Inflexand Capital Group specializes in acquiring, repositioning and reselling apartment complexes in the SouthEast.  We partner with people who are looking for passive investments with strong returns, employing a “syndication” investment model.

ICG typically targets C Class properties which Brian Burke defines in the passage below:

Class C properties. These properties are in less desirable areas than Class A and B. Buildings are normally at least thirty years old, and will generally benefit from significant updating and repairs. Rents will be lower, and vacancy rates may be slightly higher. This all translates into lower acquisition prices, although these opportunities can deliver the best cash flow and returns if managed well. Over the long term they can grow in appeal and value very well. There is always a new neighborhood on the fringes that’s the beneficiary of revitalization programs and dollars, and becomes the next trendy zone for artists and start-up businesses. Think of these as your Google or Uber stock when they started out, only with the advantage of brick-and-mortar security for your capital. One thing to watch for in real estate offerings is Class C properties being marketed as Class B, which is far more common than it should be.

-Burke, Brian . The Hands-Off Investor (p. 120). BiggerPockets Publishing. 

What are the projected Returns?

Preferred Return(“pref”): is not a guarantee however, it is what an investor is projected to make before the general partners take any split of the cash flow. This helps to align sponsors with their investors best interest. 

Example 8% Pref: $100,000 invested X 8% = $8,000 returned annually

Equity Multiplier: a numerical expression of how much you have multiplied the cash you invested (over the life of the deal).

Example 2x Multiplier: You invest $100,000 and over the 5 year period you collect a total of $200,000 (including distributions and equity earned on sale). The ICG model is to achieve minimums of an 8% preferred return and 2x Multiplier over a 5-7 year hold period. 

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. 

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

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

There are third-party companies that have attorneys who can provide this letter.  

Most of our investments are expected to span between 5 and 7 years, though market conditions can increase or decrease these investment periods.

Do I receive regular payments from my investment? 

Yes.  Most investments with ICG 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. 

Since ICG typically invests in value-add apartments, it often takes twelve months to stabilize and start distributions. 

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.

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.

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

Yes.  Many of our investors have used these methods but each situation is different. 

For more information about investing using one of these methods, contact us at EMAIL.

Yes.  For our investments, we continue to invest hundreds of thousands into our deals alongside the passive investors.

A few considerations:

Population GrowthDemographics (does median income support projected rents)

CrimeLabor market (aka jobs and job diversity)

General Partners/Sponsors;

CharacterEducation

Past performance

Skills of each memberCommunication

Do they seek to understand your goals?

Market knowledge

Professionalism

Process

This is not an exhaustive list. We recommend reading The Hands Off Investor by Brian Burke for more detailed information. 

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. 

ICG 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.