Frequently Asked Questions

If you have any questions, please email us [email protected] or call us at 1-833-IWN-FUND, or text us at 1-713-503-8487.

Click the green Get Started buttons above depending on which type of investor you are! The entire account creation and investment process is completed online. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.

An accredited investor, in the context of a natural person, includes anyone who:

  • Has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current calendar year, OR
  • Has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
  • Holds good standing a Series 7, 65 or 82 license

On the income test, the person must satisfy the thresholds for the prior two years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period. The person may satisfy the threshold based on joint income for the years during which the person was married and based on individual income for the other years.

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • Any trust with total assets more than $5 million, not formed to specifically purchase the subject securities, and whose purchase is directed by a sophisticated person, OR
  • Certain entity with total investments more than $5 million, not formed to specifically purchase the subject securities, OR
  • Any entity in which all the equity owners are accredited investors.

In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

Most of these investments have an investment minimum of $25,000 to $50,000. Occasionally on larger deals the minimum could be as much as $100,000 but most commonly the minimum is $50,000.

Your biggest responsibility as a passive investor (limited partner) is choosing a syndication team/deal sponsor. Once you have done that and have found a deal that meets your investing criteria, your responsibilities as a passive investor are nominal. You do not have any responsibilities related to tenant management, repairs, or operations of any kind. The asset management division of the sponsor team assumes all responsibilities related to acquiring, operating, and ultimately disposing of (selling) the proposed deal. Throughout that lifecycle you can expect to be communicated with regularly (typically monthly or quarterly) along the same schedule as your monthly/quarterly distributions from the deal.


Just like the management of any investment you make in something like a mutual fund, there are always managers responsible for optimizing the performance of that investment and compensated accordingly. Syndication deals are no different. From sourcing the best deals, negotiating the deals, obtaining financing for a deal, raising capital, managing a deal throughout its lifecycle, and ultimately selling a property, there are a multitude of time and expertise intensive tasks along the way. Naturally, the managers responsible for making these things happen and contributing to the success of the project are compensated for these tasks. However, all of these fees are already calculated into the projected returns you see when evaluating a deal, so any projected cash on cash return/preferred return and IRR projections would be net of fees.

Most deals are structured to give the passive (limited partner) investors a preferred return of somewhere around 8% with a split of profits above this amount of somewhere between 70/30, 60/40, or 50/50 (limited partner/general partner) depending on the deal. 


A preferred return means the return the limited partner investors receive before the sponsor takes any share of the profits. This aligns the sponsor’s interest with the investor and incentivizes them to meet or exceed projections in order to profit from the operations of the property.


In addition to the preferred return, there will also be a similar split of profits upon any refinance of the property or upon the sale of the property. It is not unusual for the sponsor to consider a refinance of a property within a couple of years of purchase. By this time there has generally been a substantial increase in value of the property based on institution of the value-add plan and this equity can be extracted to give back a portion of each investor’s original investment while the investor still remains in the investment. Once the investor’s share of profit is returned upon the sale of a property it is not unusual to see annualized returns over that period of mid-teens to 20%.

Most syndication investments of this nature are underwritten to a hold period of approximately 5 years. As a passive investor you should expect to be committed for the entire duration of this projected hold period. Occasionally there might be opportunities to sell out of your shares in a deal to another investor but there is no guarantee of the availability or timing of that opportunity so one should be fully prepared to continue in a deal for the initial timeline projected at the start.

Like all issues tax related, you are always advised to consult with your own tax professional on this subject as it relates to your own individual situation. That being said, the benefits attributed to real estate ownership as an individual are generally passed through on a fractional basis the same way they would be if you owned a property individually. This includes the ability to use the depreciation deduction to reduce the taxable amount of your investment.

Yes, generally you are able to use retirement funds through a self-directed IRA (SDIRA) or Solo 401k plan. Self-directed retirement accounts allow you to invest in “alternative assets”, real estate in this case, but require you to use a different custodian of the retirement account that offers self-directed plans. Some large IRA custodians that you may be familiar with (Vanguard, Fidelity, T. Rowe Price, etc.) do not offer the option to invest in these assets through them, but there are plenty of options to choose from in the self-directed space for retirement accounts.  As well, you can frequently invest a combination of retirement and post-tax funds into a deal to meet the minimum investment (ex. $25,000 of self-directed IRA money and $25,000 of personal savings money). Check with your current custodian to see if they will allow you to self-direct your retirement account. If the answer is no, please contact a member of our investor relations team by email at [email protected], call us at 1-833-IWN-FUND, or text us at 1-713-530-8487, and we will introduce you to one of the custodians that we work with that will allow you to invest in alternative assets using your retirement funds.

That depends on which vehicle you decide to invest in. If you invest in our new accredited fund, you will receive a Form K-1. A Form K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Our goal is to finalize all Form K-1s annually by March 31st, however, we do rely on outside reporting and may require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns, but that is not our intention. If you invest in our new non-accredited vehicle, you will receive a Form 1099-DIV. A Form 1099-DIV is a tax form that records income earned from entities or persons other than your employer. For our non-accredited vehicle, it will record the amount of distributions you receive and whether those distributions are income or a return of capital. We will provide you with a Form 1099-DIV by January 31st each year.

To determine if passive investing is the ideal strategy for you, answer the following three questions:

  1. Are you busy with your full-time job and other life activities but still want to invest in apartments?

  2. Do you want the benefits of owning an apartment building but don’t have the time, capital and/or expertise to acquire one by yourself?

  3. Are you comfortable handing over control to an experienced team?

If you answered yes to all three questions, you would be an ideal passive investor. Hopefully this has helped you gain a framework for understanding how a multifamily syndication works and whether it might be a good fit for your investing strategy.

All investments involve risk, including those investments made in IWN Capital. We do not guarantee that you will earn our targeted returns. There are many factors that can impact the performance of your investment, many of which are not under our control. Please keep in mind, investing involves risk and may result in partial or total loss of your investment. Prospective investors should carefully consider investment objectives, risks, charges, and expenses, and should consult with a tax or legal adviser before making any investment decision.

We do believe that investing in private real estate poses less risk than many other types of investments. Private real estate has historically been less volatile than the stock market, and properties generally appreciate over time as inflation tends to push rents up. Additionally, we conduct extensive research and due diligence on every property investment and have a high degree of conviction that our risk is balanced with our targeted returns.