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16 Questions to Ask Yourself BEFORE You Invest

So, you're interested in passive investing, and you think it might be something you want to participate in.

But, before you start subscribing to every real estate investor website you can find, hoping to get into deals, let's go over 16 questions that will help you:

  • Define what you want to get out of this type of investment

  • Determine what level of risk/reward you have

  • Decide when you are ready to reach out and start investing

  • What is an FAQ section?
    An FAQ section can be used to quickly answer common questions about your business like "Where do you ship to?", "What are your opening hours?", or "How can I book a service?".
  • Why do FAQs matter?
    FAQs are a great way to help site visitors find quick answers to common questions about your business and create a better navigation experience.
  • What kind of experience do you have?
    The Soranno Group has been active in real estate investment and redevelopment since 2006. You can view a history of our activities here.
  • Where can I add my FAQs?
    FAQs can be added to any page on your site or to your Wix mobile app, giving access to members on the go.
  • Am I obligated to invest once I join?
    No. You are under no obligation to invest in any of the opportunities we present. Joining our network lets us know that you are interested in considering real estate investment as part of your financial strategy and would like to hear about upcoming opportunities.
  • Can I leave the network?
    Yes. You can unsubscribe from the network at any time.
  • What happens if I decide I want to invest after joining your network?
    If you decide that you would like to invest with us, schedule a 30 minute discovery call by clicking the "Schedule Call" button on our website or in one of our emails. After the call, we will send you a link to set up a free investor portal account. Once you have an investor account, you will be able to immediately reserve a space in future opportunities that you want to invest in.
  • How much money do I need to invest?
    Most opportunities require a $25,000 minimum investment. Some opportunities may have a minimum investment as low as $10,000. The minimum investment amount will be listed in the information about each opportunity.
  • Are these investments safe?
    All investment vehicles, stock, mutual funds, and real estate, have some degree of risk that you should consider before investing.
  • What kind of returns can I expect?
    Although there are no hard and fast “standard” in the industry, typical investments target an average annual return between 10-20%. This includes the quarterly profit distributions and the profit forecast from the sale at the end of the investment holding period. This is often expressed as a multiple of your original equity investment. For instance, an investment may forecast an equity multiple of 2.0. This means, if you invested $20,000 in this opportunity, and the opportunity performs as planned, you will double your original investment (2.0 X $20,000, or $40,000) over the planned investment holding period.
  • How often will I receive profit distributions?
    Profit distributions are typically paid quarterly, starting a few months after the property is acquired and major capital improvements have been completed. Distributions will usually continue for the duration of the investment period, until the property is sold. The investment documentation that you will receive prior to investing will explain the distribution plan for the specific deal.
  • Are there any tax benefits to this type of investing?
    In some cases, limited partners can receive tax benefits from investing in multifamily real estate. Please speak to your CPA or tax preparer to find out how this investment type works with your specific tax situation.
  • How long is my money locked in an investment?
    Most investments will run for 3-5 years before the property is sold. In some cases, your investment may be returned to you early if the property is refinanced.
  • Can I sell my share of the investment?
    In most cases, you are promising your investment to the partnership for the full investment term, which is why we recommend only investment money that can be tied up in the investment for up to 5 years. However, we understand that unexpected financial situations can arise. The partnership agreement created for specific investment opportunity will provide instructions and options for these situations. We recommend that you read and understand the agreement before investing.
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Questions?

If you have questions about passive multifamily investing, we would be happy to answer them! Email your questions to us or let us know you would like a one-on-one call.

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