Frequently Asked Questions

What kind of properties do you invest in?

We invest in multi-family apartment buildings, one of the most recession-proof segments of the Real Estate Market, particularly with the United States population continuing to grow. Even with the continued advancements in online marketing (particularly Amazon) and “work from home” which threatens the retail and office markets, people will always need to live somewhere. Within this segment, we focus on B+ to C+ class multi-family properties and prefer B class in A markets and C+ class in B markets. We believe this positions us in the segment of the market that is shielded most from the ups and downs in the economic cycles. We will also review distressed A-class deals in certain markets.

How much money do I need to get started?

We are currently reviewing our minimum Investment requirements.

Can I invest through my retirement plan?

Yes, investing in Multi-family in a structure like ours is perfect for retirement plan investing because your involvement is by definition passive. All you need to do, if you haven’t already, is set up a SELF-DIRECTED IRA with an independent custodian, like www.SpecializedIRAServices.com or www.VantageIRAs.com and once that is done you can invest using your IRA/401K/ROTH-IRA or several other self-directed retirement account forms. If you have questions about how to do that, please contact us through the Contact Us form or call us at (615.200.7076).

How does Castlewoods Capital find its apartment deals?

We have relationships with commercial real estate and mortgage brokers, who bring us deals often before they go on the open market. We also engage in direct marketing campaigns seeking property owners who are motivated to sell off market.  In addition, we are building relationships with banks to get access to their REO inventory. Once presented with an opportunity our team then underwrites every single property to the highest standards and eliminates those that do not qualify at our rigorous standards.

What will my return on investment be?

All our investment returns are  based on individual properties, and every property is different and will therefore offer different returns.  Our returns consist of three parts: Preferred Return from Cash Flow: Each investment is selected such that it pays an min. average annual preferred return of at least 8% (depending on the individual property deal this could be higher than that) which is paid out quarterly via direct deposit into your bank account or by check. In other words, the investors get paid first before the sponsors get paid anything. This protects you as an investor and makes sure we only pick projects that have strong cash flow outlooks. Profit Share: Upon a Sale or Refinancing of the property it is our goal to return 100% of the initial invested amount to each investor, and then do a 50/50 profit split between sponsors and investors.

How are the deals structured?

Great news. You will be limited liability owner of the property which comes with all the benefits like depreciation and cash flow, meaning the property is owned by a “Property LLC” for which that property is the only asset (reduces liability). You in turn will be a direct shareholder in this Property LLC so in essence you are part owner of the company that owns the property. This allows for a direct flow-through of cash flow, depreciation, and allows you upon sale of the asset to realize long-term capital gains … PLUS, you literally get to tell your friends you “own” an apartment complex, because you do.