Investor Questions & FAQ
Q. How long will this investment last and how can I get my capital out of the investment?
A. Our financial projections anticipate that each building will be held for approximately 5 to 7 years, some properties could be held for 10 years. However, there is no definitive time period for keeping a property. When market conditions are right, we anticipate that the building will be sold for an appreciated amount. As owners of a building, investors can expect to realize
capital appreciation in addition to the monthly cash return they receive on their investment. Part of the return will be realize on disposition of the property.
Q. What is the minimum amount required to participate in an investment?
A. The minimum one can invest is $100,000 in most of the Sequoia Equity Partner project; some funds with multiple properties the minimum investment is $250,000
Q. What kind of return on my money can I expect?
A. While returns cannot be guaranteed, we are continually looking for properties that provide a cash-on-cash return on investment of at least 8%.
Q. Should I expect an 8% or better rate of return?
A. There are many factors in the market that affect your investment return, and as such, we cannot guarantee a specific rate of return on your investment. We work to limit the risk associated with your investment by purchasing multi-tenant properties with a stable occupancy rate and low debt-to-equity ratio. The projected rate of return an investor can expect is based on realistic rental and occupancy rates at the time of purchase, anticipated expense levels, the terms and requirements associated with the financing, and the contracted purchase price of the project.
Q. Should I expect an 8% or better rate of return?
A. There are many factors in the market that affect your investment return, and as such, we cannot guarantee a specific rate of return on your investment. We work to limit the risk associated with your investment by purchasing multi-tenant properties with a stable occupancy rate and low debt-to-equity ratio. The projected rate of return an investor can expect is based on realistic rental and occupancy rates at the time of purchase, anticipated expense levels, the terms and requirements associated with the financing, and the contracted purchase price of the project.
Q. How will my return on investment be distributed?
A. Cash distributions are made on a
Quarterly basis by direct deposit to your checking or investment account. Cash distributions are based on the cash flow of the project, current and future capital requirements, and the amount of cash on hand. This may vary with the property
or fund.
Q. Can I put an Sequoia Equity Partners property into my IRA or 401(k)?
A. Our investment projects are structured in such a way that they have been approved for self-directed investment of your IRA. Please contact your CPA for advise.
Q. Are the principals of Sequoia Equity Partners investors in the property?
A. Yes. Each principal is an equity investor in our investments In addition, the principals secure the short-term and permanent financing, and provide some level of personal guarantees to the lending institutions.
Q. Does Sequoia Equity Partners charge a syndication fee?
A. Sequoia Equity Partners views you as a partner in our investments. We want our success to be based upon your success. We do charge a fee for our services of one and a half present of the funds raised. From this fee all initial expenses for legal, organizational and property investigation are paid. Only after you receive 100% of your initial investment back as cash distributions will Sequoia Equity Partners participate in 18% of cash distributions, and profits.
Q. Does Sequoia Equity Partners charge a syndication fee?
A. Sequoia Equity Partners views you as a partner in our investments. We want our success to be based upon your success. We do charge a fee for our services of one and a half present of the funds raised. From this fee all initial expenses for legal, organizational and property investigation are paid. Only after you receive 100% of your initial investment back as cash distributions will Sequoia Equity Partners participate in 18% of cash distributions, and profits.
Q. If the rate of return is so good, why are the general partners allowing other investors to invest?
A. Higher returns on commercial real estate are generally available only on very large investments. By bringing together groups of investors, Sequoia Equity Partners is able to invest in multiple high-quality commercial projects. Without investor participation, our investment opportunities, like yours, would be more limited. Is some cases we group ” core & stabilized” properties with higher risk “ Value Add” properties the as a hedge against risk, this requires larger amounts of capital.
Q. In an emergency situation, can I cash out before the sale of the property?
A. There is no guarantee that an individual investor's position can be liquidated. However, we will offer our very best efforts to assist you in selling your investment to another individual or investor in the fund.
Q. May I invest in more than one Sequoia Equity Partners property?
A. Yes. Because each investment project stands on its own, you may invest in one, some, or all of our projects depending on your unique situation. This may also be effective by the fund structure. Some funds may have several properties, other fund will have only one property.
Q. Who manages these properties, and is there a management fee?
A. Management agreements are executed based on the location of the property. Most properties are managed by 3-party property management services under the direction of Landmark Asset Management. Management fees generally run 4 to 5 percent of gross rental receipts of the property. Asset Management Fees may in some cases run 1 to 1.5 percent or gross rental income. Landmark Asset Management provides asset, property and leasing supervision for all Sequoia Equity Partner properties.
Q. Where is Sequoia Equity Properties considering purchasing properties?
A. We are actively looking for high-quality properties in the North and South Carolina, Northeast Florida, Austin and San Antonia, Texas and Colorado. Markets where we have local knowledge and resources.
Q. What are the building specifications?
A. We have developed investment criteria to assist us in identifying superior investment projects with upside and added value. The quality of construction, age of the buildings, location, number of tenants, and the length and maturity of the leases, market cycles are all factors we consider when identifying potential investment opportunities. We look for office properties were we believe we can add value through income enhancement and better management of the property and assets.
Q. What size properties do the partners consider?
A. We consider buildings or groups of buildings from 50,000 to 250,000 square feet. In some case we will purchase several smaller properties 30, 000 – 75000 square feet, if they are all located in an emerging market.
Q. As an investor and owner in an Sequoia Equity Partners property, do I have a say in the management of the property?
A. As outlined in the operating agreement, investors have limited management involvement. The property managers handle all of the day-to-day worries and demands. We will from time to time seek input and limited assistance from our partners.
Q. Who decides to sell a property or is that decision solely up to the general partners?
A. Sequoia Equity Partners has the sole decision-making responsibility. We do communicate with our investors and seek their input related to major decisions.
Q. WAre there any tax advantages to owning real estate through an Sequoia Equity Partners investment?
A. Real estate is a natural tax shelter because the cost of the project is written off or depreciated for tax purposes, even as the property appreciates in value. All of our lease projects are treated as partnerships for tax purposes. As such, all tax benefits are passed on to the investors for their personal returns.
For additional questions not covered in this section, please call or email:
tedpro@landmarkam.com or Call 828 242 4722
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