Frequently Asked Questions’s

who we are

Frequently Asked Questions’s

Quickly get answers to your questions about multifamily investing, accredited investor requirements, and more.

An accredited investor is someone who meets specific financial criteria set by the SEC, such as having a net worth over $1 million (excluding their primary residence) or earning over $200,000 annually ($300,000 for couples). This status allows you access to exclusive investment opportunities.

Historically, our friends and family make up the majority of our investors on any of our previous projects. When we say investing alongside the principals, we mean investing alongside not just us, but our parents, relatives, close friends and colleagues. Moving forward, we are excited to finally open our doors to other accredited investors that we may not have personal relationships with, yet.
In addition to information in the “Who we are” tab, we are different in many other ways. We are not interested in growth for the sake of growth, like many of our competitors. Our investments opportunities are scarcer, driven in part by our discipline to not participate in the “rat race” we saw in 2022-2024. We are patient, methodical and only act on the right opportunities while avoiding speculation. We treat your money with the same care as our existing investors over the years, like friends and family. We have never had a loss of investor equity and have never had any capital calls in our history, and we plan to keep it that way.
On most projects, there is a stabilization period in which there is no cash ow distributed until operations are normalized. On a typical rehab project, this period can last from 12 to 24 months. Once rents and expenses reach an acceptable level, and reserve accounts are adequate, we distribute cash ow on a quarterly basis. Each investor gets their pro-rata share of the cash ow in the form of a check with the quarterly operating statements.
Our investors have a priority return of capital for money invested in a given property investment. For example, if we purchase a given property for $5 Million with a $1 Million down payment, and we sell it for $7 Million at a later date, the rst $1 Million less previous cash ows is distributed to the capital investors as a priority return of capital, and the balance is split as per the ownership percentages
You can sell your share to another third party before the building sells and we have seen this numerous times. The members have a rst right of refusal to purchase the shares and the managing members must approve any outside investors. Lack of liquidity is the major downside to this investment, but we have not run into a situation yet where someone needed to liquidate and there were no buyers available.
They receive a 20% pro ts interest which is paid at the end of the investment horizon upon sale as well as 20% of the cash flow and re nance proceeds. They also take an organizing fee that ranges from transaction to transaction depending on the complexity, but it is generally around 5% of the total cost of the project. All of our previous returns take into account profit participation, fees and closing costs. Our track record is the net money distributed to our partners, so while we are well compensated, we are worth it.
The managing members will notify the partners when they feel that it is the best opportunity to either sell or re nance a given property. All major decision making is done by the managing members. We anticipate 2-10 year holds on all properties, however it may be shorter or longer based on the state of the market
We are in the business of nding and creating opportunities for our investors and ourselves in investment properties. As a partnership we have the option of taking the money when we sell, and paying tax on the gain, or exchange the proceeds into another investment property and cycle through this process again.
The managing members sign as well as any individual investors that have exchanged into the transaction via a 1031 tax-deferred exchange (for exchanging entities only LLC managers or LP general partners sign)
Historically our partners have been a close community of repeat investors consisting of not just our friends & family, but high net worth individuals, business executives, and family offices. Looking forward, we are excited to open our doors to other accredited investors as both our business and scale of our projects continue to grow

Why Invest with Ironridge Capital?

STABLE PASSIVE INCOME

All the benefits of multifamily real estate, backed by consistent revenue and experienced leadership you can trust. Our focus on long-term, income-generating assets offers stability, minimizing the volatility typically found in traditional stock investments.

CASH FLOW

Our diverse revenue streams, rental income, asset appreciation, and value-add strategies, ensure steady and reliable cash flow. With a focus on multifamily assets, we aim to deliver consistent returns for our investors.

TAX BENEFITS

Take advantage of depreciation, Opportunity Zone investments, and other tax incentives. We focus on strategies that help you maximize tax savings, allowing you to keep more profits working for your retirement and legacy.

LEVERAGE

We combine partner equity, institutional financing, and strong market knowledge to acquire high-value real estate. This strategic use of leverage ensures your investment capital is working harder, providing enhanced returns while minimizing individual risk.

APPRECIATION

We focus on underperforming properties, using our redevelopment expertise to unlock potential and drive asset appreciation. Whether through repositioning or operational improvements, we work to ensure that your investment grows in value.

EXIT STRATEGY FLEXIBILITY

We provide flexibility in your investment exit, allowing you to adjust your approach based on market conditions and personal goals. Whether through refinancing, sale of assets, or portfolio growth, we ensure you have options to optimize returns and strategically plan your next move.

Get in Touch

Reach out to us today if you have any further questions. We are happy to assist with your financial well-being.

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