How does investing with APPA Real Estate (APPA) work?
Investing with APPA is straightforward and simple. Consider us your one-stop shop to achieving portfolio diversification and investing alongside dedicated and disciplined real estate sponsors. Click on “Invest with Us” and we will walk you through the process online. At APPA, we take the burden out of investing in real estate so that you get all the benefits with none of the hassles of being a landlord, all while having the peace of mind that your money is in good hands and working hard for YOU.
Unparalleled
Deal Flow
APPA has a dedicated acquisitions team, longstanding relationships with all the major brokerages active in our target markets, and significant experience purchasing direct from sellers. Both principals are actively engaged in the identification, review, and analysis of all deals. We rely on frequent communication with property owners, competitors, lenders, and other industry leaders to ensure we get eyes on every project coming to market.
Quarterly Cash
Distributions
As cash is collected and expenses paid, including interest on any debt and reserves for capital expenditures and property taxes, distributions may be made to investors via wire or ACH. We endeavor to make distributions quarterly, although special distributions may be made after capital events like refinances or property sales.
Capital
Appreciation
APPA invests alongside you as a partner in every deal. We strive to preserve capital and protect against downside risk by analyzing all deals from multiple perspectives and stress testing them for economic downturns. APPA believes strongly in the multifamily sector due to positive demographic shifts, inflationary pressures, and the relative risk/reward of apartment investments.
With whom you invest matters more than in what you invest
Premier Tenants. Premium Returns.
APPA is led by Aaron Marzwell and Brian Rinsky. Aaron has worked in real estate development for over 20 years, capping his employment career at a $30 billion institutional real estate fund manager by personally overseeing $1 billion of real estate transactions. Brian spent over a decade working for the Federal Reserve, before working at some of the largest banks in the world managing risk and compliance. From its inception 10 years ago, APPA has invested and managed multifamily real estate transactions totaling almost $400 million in value.
Any reference to returns represents a target that the company seeks to achieve. Actual results will likely vary from the represented figures.
FAQs
Real estate is a real asset and thus an excellent inflation-resistant investment. In today’s inflationary environment, real estate is a natural hedge and provides some protection against market fluctuations. If you’re interested in protecting and growing your investments by diversifying away from volatile bonds and equities, we believe passive commercial real estate is a sound choice. Real estate owners generally raise rents in-line with inflation, plus a spread, providing a natural buffer against inflation.
Because regulators like the SEC (Securities and Exchange Commission) can’t possibly oversee and regulate every single investment out there, there are certain classes of investments that are made available only to accredited investors to protect individual investors who may not have the financial cushion to absorb major losses or fully understand all the risks associated with their investments.
At a high level, an accredited investor is a person or entity that is allowed to participate in certain private securities offerings. Usually, these securities are more complex or sophisticated investment offerings that may not be registered with financial authorities. Accredited investors are considered financially savvy enough to fully understand and evaluate the risks of potential investments and thus don’t need the protections that come from a registered offering. Essentially, an accredited investor has the license to “drive” on the open road of the investment world, but they do so with full responsibility for the potential risks.
Don’t worry, there’s no formal test you have to take to qualify for accredited status. Rather, it comes through meeting certain requirements – either financial or professional – as laid out by the SEC.
As long as you meet at least one of the following requirements, you are considered an accredited investor.
Income Requirement
The first requirement is based on income, and it’s fairly easy to tell whether you qualify or not. To qualify as accredited via the income requirement, you must:
- Have an annual income of $200,000 (or $300,000 for joint income with a spouse or spousal equivalent)
- Have been at or above this income level over the prior two years
- Expect to earn the same or higher income this year
If that’s you, woohoo! You meet the accredited investor definition. No need to meet the other requirements. If you don’t yet meet this income requirement, read on for the next qualification.
Net Worth Requirement
The second way to qualify as accredited is via the net worth threshold of $1 million or more, not counting your primary residence, either on your own or together with your spouse or spousal equivalent.
Accredited Investor – Professional Qualification
To qualify as accredited via professional requirements, you must be or have one of the following:
- Certain professional certifications, designations, or credentials (e.g., if you hold a Series 7, 65, or 82 license)
- Individuals who are “knowledgeable employees” of a private fund
- SEC- and state-registered investment advisors
- Directors, executive officers, or general partners (GP) of the company selling the securities
- Any “family client” of a “family office” that qualifies as accredited
It’s important to note that for those who qualify as accredited based on their status as knowledgeable employees, they are considered accredited only for offerings managed by their employers. In other words, they cannot use their status as a knowledgeable employee to invest in other offerings.
Due to SEC regulations, only accredited investors are eligible to invest in any of our offerings, while non-accredited investors are eligible to invest in select offerings only.
We anticipate commencing quarterly distributions on value-add (also sometimes known as acquisition rehabilitation) projects shortly after purchase. For development projects, distributions will normally commence shortly after stabilization. For the avoidance of doubt, distributions are generally not made during the construction, renovation, or lease-up periods as there is little to no income then. Distributions are usually made from operating cash flow, but if there is a capital event like a refinance or sale, distributions will generally be shortly thereafter.
You can easily track your investments by logging in to our portal, where you will see all of the projects within which you are invested. Further, you will see the amounts of your investments and any distributions to date. And the relevant investment documents will always be available online too.
We highly value our relationship with our investors and can be reached via phone or email. If we happen to miss you, we will attempt to call you back as soon as practical. And we strive to answer all emails within 1-2 business days.
We will provide quarterly investor reports by project. These will be distributed via our online portal. All investors will also receive annual K-1s for all projects within which they’re invested.
Why Invest with APPA?
APPA is a proven developer, builder, and operator with significant experience during both boom-and-bust cycles. The partners have a combined 40+ years of real estate, finance, and risk management experience.
What sets you apart?
We are very disciplined in sticking to what we know, that is, product types and neighborhoods. We focus on developments in central locations surrounded by strong employers, universities, and local restaurants and vendors. This helps ensure that buildings will appreciate as the neighborhood grows and thrives. Further, trust that your investment is backed by a real asset that you can see and touch and tour.
100% Passive Income
We strive to provide our partners with the opportunity to engage in stable and secure commercial real estate investments without having to respond to tenant issues or deal with maintenance requests. We oversee the entire real estate process, from purchase to entitlement, if applicable, and then development and or renovations to lease-up and ongoing maintenance, so that our partners can enjoy 100% passive cash flow with none of the headache.
Tax Advantages
Our investors receive K-1 tax forms, allowing them to capitalize on the depreciation generated by operating real estate assets, thereby reducing their tax liability as depreciation is a deductible expense of the project. Thus, as our partners, our investors may benefit from many of the same real estate tax advantages that owners do, without handling property or tenant concerns. Please consult with your tax attorney or representative for further tax benefits.