the path of progress.
  • Focus on value-add, repositioning, and rebranding projects to create attractive upsides and limit downside risk.
  • Target holding periods for investors of ~5 years with opportunities for refinancing cash-outs once significant value is created

WE PARTNER WITH LIKE-MINDED INDIVIDUALS

We leverage established relationships with industry experts to provide our clients access to exclusive investment opportunities typically only available to investors with significant capital contributions. Our mission is to offer institutional quality investments to ordinary investors. Because we believe a diverse portfolio is a strong portfolio, we don’t focus on a single industry or asset type. We offer a variety of investments to ordinary investors.

WE ARE FORCE MULTIPLIERS

We believe in bringing together individuals and groups, with a similar focus, for the greater benefit of all involved. We understand that, together, we are more powerful than as separate units. We pool capital for greater impact, opening avenues of investing unavailable to individuals.

WE TAKE A LONG-TERM VIEW

We are industry agnostic; allowing us observe market cycles and capitalize on a broad range of opportunities.
We take a long-term view toward investing. In contrast to traditional investments in the stock market, which are largely at the whim of quarterly earnings projections, we strive to build investment portfolios that can weather all market conditions.

INVESTMENT PROCESS

Real Estate Syndication: The Basics
Real estate syndication is an effective way for investors to pool their financial and intellectual resources to invest in properties and projects much bigger than they could afford or manage on their own. Although real estate syndication has been around for decades, until recently and before the advent of crowdfunding, syndicated investments were difficult for individual investors to access. Real estate crowdfunding gives access to the financial fundamentals of a deal and makes it easy for accredited investors to purchase shares without using the old model of country-club small talk and caddy fees.
Real Estate Syndication: Principles

How, exactly, does a syndicated deal work? Real estate syndication is a simple transaction between a Sponsor and a group of1 investors. You know how when two guys open up a bar together, one has more money to invest and the other has a lot of experience working in and managing bars? The guy with the bar experience (the Sponsor) finds a bar to open and arranges everything, while the other guy (the investor) simply invests his money. The guy with the bar experience naturally runs the bar, and, as a result, gets a paycheck for his work. Both get a share of the profits based on time and money invested.

The basics of real estate syndication aren’t all that different from two guys opening a bar together. As the manager and operator of the deal, the Sponsor invests the sweat equity, including scouting out the property, raising funds and acquiring and managing the investment property’s day-to-day operations, while the investors provide most of the financial equity. The Sponsor is usually responsible for investing anywhere from 5-20% of the total required equity capital, while investors put in between 80-95% of the total.

Syndication’s are simple to set up and come with built-in protections for all parties. They’re usually structured as a Limited Liability Company or a Limited Partnership with the Sponsor participating as the General Partner or Manager and the investors participating as limited partners or passive members. The rights of the Sponsor and Investors, including rights to distributions, voting rights, and the Sponsor’s rights to fees for managing the investment, are set forth in the LLC Operating Agreement or LP Partnership Agreement.

Real Estate Syndication: Profits

How, exactly, do investors make money when participating in a real estate syndication? Rental income and property appreciation. Rental income from a syndicated property is distributed to investors from the Sponsor on a monthly or quarterly basis according to preset terms. A property’s value usually appreciates over time, so investors can net higher rents and earn larger profits when the property is sold.

When and how does everyone get paid? Payment depends upon the time the investment needs to mature; some types of syndication’s are over within 6-12 months while others can take 7-10 years. Everyone who invests receives some share of the profits. Also, at the deal’s beginning, the Sponsor may earn an average acquisition fee of 1% (although it can be anywhere from .5 to 2% depending upon the transaction). Before a Sponsor shares in the profits for their work as manager and promoter, all investors receive what is called a ‘preferred return.’ The preferred return is a benchmark payment distributed to all investors that is usually about 5-10% annually of the initial money invested.

Real estate syndication’s are structured so that the sponsor is motivated to ensure the investment performs well for everyone. Let’s look at an example of a preferred return. If you’re a passive investor who invests 50k in a deal with a 10% preferred return, you could take home 5k each year once the property earns enough money to make payouts possible. After each investor receives a preferred return, the remaining money is distributed between the Sponsor and the investors based on the syndication’s profit split structure. If, for example, the profit split structure is 70/30 — investors net 70% of the profits after receiving their preferred returns and the sponsor nets 30% after the preferred return — here’s an example: after everyone receives their preferred return in a 70/30 deal, and there is 1 million remaining, the investors would receive 700k and the Sponsor would receive 300k.

PROJECTS

northern-cross

Northern Cross (Currently Funding)
398 Units | Fort Worth, TX

Ashcroft Capital (Sponsor) – Northern Cross is located in the highly desirable, affluent sub-market of North Fort Worth where rent growth is expected to be 5.9% in 2018, outperforming DFW as a whole of 3.7%. This property is a 2001 Institutional-quality asset that enjoys an exceptional location, solid amenities, and an interior renovation opportunity.
wurzbach

The Wurzbach Portfolio – Bitterwood Ranch – Fifth Avenue
A Value-Add Multifamily Investment

We are excited to announce an opportunity to partner with Thompson Investing and Wildhorn Capital on their newly awarded deal in San Antonio. This deal is a two-asset portfolio, being purchased from the same seller. Proven quality B value-add assets in A – in San Antonio NW desirable location.
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Key West Self Storage (Funded and closed)
505 Storage Units + Expansion Units | Key West, FL

Oakmead Investing (Sponsor) and Reliant (Operator) – Very rare Class A self storage facility located in desirable Key West, FL. Extremely high barrier to entry, undersupplied market with strong demand, and plans to expand facility by 50%, make this a truly unique and exciting opportunity.
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Manufactured Home Park Fund III (Currently Funding)
2,300 + Spaces | Phoenix, AZ

CoveMark (Sponsor) & Treehouse (Operator) – Exclusive opportunity to invest alongside a veteran operator in the high-demand manufactured housing community (“MHC”) industry. Our operating partner has extensive experience in repositioning non-performing assets. The investment strategy includes plans to expand an initial Phoenix metro portfolio and scale operations throughout the country.
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Hermosa Village
Units: 318 (Funded) | Leander, TX

Leander Texas, under construction. Capital City Ventures, (“CCV”) has formed a joint venture “Hermosa Village LLC” as a Sponsor to develop a Class A apartment community located in the central Texas City of Leander.
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Space Shop Self Storage
1,047 Units (Funded)| Atlanta, GA

Reliant (Sponsor) – Space Shop is a class A self storage facility located in Roswell, an affluent sub-market just outside Atlanta, Georgia. The location of this asset is less than 4 miles from the corporate office of Reliant affording the operator a proprietary knowledge of the market and customer base.

CONTACT US

Send a Message

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Contact Information

Oakmead Investments

Address: 7750 N MacArthur Blvd Ste 120-116, Irving, TX 75063
Phone: (888) 813-5432