What type of investments does BDI offer?

• Bar Down Investments specializes in acquiring, repositioning and reselling apartment complexes around the US.  We partner with people who are looking for passive investments with strong returns, employing a “syndication” investment model.

 

What is a minimum investment with BDI?

• Most of our investments have a minimum investment amount of between $50,000 and $100,000.

 

Are there any financial requirements as an investor?  

• Depending on our offering, you either have to be an accredited investor, either alone or with a purchaser representative, and must meet the legal standard of having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment, as defined by the SEC. 

 

Do I have to be “accredited”?

• All of our investments are registered with the US Securities & Exchange Committee (SEC), and most require that investors are “accredited.”  An accredited investor is someone with a minimum of $200,000 per year in income ($300,000 if married, filing taxes jointly with spouse) or a $1 million net worth, not including a personal residence.

• Here is more information:  https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-3

 

How do I prove that I’m an accredited investor?

• The SEC requires that investors get a third-party letter of accreditation.  There are two ways to accomplish this:

  • Investors may work with their own attorney or licensed CPA to provide this letter; or

  • We affiliate with a third-party company that has attorneys who can provide this letter.  We cover all costs for that process.

 

What is the typical length of an investment?

• Most of our investments are expected to span between 3 and 5 years, though market conditions can increase or decrease these investment periods.

 

Do I receive regular payments from my investment? 

• Yes.  Most investments with BDI will pay profits in two ways:

  • Quarterly cash flow payments will be made based on the income being generated by the property; and

  • The bulk of the profits (along with the return of the original investment) will come at the end of the investment, when the property is sold. 

  • For more information on how profits are generated through our syndications, click here

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How much cash flow can I expect to receive?

• Most of our investments are structured to pay between 6-8% cash flow annually, in addition to the profit share at sale.  See specific investments for their anticipated cash flow and profit expectation.

 

Do investors receive tax benefits from their investment?

• Yes.  Investors will share in the annual “depreciation” (a tax benefit of holding real estate) generated by the property.  Depreciation is a tax benefit that can be used to reduce your taxes by allowing you to offset certain types of income.  See specific investments for their anticipated tax benefits.  Please consult a qualified tax professional to determine the benefit this may have for you personally.

 

Will I receive a K-1 for my investment each year?

• Yes, the partnership will distribute K-1s to all investors no later than March 14 of each year.

 

Can I invest through my IRA?

• Yes.  Many of our investors are using self-directed IRAs to invest.  

• For more information about investing out of an IRA, contact us as invest@bardowninvestments.com.

 

Does the company/team invest their own money in the deal?

• Yes.  For every investment, we invest a minimum of $500,000 of our own funds alongside the passive investors.

 

How do I perform due diligence on a syndication investment?

• Check out this podcast that our very own J Scott did with BiggerPockets: https://www.youtube.com/watch?v=F7KPh9dLXnc

 

Is there any legal risk to me as an investor?

• We structure all of our investments as Limited Partnerships, with passive investors holding a limited partner stake in the investment.  As a limited partner, investors have limited liability, meaning their personal assets typically cannot be used to satisfy business debts and liabilities.  

 

What type of communication can I expect to receive as an investor?

• Bar Down Investments takes investor communication and transparency very seriously.  In addition to investors having a direct line of communication (via email, phone and Zoom) to dedicated investor relations team members, we also employ the following communication plan for all investments:

  • Prior to each investment being offered, the team will do a live Zoom call to overview all aspects of the offering being made, as well as answer questions from prospective investors.  This video – along with a detailed investment presentation deck – is made available to all prospective investors.

  • After purchase of the property, investors will receive monthly emails detailing the status of the project.

  • Each quarter, the team will hold a live Zoom call with investors to overview all aspects of the project from the previous quarter, including detailed financials.  These quarterly financials (along with a recording of the call) are then made available to investors.