Ingram Capital

FAQS

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What is Ingram Capital and how does it work?

Ingram Capital, a private and well-capitalized real estate investment firm founded by Bryant Dawson, has a vision to help clients achieve superior risk-adjusted returns through strategic real estate acquisitions nationwide. Our aim is to also build income resiliency and financial freedom for our clients and their families. Ingram Capital is funded by investment partners seeking a balance of strong cash flow and equity growth.

By purchasing, effectively managing, and efficiently operating a diverse portfolio of real estate assets, we are able to distribute cash flow to our valued investment partners.

With Ingram Capital, what am I investing in?

Ingram Capital provides investors access to single-asset syndications and diversified real estate funds. These funds can include a variety of income-producing properties, such as apartment complexes, mobile home communities, car washes, self-storage facilities, RV parks, and ground-up developments. By purchasing shares in our offerings, you become a direct equity owner in the LLC that owns the underlying real estate assets.

Am I investing in a fund or a project-specific syndication?

Ingram Capital offers a range of investment options, including funds and project-specific syndications, tailored to the asset and your investment goals. For each opportunity, Ingram Capital will clearly specify the asset type and investment structure, ensuring you have complete information about the investment.

Who is eligible to invest with Ingram Capital?

Real estate funds and  syndications are subject to various laws and regulations. Depending on the specific offering, a fund or syndication may be open to “accredited investors” or a combination of “accredited” and “sophisticated” investors.

The Securities and Exchange Commission (SEC) defines an accredited investor as someone with an annual income of at least $200,000 ($300,000 joint) or a net worth of $1 million or more, excluding their primary residence. Visit the SEC website for more details on this designation.

Offerings limited to accredited investors are known as “506(c) offerings.” In contrast, “506(b)” offerings are open to both accredited and non-accredited “sophisticated” investors. These sophisticated investors must have sufficient knowledge and experience investing in assets like oil, precious metals, or real estate. They should be able to evaluate the investment and make an informed decision.

Additionally, non-accredited investors in a 506(b) offering must have a “pre-existing substantive relationship” with the General Partner presenting the deal. The SEC does not define this term, so Ingram Capital takes a hands-on approach to vetting and onboarding investment partners. We want to get to know you, your goals, your investment history, and how we can best work together to help you achieve your objectives. Our aim is to form a true partnership, not just take your investment.

How (and when) are investors paid?

As an investor in a real estate fund or syndication, you can receive returns in three primary ways: cash flow distributions, capital returns from refinancing, and proceeds from the eventual sale of the property.

First, distributions represent the profits generated by the property’s operations. When the fund or syndication is profitable, you’ll receive a share of those profits as periodic cash flow, often paid monthly, quarterly, or semi-annually. The amount and timing of distributions can vary depending on the property’s business plan and stabilization timeline. For example, a property requiring significant capital improvements may take longer to start producing stable distributions compared to a more stabilized asset.

The second way to receive returns is through a refinancing event. By increasing the property’s net operating income over time, the general partner can refinance the asset, pay back a portion of the initial investor capital, and place new debt on the property. This can lead to an “infinite return” scenario, where the investor has recouped their original capital but continues to receive ongoing cash flow distributions.

Finally, investors get paid when the property is sold. From the sale proceeds, the general partner will pay off any remaining debt, return any outstanding investor capital, and then distribute the remaining profits based on the equity positions.

OTHER REALLY IMPORTANT QUESTIONS TO CONSIDER

Can I invest with my self-directed IRA or other retirement account?

ABSOLUTELY! Many of our investment partners have successfully used this effective strategy when investing with Ingram Capital. We would be happy to provide you with more information – simply email us at info@ingramcapital.fund.

Why invest with Ingram Capital?

Real estate investments can offer investors a variety of potential benefits over other investment options. Here are 5 key reasons why an investor may consider real estate:

Risk: While all investments carry some risk, real estate often presents lower-than-average risks compared to other asset classes.

Returns: Real estate investments routinely generate average annualized returns greater than 10% – a true net return after accounting for taxes, fees, and inflation. This is significantly higher than the average 2% real growth of the S&P 500, which is often obscured by the commonly cited 8-10% gross returns.

Passive Income: Real estate investing provides resilient streams of passive income that are not tied to a day job. This supplementary cash flow can be a lifeline if you were to lose your primary source of income.

Tax Benefits: Real estate investors can leverage depreciation to show a taxable loss, which can be used to offset other passive income.

Inflation Hedge: As prices rise, so does the value of real estate, making it an effective hedge against inflation.

Investing in real estate may be an ideal way to build the life of your dreams – independent of Wall Street and your employer. The combination of lower risk, higher returns, passive income, tax advantages, and inflation protection makes real estate a compelling investment option.

What are the risks of investing with Ingram Capital?

Every investment comes with risk, and Ingram Capital will be the first to acknowledge that. However, by learning the ins and outs of investing with Ingram Capital, each investor or potential investor can arm themselves with the knowledge to make informed choices they feel comfortable with, and learn how to strategically mitigate those risks. Knowledge is power, and so is having your time back when you become financially free.

Here are the key risks of investing in Ingram Capital’s syndications:

Knowing the Operator: Investing with Ingram Capital requires trust, as passive investors must inherently trust that the right team is in place to execute a business plan that addresses risks and produces returns. It’s crucial to ensure the operator has substantial experience and a proven track record to support their investment thesis and avoid costly mistakes.

Liquidity Concerns: When investing in Ingram Capital’s model, investors lose short-term liquidity, as their capital is tied up in an investment vehicle that commonly extends 8-10 years. However, Ingram Capital is committed to returning investor capital as quickly as possible, often through refinancing or sale events, and in the meantime, provides ongoing cash flow to investors.

Sensitivity to Market Cycles: Real estate, like any investment, is affected by market cycles. But Ingram Capital mitigates this risk by investing in assets that have historically performed well regardless of stock market conditions. Through conservative underwriting, vertical integration, and a focus on stable regions, they aim to shield investors from the volatility of market cycles.

Control: When investing in Ingram Capital’s funds or syndications, investors relinquish day-to-day control and decision-making to the operator. This is the nature of passive investing, where the stress of operations, strategic decisions, and issue resolution are handled by the Ingram Capital team, allowing investors to sit back and enjoy the growing streams of passive income.

Despite these risks, Ingram Capital believes that wealth-building is better suited to owning real assets than paper assets. With the right team and approach, they aim to help investors of all backgrounds achieve great things on their journey to financial freedom.

How does Ingram Capital typically structure its deals?

Investors have many important questions about the structure of Ingram Capital’s deals, and they are right to ask. When entrusting your hard-earned money, it’s crucial to understand your rights as a limited partner, the potential fees you may incur, and the timeline for getting your principal investment back.

To provide more context, here are the 5 key components of a typical deal structure:

The Legal Entity: Our funds and syndications are usually structured as limited liability companies (LLCs), with a holding company and local property-owning entity.

Equity Splits: Equity splits between limited partners (LPs) and general partners (GPs) often range from 70/30 to 80/20, with GPs earning a portion known as “carried interest” for structuring the deal.

Control and Voting Rights: As LPs, investors have limited involvement in day-to-day operations, but maintain voting rights on major decisions that impact their interests.

Return of Principal: Investors typically get their initial investment back through a refinance or property sale, often within 3-5 years.

Sponsor Fees: LPs may be responsible for acquisition, asset management, disposition fees, or other fees which help cover the operators’ costs.

The key is to focus on the overall returns (cash-on-cash, average annual) rather than just the equity split, and to ensure the interests of GPs and LPs are fully aligned.

What is the Investment Process?

Step #1: Register & Learn About the Opportunity

The best way to learn about Ingram Capital’s investment opportunities is to join our investor portal by filling out this form here. Become an investment partner to get started!

You can also join the Wealth Revolution for regular updates and educational content.

Step #2: Express Interest via a “Soft Commit”

If you’re interested in any open opportunities, the next step is to express interest in the opportunity by making a “soft commit” in the investor portal.

A “soft commit” doesn’t put you on the hook yet, but it does give us an idea of who has expressed interest to invest in the opportunity.

Step #3: Satisfy the Minimum Requirements

Next, we double check that you are either an accredited or sophisticated investor. (You can refer to the FAQ “Who is eligible to invest with Ingram Capital?”).

If you are not an accredited investor and we are not yet familiar with you, we may ask you to wait for the next available opportunity. Alternatively, we may be aware of other opportunities open to both accredited and non-accredited investors. Remember, SEC guidelines stipulate that a “substantive relationship” must exist between passive investors and Ingram Capital.

Step #4: Make a Formal Investment “Offer”

Those who raised their hand with a “soft commit” now have the chance to let us know they are serious. At this point, you promise a specific amount of money to the opportunity.

Step #5: Review and Sign the Legal Documents

At this point, you will receive the operating agreement, a document outlining the parameters of the partnership. It breaks down the role of the General Partners (GPs) and Limited Partners (LPs), explaining who is responsible for what decisions. The operating agreement also covers profits and splits.

Once you looked through the legal documents, you sign them online via DocuSign.

Step #6: Wire the Money into the appropriate account

After signing the agreement, you’ll receive the wiring details to fund your investment. Congratulations, you are now a limited partner in an Ingram Capital opportunity!

Step #7: Wait Until Closing

Now, you sit back and relax. We’ll provide updates as the process moves forward and we close deals.

When working with other general partners (GPs), inquire about their specific investment process and your responsibilities as a passive investor, as their system may differ from what you’re accustomed to.

How can you evaluate if Ingram Capital is the right partner for you?

If you’ve decided to invest passively in an Ingram Capital opportunity, you should ask us a series of key questions. This will help you thoroughly vet the integrity of the our team, assess whether our investment strategy aligns with your goals, understand the specific deal we are raising capital for, and learn more about the target markets we operate within. Ideally, the answers to most of these questions should be readily available on the our website or in our offering materials. We offer full transparency in our process and encourage you to reach out with any questions!

Does any depreciation or losses get passed to the investor?

Yes! We typically perform cost segregation studies on all of our assets, allowing investors to benefit from bonus and accelerated deprecation.

What tax documents should I expect to receive?

We will upload your K-1 tax forms to your investor portal profile, making them readily accessible for you to download. Our aim is to deliver the K-1s before the March 15th filing deadline each year to ensure 3rd-party entities have time to file by the March 15th filing deadline.

What are the tax implications of investing with companies like Ingram Capital?

Investing in real estate funds or syndications can provide numerous tax benefits. We encourage you to work with a qualified tax professional to fully understand how real estate investing can impact your tax liabilities.

Can Ingram Capital accept proceeds from a 1031 exchange?

For investments over $500k, we may be able to accept 1031 exchange funds, though the added complexity and legal costs typically limit this option. If you’re interested, please contact our team at info@ingramcapital.fund.

What does Ingram Capital do?

Ingram Capital is a real estate syndication company focusing on multifamily real estate investments. We provide our investors with passive real estate investment opportunities to earn strong cash flow, appreciation, and tax advantages on their hard-earned capital.

How do I know if I am an accredited investor?

To find out if you are an accredited investor, click here.

What is the minimum investment amount?

Our minimum investment is 100K.

Are you accepting 1031 exchanges?

Please reach out to our team for more information. Pending availability, we may accept 1031 investments.

Can I invest with my self-direct IRA or other retirement accounts?

Yes! We accept investments in cash, a self-directed IRA, solo 401k, and eQRP.

How do distributions work?

Distributions will be paid out on a monthly basis. The distribution schedule will be outlined within the investment offering. We begin our monthly distributions after the property is stabilized.

How can I keep track of my investment?

Each investor will have their own portal. You can review your investment details and relevant documents at any time. Our team is here to help access and navigate you through the portal.

How do I get tax advantages?

As an investor with Ingram Capital, you will receive a K-1 for each investment that will show your gain or loss. Documents will be available on our secure investor portal.

 

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