FAQ Equity Partners
Frequently Asked Questions for Equity Partners*
How often will I receive returns and information on my investment?
The fund is set up to provide bi-annual distributions based on performance. Quarterly financial statements and a year-end Schedule K-1 for tax purposes will be provided by the independent accounting firm Lisa A. Tom, CPA. Additionally, you will receive quarterly reports directly from the accountant and a monthly newsletter.
Why did you choose this strategy?
We have spent over a year operating in the current markets and have analyzed hundreds of opportunities. As we are able to acquire higher quality properties at significant discounts, this strategy allows us to secure a quality portfolio of discounted properties with excellent cash flow, mitigate risk, and achieve superior returns. We strongly believe now is time to acquire properties at unprecedented discounts which will reap large returns when the markets stabilizes.
What criteria do you use to generate the numbers?
When establishing valuations and determining cash flow, acquisition/disposition price, we analyze numerous pieces of data including: last sale price, tax appraised value, renovation budget, most recent comps minus 10%, the bank’s take back price, and current market rent for like properties. We are ultra conservative in our calculations and projections.
What risks do I assume in this investment?
Because you are investing in a limited liability company, your liability cannot exceed the amount of your investment. One major component of real estate (as compared to stock, etc.) is that it is almost impossible for property to lose all value unlike other financial instruments. National REIS carefully selects properties in markets that can demonstrate stability.
What if you cannot sell properties within the projected timeframe?
Because we are diversifying across multiple properties at one time and securing the best possible price in the market place, exposure is limited and we are able to implement several exit strategies. Our primary strategy is to build a portfolio of quality cash flow properties at major discounts which allow us to dispose
of the properties at better than market pricing when the time is right.
Is my investment guaranteed?
While National REIS does not make any guarantees regarding the opportunities we are offering, we perform extensive due diligence on the properties that we acquire and utilize common industry methods to calculate the conservative potential of any investment.
What if something happens to a property or properties?
All properties are properly insured once acquired. National REIS also keeps an operating reserve to cover any unforeseen expenses. Each individual property is insured at market value not the purchase price.
What is the experience level and background of National REIS management and your team?
Chris Urso, Principal, has been investing in real estate since 2002 and has been involved in all aspects of residential investment property. Chris is currently successfully managing National REIS Equity Partners I, LLC. Our team members include experienced investment advisors, project managers, rehab specialists, realtors specializing in REOs and various industry professionals who assist us in every phase of a project.
How does National REIS benefit from the partnership?
National REIS brings real estate knowledge and experience to this opportunity to maximize the chances of its success and share in the wealth created for our investors. As is the case in most real estate ventures, the managing member, National REIS, will receive a minimal acquisition fee per property for our activities. Then and only after the investors receive a minimum of 10% cumulative return on their investment will National REIS share in cash flows and sales proceeds from the properties.
Are there any fees deducted from your clients’ return?
There is an acquisition fee of no greater than $5,000 per deal to National REIS (Manager). However that is built into the specific deal and deducted out of profit; accounting fees are an expense of the Company.
Can I receive my initial capital earlier than the “note” maturity date?
You do not receive a note. You are in an equity position and the entity is being managed on a 3 year timeline. In the event of emergency you do have the right to sell your units (with the Manager’s approval).
Can you provide me with historical investment performance?
You are welcome to view the exact numbers of the most recent executed deals.
If this investment is for a hard real estate asset, can I visit the property?
You are welcome to come tour our markets and meet our teams to view the projects that are being worked on at any time.
I am interested what do I do next?
If you have made the decision to join the partnership your investment is confirmed once the funds are in the possession of National REIS. Participation will be determined on a first come, first served basis. For more information or to set up an appointment with Chris, please contact Maria Meyer at mmeyer@nationalreis.com or call 516-280-7674.
National REIS, LLC
c/o Chris Urso
570 Main St 2nd Floor
Westbury, NY 11590
*The information contained herein does not constitute an invitation or offer to sell, invest or deal in or a solicitation of an offer to purchase, invest or deal in any securities in the United States of America or in any other jurisdiction.
