Question 1

What is the typical minimum to invest in a deal?

Accepted Answer

$50,000 minimum is typically the minimum for most multifamily offerings. This amount is subject to change based on asset size and specific deal requirements.

Question 2

What is the difference between a sophisticated and an accredited investor?

Accepted Answer

A sophisticated investor is defined as investor with sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment that is not accredited.

The term accredited investor is used by the Securities and Exchange Commission (SEC) under Regulation D to refer to investors who financially have a reduced need for the protection provided by regulatory disclosure filings.

To be an accredited investor, a person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or a higher income in the current year. A person is also considered an accredited investor if they have a net worth exceeding $1 million, either individually or jointly with their spouse.

Question 3

How do I pay taxes on profit from this type of Investment?

Accepted Answer

Our investors will receive a Form K-1 each year. You simply forward this document to your accountant or tax professional, and it’s as simple as that. The Form K-1 will report your taxable income from the investment.

Question 4

What is a K-1?

Accepted Answer

A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.

Question 5

What returns can I expect on my investment?

Accepted Answer

Each investment opportunity is uniquely different, Convolo Capital aims to deliver our partners double-digit overall returns. That is returns in excess of 10%+ per year. Each investment opportunity will have specific conservative return projections that are based on our expertise and educated assumptions.

Question 6

How often do you make distributions?

Accepted Answer

We aim for quarterly distributions and will vary based on upon the specific deal, strategy, and return profile of the deal. Timing of the first distribution will also vary for each acquisition but is generally 3-6 months after the acquisition.

Question 7

Can I invest with my retirement plan?

Accepted Answer

Yes. Investing in multifamily in a structure like ours is perfect for retirement plan investing because your involvement is by definition passive. All you need to do, if you haven’t already, is set up a SELF-DIRECTED IRA with an independent custodian, like Directed IRA, Specialized IRA Services, or Vantage IRA. Once that is done you can invest using your IRA/401K/ROTH-IRA… or several other self-directed retirement account forms.

Question 8

How can I view your current offerings?

Accepted Answer

Due to SEC regulations, we are unable to publicly list or advertise our current offerings. Contact us if you're interested in becoming an investor.

Frequently Asked Questions