Frequently Asked Questions
A syndication, at its core, is a partnership. It involves multiple parties pooling their resources together to acquire an investment property. General Partners (GPs) are responsible for the execution of the business plan while Limited Partners (LPs) assume a passive role. By investing their capital, Limited Partners collect the greater part of the profits and can often times find more success by partnering with experienced operators rather than using their own time and energy to find, manage, and dispose of the investment alone.
Heartsill Capital Partners seeks out assets that have a targeted return of >15% IRR and an equity multiple > 2.0X and a hold period of 5 years.
In apartments, it’s all about the ability to add value. Why? Because every dollar that we can bring to the bottom line of an asset creates anywhere from a 17 – 20 multiple when it’s time to sell. First, Heartsill Capital Partners targets markets where people are moving. There’s job creation, demand, good schools nearby for children living at the properties.
Second, Heartsill Capital Partners looks for assets with the ability to reduce costs through managerial efficiencies.
Third, Heartsill Capital Partners seeks out properties with the ability to add improvements. Perhaps that means the amenity center or a gym that hasn’t been touched in a couple of decades. It may be a pool that needs new furniture/cabanas. Or, it could be cosmetic upgrades for all units.
Value add is simple. It’s not always easy to execute, but it comes down to great markets, reducing costs, and raising rents.
The preferred return is a preferential rate of return that the LP receives before the GP participates in any cash flow or profit on a given asset.
Heartsill Capital Partners focuses on value-add multifamily assest opportunities and targets areas with strong growth indicators across recession-resilient niches which perform well in all market cycles.
Your liability is limited to the capital that you invest.
Investing in real estate provides tax advantages. Investing in multifamily amplifies those tax advantages. Investors benefit from tax benefits such as accelerated depreciation and cost segregation, possible 1031 exchanges into new projects and tax free return of initial equity.
This is active management. And, it takes a team to execute the business plan. Heartsill Capital Partners strives to be in the middle of the bell curve so that it isn’t fee-heavy and still has the resources to put an A-team on the field for the best chance to win.
Investors at Heartsill Capital Partners have access to industry leading technology. In our investor portal, you have 24/7, 365 access to the reports that come out quarterly, the accounting for distributions and capital events, as well as a repository of tax documents. In addition to a portal, Heartsill Capital Partners has a great in-house Investor Relations team ready to hop on the phone and respond to an email or text.
As the deal sponsor or GP, Marv and Victoria McGuire put actual “skin in the game” in the form of capital and personal guarantees of their balance sheets against any debt.
Nearly every retirement account product including IRA 401k and Roth IRA can actually be self-directed. If you’re looking for help in this area, Heartsill Capital Partners can’t offer advice, but can certainly help point you in the right direction to unlocking your retirement funds and using them to invest in apartments.
An accredited investor is a person who earned $200,000 in personal income, or $300,000 for joint income, for the last two years with the reasonable expectation of earning the same or 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. This amount cannot include a primary residence.
