Private Equity Investments (Equity Partnerships): The Vehicle of Choice
Large to mid sized multifamily investments are traditionally owned by only the largest institutional investors such as mutual funds, insurance companies, or large pension plans for their stability and investment power.
Private equity investments allow the qualified indivudual investor the opportunity to buy a passive ownership stake and participate in these same type of large revenue generating investments. Private Equity Investments or "group investments" allow the individual investor the ability to experience the same buying power, leverage, and enjoy the many additional benefits the large institutional investors enjoy along side other like-minded and sophistocated investor partners.
As a partial owner, the private equity investment allows the investor to participate in all the benefits of owning apartment communities without the day-to-day management obligations. These benefits include monthly cash-flow, potential income sheltering through depreciation, tax benefits, leverage, principal pay-down, and appreciation.
Private Equity Investments bring the same power, benefits, and leverage the large institutional investor deploy to the individual investor.
We carefully prequalify, scrutinize and screen every potential investment before making offers to potential investors via a Private Placement Memorandum. Our investments are not for everyone and are not offered to the general public. If you would like to get qualified to see potential opportunities, you must complete the Investor Qualification Form or contact our office.
Experienced Management Partner
Cullor Asset Management, LLC was formed by Gary Cullor and Spencer Cullor. Together they have more than 50 years of combined experience in business development, business ownership, management, acquisitions, and dispositions. Together they also have over 35 years of combined real estate experience in acquisition, development, construction, property management, asset management and investing including retail, office, industrial, multifamily and single family homes.
A property's revenue is derived from rents paid for the use of leased properties. A strong property management team will focus on attracting only the most suitable occupants to the properties and bind them to carefully structured lease agreements, contracted for long periods of time with staggered renewal dates. These practices in turn generate consistent cash flows for our Investor Partners.
By making improvements, the property values are increased through the repositioning process. By increasing rents or occupancy rates, higher levels of stable monthly distributions are generated. When properties are refinanced or sold, the proceeds can be used to acquire additional properties to further increase value and wealth preservation.
Steady Cash Flow
One of the greatest advantages of real estate investments is they generate steady, strong, partly tax-sheltered cash flow and provide distributions. With the other advantages real estate has to offer, few other forms of investments can be bought with the same kind of steady cash flow return combined with the appreciation of the investment over time.
Distributions to Investor Partners are treated more favorably than other investments from a tax perspective because a significant portion of distributions are not considered income. This is due to the flow through of expenses and depreciation. Furthermore, the capital appreciation is deferred from taxation until the assets are sold.
A property's combination of stable revenue (from rents), capital gains (resulting from increased property values), principal paydown (from renters paying down loans) and tax savings (thanks to the investment's special flow-through structure) may provide returns.
Hedge Against Inflation
Not withstanding cyclical variations due to supply and demand imbalances, in the long run, rents, values, and the replacement cost of real estate improvements rise in line with inflation. Multifamily assets also tend to have shorter term leases that can adjust to current market conditions much faster than other investments. This makes real estate investing a particularly effective hedge against inflation, and should be a key component in any well-diversified investment portfolio.
Cullor Properties makes all due diligence, monthly and yearly financial statements and other documents available to our investors during the course of the investment. We provide investor conference calls, investor website access, management updates, site visit reports, monthly financial updates and an annual report for tax purposes to keep our investors informed of what is happening with their investment dollars.
Real Estate Ownership
Investors desiring a regular income, with an optimal balance between risk and reward, generally will prefer real estate consisting of land, buildings and fixed equipment. Moreover, the supply of land is limited and of fairly stable (though generally increasing) value. Real estate, therefore, is widely considered the best ultimate security and a solid basis for building lasting wealth.
Not many investors can acquire apartments on their own. The major advantage of Group Investments is that it allows an individual investor to join with others in acquiring a large and high quality revenue generating investment. The combined strength of the properties in the pool provides a permanent stream of steady income that is virtually unaffected by variances in individual property vacancy rates or individual market fluctuations.
It is well known that an investment's staying power is the single most important factor to building wealth. Yet the need for operating cash is often overlooked when inexperienced investors buy real estate. Group investments assure that sufficient capital is available to give the investment the ability to withstand economic downturns or temporary shortfalls.
Ownership of real estate by way of a private group investment does more than bring stability to an investor's portfolio. It also relieves stress! Because the returns are based on the properties' actual revenues, rather than the ups and downs of the speculative markets, members in a private syndication don't have to check their computer or the daily paper to see how their investments are doing.
Registered Retirement Savings Plan Eligibility
Private equity investments are 100% eligible as US content for registered portfolios that allow you to put the stabilizing, revenue-generating, and appreciating benefits of real estate ownership to work for you through a SELF-DIRECTED IRA. A self-directed IRA is no different from any other IRA. "Self-directed" means that you choose the investments thereby providing you with the benefit of more choices and more flexibility for your retirement savings.
THIS IS NOT AN OFFER TO SELL SECURITIES. ANY PERSON, ENTITY, OR ORGANIZATION MUST FIRST BE QUALIFIED BY THE COMPANY AND READ ALL OF THE OFFERING DOCUMENTS AND ATTEST TO READING AND FULLY UNDERSTANDING SUCH DOCUMENTS. APARTMENTVESTORS LLC AND ITS AFFILIATES ARE NOT LICENSED SECURITIES DEALERS OR BROKERS AND AS SUCH, DO NOT HOLD THEMSELVES TO BE. THIS WEBSITE SHOULD BE CONSTRUED AS INFORMATIONAL AND NOT AS AN ADVERTISEMENT SOLICITING FOR ANY PARTICULAR PURPOSE. ALL SECURITIES HEREIN DISCUSSED HAVE NOT BEEN REGISTERED OR APPROVED BY ANY SECURITIES REGULATORY AGENCY IN ACCORDANCE WITH THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS.