4 Easy Steps to Making Your First Investment
- Income Test: Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
- Net Worth Test: The person has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
- any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
- any entity in which all of the equity owners are accredited investors.
Every multi-family property investment is different and there is never a guarantee on an amount of return on investment. However, we typically strive to achieve a double-digit annual return with no guarantees over the life of the investment, which comes from cash-flow, forced appreciation from adding value, and the profits from the disposition of the property. In addition, we target a 12%-15% IRR (Internal Rate of Return) over the life of the investment. We invest our own capital into these properties and seek every opportunity to maximize investor returns. We discuss the business plan, projected returns, and equity structure with investors for each investment property.
No. Commercial real estate investments are longer-term in nature than traditional liquid stocks and bonds. Investors would receive a projected hold period timeline from the beginning of the investment and consistently throughout the life of the project. Cash distributions are done through cash flow from the property during the holding period of the asset. Investors may not receive their full principal investment back until the property sells. Snowball Equity makes no guarantees of investor returns.