What is a K-1?
Similar to a 1099, a K-1 form is an accounting of the tax income for the year. Each investor receives one per investment. K-1 forms are most commonly used in partnerships and in real estate ownership.
How often should distributions be expected?
An investor can expect to receive quarterly distributions. Realty Dynamics also distributes capital to investors at the end of the year, depending on the performance of the properties and when properties are sold or refinanced.
How will I be updated on the progress of my investment?
Investors will receive asset management updates via email on each investment and a detailed investor report every quarter.
What happens to the money when I fund an investment?
Funds can be wired directly into the subscription account of the fund or sent by check.
Can I invest through my LLC, LP, trust or IRA?
Yes. Investors are able to invest through an LLC or trust. Investors are also able to invest through their Roth or self-directed IRAs to grow TAX FREE wealth.
Please contact a Realty Dynamics team member if you need help selecting an IRA custodian.
Am I able to cash out of my investment at any time?
No. By their nature, real estate investments have a longer term time horizon than that of liquid stocks or bonds. We typically look for a 10-year hold. After 5 years, we may refinance and can open up the shares to a buyout internally if they would like to liquidate their equity sooner.
America has turned into a nation of renters,
creating a great opportunity in multi-family.