INVEST WITH PRESTIGE

Prestige Properties has achieved an outstanding internal rate of return of 19% on average

Prestige Properties collaborates with a select group of partners to invest in cash-flowing, stable, multifamily apartments located in highly desirable areas. We uphold our commitment to our partners with the utmost integrity, operating with complete transparency to foster long-term growth and enduring partnerships.

Investors gain the opportunity to passively diversify in real estate with a high-performance team – without the hassles of management – for above-average returns. They partner with a firm that has created win/wins for stakeholders for more than 25 years.

At Prestige, we operate with a strong belief in the long-term stability and demand of the residential apartment market.

BENEFITS OF INVESTING WITH PRESTIGE

Steady Cash Flow

Generate passive income from well-managed apartment communities.

Portfolio Diversification

Reduce risk by adding multifamily real estate to your investment portfolio.

Seasoned Partner

Benefit from our proven track record in multifamily apartments.

Cohesive Team

Gain a unified team that makes it easy to co-own an apartment community.

How Our Investor Program Works

01:Opportunity Identification

At Prestige, we carefully source and evaluate high-quality, multifamily investment opportunities. Our team performs thorough due diligence, negotiates purchase terms, and secures favorable financing, to set the foundation for a successful investment.

02:Investor Briefing

When our team identifies an opportunity, we present you with a comprehensive investment package. This includes detailed property information, financial projections, our strategic plan to increase the property’s value, renovation plans, and the anticipated timeline for the investment.

03:Commitment

As a passive investor, you decide on your investment level. The entire process, from documentation to fund transfer, is streamlined through our secure online investment portal. It’s simple and transparent.

04:Property Acquisition and Value Creation

Upon closing, we execute our value-add strategy. This involves property renovations, rent optimization, and operational improvements to maximize returns. We work diligently to enhance the property’s performance and overall value.

05:Cash Flow Distribution

Once the property is stabilized and generating income, we begin distributing monthly cash flow to investors. These distributions come from rental income as the property’s cash flow improves following renovations and rent adjustments.

06:Exit

Our typical holding period is 5-7 years. At this stage, we either sell or refinance the property to return your initial investment along with your share of profits generated from the property’s appreciation and value creation.

Invest directly in a specific Prestige Properties project to grow a personalized multifamily portfolio.

Accredited investors: sign in to access the Prestige Properties Portal and explore investment opportunities.

FAQS

If I decide to invest, what is the process?

Investing with Prestige is project-based. Once an opportunity arises, we provide you with a comprehensive package that includes detailed property information, financials, the renovation plan, and key demographic data. Our investor portal streamlines the entire process – from reviewing the offering documents to signing legal agreements and wiring investment funds. Your ownership interest as a limited partner is secured by the operating agreement, while the offering memorandum outlines the specifics of the investment. Should you have any questions, our team is always available to assist

What is the minimum investment required?

Our minimum investment amount is $100,000, though this can vary depending on the size and scope of the project. Each offering memorandum will clearly outline the minimum commitment required.

How do you select properties for purchase?

We use a rigorous selection process for identifying multifamily properties. This involves analyzing market conditions, property financials, growth potential, and value-add opportunities. Our team focuses on off-market deals and below-market pricing to ensure favorable terms for our investors. Additionally, we consider factors like neighborhood demographics, employment trends, and local economic indicators to assess long-term profitability.

What kind of returns can I expect?

Our projects typically aim for an 18-22% internal rate of return (IRR). Investors benefit from both cash flow during the holding period and profits from appreciation upon sale or refinancing. Investors receive an 8% preferred return, meaning they get paid before Prestige does. Please note that past performance is not indicative of future results.

How is my money protected?

Prestige has been in business for 25 years, successfully completing more than 1,500 transactions. We are highly selective and conservative, purchasing properties below market value and off-market. This approach mitigates risk, ensuring that if an issue arises, the property can be resold and investors repaid. Your investment is secured through your membership in the company that owns the property. However, like all investments, there are inherent risks, although we have never lost investor money due to our conservative investment strategy.

When will I get my money back?

The typical investment period is five years, giving us time to complete renovations, raise rents, and time the market for the most favorable sale. Depending on market conditions, some projects may be sold or refinanced earlier. Once the project exits, investors can choose to either roll their funds into the next opportunity or withdraw them.

Is this a debt or equity investment?

This is an equity investment. Investors receive an equity stake in the project based on their investment amount, along with a preferred return. Investors are paid their preferred return first, before Prestige receives a share of the profit, aside from fees earned to cover overhead costs. Full details of the investment terms are provided in the offering memorandum.

Do I have to sign a personal guarantee?

No, as an investor you are not required to sign a personal guarantee. While the bank loans used to finance the property may require a personal guarantee, Prestige takes on that responsibility. Since this is an equity investment, investors are not personally liable for the bank loans.

Can I invest using my Self-Directed IRA?

Yes, many of our investors use Self-Directed IRAs to invest in our syndication projects. However, we recommend consulting with your tax advisor to ensure it aligns with your retirement strategy.

How long will my money be tied up?

Typically, investments are held for 5-7 years, depending on the project’s business plan and market conditions. This allows time for renovations, rent increases, and property appreciation. During this period, the investment is illiquid.

Are there any tax benefits to investing?

Yes, real estate syndication offers various tax advantages, such as depreciation and mortgage interest deductions. These can help reduce taxable income, but tax treatment varies for each investor, so we recommend discussing this with your tax advisor.

What happens if the property underperforms?

In the event a property does not meet expectations, we have multiple exit strategies available, including selling the property to recoup the investment. Although no investment is without risk, we prioritize mitigating these risks through conservative underwriting and acquiring properties at below-market prices.

How are distributions made?

Distributions are typically made on a quarterly basis once the property begins generating cash flow. Investors receive their share based on the terms outlined in the offering memorandum and investment agreement.

Can I exit the syndication early?

Apartment syndications are generally illiquid, meaning early exit options are limited. However, some syndications may offer secondary markets or buyout options. This should be discussed with our team before investing.

What role does Prestige Properties play in the investment?

As the general partner (GP), Prestige is responsible for sourcing, acquiring, and managing the property. We handle all aspects of the project, from due diligence to renovation and ongoing property management, so you can remain a passive investor.

What fees does Prestige Properties charge?

Prestige charges standard industry fees to cover our operational and management costs. These typically include acquisition fees (1-2%), asset management fees (1-2%), property management fees (3-5%), and disposition fees (1-2%) upon sale. All fees will be transparently outlined in the offering memorandum for each investment.

What happens if the market experiences a downturn?

We mitigate market downturn risks by purchasing properties below market value and focusing on cash-flowing assets. Our conservative approach ensures that even if property values decline, the property's cash flow from rental income can still provide stable returns. Additionally, our holding period allows us flexibility to wait for market conditions to improve before selling the property.

Can I reinvest my returns into future projects?

Yes, you have the option to reinvest your returns into future Prestige projects. This allows you to compound your investments and continue growing your portfolio with us

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