Frequently Asked Questions…Answered
These frequently asked questions cover the most common concerns that we often hear from our first time investors. We are a “crystal clear” operation. Our Investor friends can reach us any time and for any clarification. We want every prospective investor to be fully confident that they understand the pros and cons of any specific type of investment. In that way you can be confident that your investment decisions are sound ones.
Can I be guaranteed I will get my money back?
- NO, as in most investments there are no guarantees. As will be explained in the Private Placement Memorandum, under unusual circumstances it is possible for the entire investment to be lost.
How do you mitigate risk of loss to investors?
- The benefit of our type of investment is for you become very knowledgeable about the risks before you invest. We provide a Private Placement Memorandum, Operating Agreement, and Subscription Booklet along with the latest and 12-month Trailing Profit & Loss, Rent Rolls, Property Brochure, Due Diligence Reports, Lease Audit reports, Executed Sales Contract and more. We will let you see documentation on the profit history of the specific asset you would be investing in, what the current issues are, how we intend to resolve them and the specific plan and anticipated returns.
- We hire experienced securities legal counsel to help us draft the appropriate documents. We hire experienced commercial real estate counsel to review our loan documents, purchase and sale agreements, and property transaction documents, and to handle our closings.
- Of course the property is covered by insurance to mitigate physical damage and liability risks. We also insure the property for loss of rent during rebuilding and carry a full replacement cost with an Umbrella Policy on each property.
- To lose all of your investment, something drastic would have to occur that would lead to foreclosure; such as all of the tenants would have to move out due to an undiscovered hazard; or an environmental hazard could completely destroy the property and the insurer fail to pay for the extent of the loss; or US financial markets would have to crash with no refinancing available when a loan on a property is coming due, et al. We perceive this risk to be small, because we buy at a reasonable rate, without overleveraging, and then further increase value by enhancing the property and increasing income.
- Our Affiliated property management company managesall of the assets we acquire, this way we are dealing with the property daily and seeing it perform with full care. We take immediate actions and strategize to promptly reverse any negative trends we see.
- The only way to get a completely risk free investment is to choose a treasury bond…with its nascent level of return.
How long will my money be needed?
- This is determined by the specific property and improvement plan and will be specified in each property offering. Typically we intend to hold properties between 3-7 years.
- Each property has an anticipated rate of return and a proposed exit strategy. For example, our strategy may be to hold a property for 4 years OR until we hit a specific appreciation hurdle, perhaps +40%. The first of these two factors to hit will cause us to sell the property and payoff our investors with available proceeds.
Can I share investment opportunities with my friends and relatives?
Yes, we welcome introductions to your family and friends – but remember, we make it a point to get to know each and every investor, and to make sure they know us, before we invite them to invest. At any given time we are underwriting/evaluating 3-5 properties that we have received from our strong relationships with brokers. Several are pocket listings that we learn about before they are shared with other investors.
How many other investors will be in the deal with me?
- Each acquisition is unique, depending if there is existing financing in place, whether the current owner will be carrying back financing, etc. Depending on the scale and value of the asset, most deals will include between 3 and 20 investors.
- If you would like to solely invest in an asset and have funds to do full acquisition, and prefer to be the only investor in a deal, we would be glad to locate a property that fits your criteria. We do the underwriting/evaluation along with due diligence and assign the purchase contract to you for a fee and/or become a management partnerand manage it for you.
Will I be involved in the day to day management of the property?
- The members of Moneil Investment Group, LLC and its Affiliates oversee the management of the properties and assets and executethe improvement plan. Our affiliated property management company is Moneil Management Group, LLC (MMG) and is fully equipped to manage the asset on a day to day basis with their team of professionals. We have an Asset Manager and a Director of Construction and Maintenance to facilitate that. Each property has its own Community Manager, Assistant Community Manager, Lead Maintenance Technician and Assistant to the lead. Typically, 4-5 full-time staff manage each asset we acquire.
- We will hold regular conference/webinar calls to update investors of the property status. We hold a monthly Investor call for the first 4 months after we close on a property and quarterly web/Teleconference calls each quarter after that. We send out executive summaries and the financial reports every two months. We are very approachable by our investors. Our track record and knowledge keep our investors returning to invest more money in our new acquisitions.
- We are always willing to discuss any issues or concerns on an individual basis with specific investors.
Can I use my retirement funds in this type of investment?
– Yes. Self- directed IRA’s and pension funds can invest in real estate.
– IRA and 401K funds can typically be rolled over into a self-directed IRA account. The custodian is an intermediary that you direct. There are several self-directed IRA custodians, we have had positive experiences with a coupleto whom we can refer you and they will be happy to advise you in how to transition your funds into one of their custodian accounts.
If this list of frequently asked questions has not fully addressed your questions, feel free to contact Vinney Chopra at 925 766 3518.