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FAQ

What are real estate syndications?

Real estate syndications are group investment opportunities. As a limited partner passive investor in a real estate syndication, your money is invested alongside dozens (and sometimes hundreds) of other investors in a single commercial asset (such as an apartment building).

As a passive investor, you won’t have any other active responsibilities in the deal. The Spark Investment Group team, along with other general partners in the deal, will manage the asset on your behalf.

What are the projected returns on investments like these?

The projected returns will vary from deal to deal and are never guaranteed. That being said, Spark typically looks for deals that can provide a 5-6% annual cash-on-cash returns along with a 13-15% Internal Rate of Return (IRR).

What’s the minimum investment?

The minimum investment is $25,000.

Do I need to be an accredited investor to participate or register?

No, you don’t need to be an accredited investor to register with the Spark Investor Club or to invest with us. However, certain deals will be open to accredited investors only.

To be considered as an accredited investor, you must meet one of the following two criteria:

  1. Have $1 million in net worth (not counting your primary home).

OR

  1. Have either an annual income of $200,000 per year or an annual combined income of $300,000 (together with your spouse).

Additionally, you must have maintained this net worth or these annual income amounts for the past two years and intend to continue doing so over the coming year.

How long are the hold times?

The average projected hold time for our investments is 5-7 years.

What types of assets does Spark focus on?

Spark Investment Group focuses on one asset class only: multifamily apartment buildings. We currently own and operate assets ranging in size from six to 281 units. In addition, we own and operate everything from 1970s and 1980s value-add properties to newly built, build-to-rent (BTR) products. While our geographic market may be specific, we are open to investing in properties of various sizes and ages. Our goal is to offer our investors solid real estate investment opportunities that will provide good long-term, risk-adjusted returns.

What markets does Spark invest in?

As a lead sponsor, our primary market sits where our acquisitions and operations team is located: Greenville, SC. With nearly 500 units owned and operated in this market, we believe our intimate knowledge of the area is the key competitive advantage offered to our investors.

Greenville, SC, was recently rated the #1 Tertiary Multifamily Market in the U.S. It’s predicted the entire Upstate region will continue to experience strong population and job growth over the next decade.

A major contributor to the Upstate’s robust development is Greenville’s award-winning, walkable downtown, which is attracting new residents from major metropolitan areas and is the region’s cultural center. Other significant drivers of sustained growth include:

  • The city’s location along I-85 (between Charlotte and Atlanta), which provides significant transportation and logistics employment.
  • A solid manufacturing base led by BMW and Michelin.
  • Two major hospital systems, which provide excellent medical services to the region.
  • Downtown Greenville’s thriving tourism industry, which provides employment in the leisure and hospitality sectors.

This diverse economic base provides the foundation for profitable investment opportunities.

Are multifamily syndications recession resilient?

Yes, we believe so. People will always need places to live; therefore, the demand for housing — particularly affordable and high-quality housing — will remain high even during a downturn.

At Spark Investment Group, we invest in high-quality A and B Class apartment communities located in great neighborhoods. Investments in this asset class tend to be lower risk because the tenants are more financially secure.

This investment strategy ensures that occupancy and Net Operating Income (NOI) will remain high even during a recession, mitigating risk and protecting your investment.

Will my investment be safe?

At Spark Investment Group, capital preservation is our #1 priority. Above all else, we do everything in our power to protect your hard-earned money.

While there are no guarantees with any investment, to protect your capital we ensure that every deal has plenty of reserves, ample buffer, and multiple exit strategies in place.

What are the tax advantages of investing in syndications?

We highly recommend that you consult with your own CPA to obtain the most accurate tax information for your unique situation.

As a real estate syndication investor, you’ll gain the tax benefits of property ownership, including accelerated depreciation and cost segregation, which can help lower the taxable passive income you receive.

Each year, you’ll receive a Schedule K-1 tax form to include with your tax filings. This form reports your income and losses for the investment.

If you happen to be a real estate professional, you may be able to apply these paper losses to your ordinary income as well. Again, please consult with your CPA for details related to your specific financial situation.

How do I get started?

Getting started is easy! Take the first step by registering with the Spark Investor Club. We’ll reach out to you, take some time to get to know you and discover your investing goals. Then, when we find an investment opportunity that matches your objectives, we’ll share the details with you!

Note: Registering with the Spark Investor Club is free and there are no commitments to invest.