To participate in Phenom Capital Group’ multifamily deals, eligibility requires being an Accredited Investor. An accredited investor is an individual or entity that meets specific financial criteria as outlined:
Alternatively, you may qualify as a high-net-worth individual if your net financial assets exceed $5 million.
Please note: We are currently accepting US and Canadian investors.
The minimum investment amount is USD $100,000.
This strategic decision allows us to meet the overwhelming demand for our deals and provide unparalleled service and support to our valued investors.
Due to the limited partnership structure, Canadian investors can not use registered funds to invest in our opportunities.
However, US-based investors can often invest using funds from an IRA or self-directed 401(k). You will need to confirm your ability to use funds from these accounts with a financial advisor.
Real estate investing always carries inherent risks, despite the stability associated with multi-family properties. To safeguard your investment, we have implemented a comprehensive risk mitigation strategy. We mitigate risk through acquiring talented team members, rigorous deal analysis, including property inspections and financial audits, as well as strong value-add renovation plans. We also adhere to conservative underwriting practices, secure locked-in financing rates, and maintain ample cash reserves.
While we cannot guarantee outcomes, we leverage our strong relationships with local brokers to access exclusive off-market deals. We also partner with experienced property management companies to optimize operations and maximize returns. As your trusted partner, we go the extra mile by investing our own personal capital, ensuring our interests align with yours.
Investors should anticipate a commitment period of 2-5 years for their capital before we implement an exit strategy, such as a refinance or sale. The specific duration depends on the property’s unique business plan and can be influenced by market conditions. Rest assured, investors will receive projected timelines upon property acquisition and will be kept informed throughout the investment process. Our goal as operators is to remain consistent with the initial projections and execute the strategy that maximizes returns for all investors.
The projected returns will vary from deal to deal and like all investments, never carry guaranteed outcomes. That being said, we typically pursue deals that project 15%-20% AAR (annualized rate of return) for each year over the investment’s duration.
Our goal is to deliver consistent income to our investors. We target to have distributions in place within 3-6 months of acquiring the investment property. As the property generates stable cash flow, we aim to provide monthly income distributions to our investors, specific to the investment and property performance
Our real estate investments have longer-term horizons, meaning they are less liquid than stocks and bonds. Investors receive a projected hold period timeline and regular updates. Cash distributions come from the property’s cash flow during the holding period.
At Phenom Capital Group, we do everything in our power to protect your hard-earned money.
We work closely with Waverly, licensed as an Exempt Market Dealer – to keep us up to date on regulations and best practices. They help ensure our clients are protected by keeping us in compliance and making sure our clients are not overstretched financially.
There are factors that are beyond our control, like market conditions. There is a risk that you can lose your investment, just like the stock market. However, we believe this to be highly unlikely for several reasons:
Firstly, the approach used to underwrite these deals is very conservative and gives us plenty of room to weather a down market. Secondly, we are buying proven assets
Simply schedule a call with our client relationship team to get the process started.
Depreciation and mortgage interest deductions are the two most common tax advantages. Please note – It is advised to talk to a tax professional to confirm what benefits, if any, will be available to you.
At Phenom Capital Group, we have designed a tax-efficient legal structure to support Canadian investors in cross-border investments. We established a Canadian-based Limited Partnership that directly invests in US real estate assets. This structure protects our Canadian investors from risks of dual taxation.
We focus on markets that we believe are undervalued and are positioned for growth. We invest in areas located in emerging markets with affordable rent, where there is more opportunity and upside to increase rent.
