FAQ

Who can invest in commercial Real Estate?

Our investments are open to approved, accredited investors. Accredited investors are individual investors who either have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have earned income over each of the last two years of at least $200,000 and have the expectation to make the same amount in the current calendar year. If you do not qualify under that standard, you can choose to combine your income with your spouse with a qualification threshold of $300,000.

Why invest with us?

We have a conservative approach to our investment strategy. We do one thing, we do it well, and we do not deviate from our approach. We only invest in stable markets throughout the United States.

What type of funds can i use to invest?

There are many ways you can participate in this type of investing. You can invest with cash, through trusts, using self-directed IRAs, 1031 Exchanges, and more.

Are there tax advantages?

There are several tax advantages to investing in multifamily properties: quarterly cash flow distributions will flow to you on a tax deferred basis; proceeds from refinancing events come to you with no immediate tax obligation; 1031 exchanges allow you to defer capital gains taxes; the step-up in basis benefit reduces your heirs' tax obligations when they sell the inherited asset.

This is not professional tax advice. Consult with your tax professional to better understand your individual tax situation.

What exactly are the funds used for?

Investor funds are used for the total acquisition cost of the property. This includes but is not limited to the actual purchase price of the property, acquisition fees, legal and transaction costs, capital projects, and reserves.

Where do we invest?

We are long term holders of performing multifamily assets which provide both cash flow and equity growth. We only invest in markets with above average historical population, and income and job growth with multiple industries driving diverse economic growth. We will not expose our investors to high-risk markets with a history of volatility, unfavorable landlord-tenant laws, or an unfriendly business environment.

How is this different from a REIT?

A REIT (Real Estate Investment Trust) is basically real estate flavored stock and is highly correlated to the performance of the stock market. As direct fractional investors, Tandem clients are protected from that volatility. Additionally, direct fractional ownership provides investors access to all of the tax advantages that are unavailable to REIT Investors.

What is a K-1?

Most importantly, Tandem investors have the ability to choose the projects in which they invest. REIT investors rarely have a choice in the projects the REIT decides to purchase. As a partner in the LLC that purchases the properties, you will receive a K-1. 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.