Physicians & Specialists
Retirement contributions are capped and additional income is taxed at the highest marginal rate. Little within a conventional portfolio offsets it.
Ownership in Multifamily Assets, without the operating role.
Preferred Capital Partners acquires and operates apartment communities across the Sun Belt. Limited Partners hold an interest in the underlying real estate — quarterly distributions, depreciation and participation in appreciation — with no role in day-to-day management.
15–20%Target annualized return (ARR)
7–10%Target cash-on-cash
1.8–2.2xTarget equity multiple
3–7 yrsTarget hold period
The Investors we work with.
Our Limited Partners are Physicians, Business Owners, Senior Operators and former direct Landlords. They arrive from different professions with a consistent set of constraints, none of which a conventional portfolio addresses.
Founders & Business Owners
A substantial share of both net worth and income sits within one operating business, concentrating exposure to a single enterprise.
Engineers & Tech Operators
Compensation is weighted toward equity in the same sector that provides the salary, so both move together and neither offsets the other.
Recent Sellers & Inheritors
Proceeds from a sale, distribution or inheritance are held in cash while real value erodes over the period the allocation decision remains open.
Landlords Who Are Done Managing
Existing rental ownership has already demonstrated the economics. The leasing, turnover and maintenance obligations are the constraint.
They are all Accredited
Every Investor is verified by a third party before they see an offering. This is a requirement of Rule 506(c).
A five-year horizon
No Investor in the base requires this capital in the near term. That shared horizon allows assets to be held through a weak quarter rather than sold into one.
No operating role
Limited Partners hold the ownership, the income and the depreciation. Leasing, capital works and property management remain the responsibility of the firm.
Workforce housing in the markets people are moving to.
We do not pursue trophy assets or speculative development. We acquire fully-occupied 1980s–2000s apartment communities in Sun Belt metros with employment growth, sustained in-migration and a structural shortage of housing at that price point.
Demand that doesn't depend on optimism
Housing is the last expenditure a household reduces. Workforce apartments in supply-constrained submarkets have historically sustained occupancy through cycles, as the alternative — ownership at prevailing mortgage rates — carries a materially higher monthly cost.
Value we create, not value we wait for
Returns are generated through a defined business plan: unit renovation on turnover, professional management, control of operating expenses and growth in net operating income. Valuation follows income.
A conservative debt structure
Fixed or rate-capped agency debt, capitalised reserves, and no short-term financing maturing inside the business plan. The objective is that a difficult two years does not become a permanent loss.
How it works.
Introductory call
A short conversation covering your objectives, time horizon and the structure of our offerings.
Accreditation & portal access
Because this is a 506(c) offering, accreditation is verified by a third party — your CPA, attorney, or an automated verification service. Then you get portal access to the full offering materials.
Review & subscribe
The offering memorandum, financial model and operating agreement are provided for review with your own advisors. Subscription is completed electronically.
Own, collect, report
Distributions commence in the quarter following stabilisation under the business plan. Quarterly reporting is issued throughout, with annual K-1s by 31 March.
Sources of return.
Returns on a well-acquired apartment community arise from four separate sources.
Quarterly cash flow
Rent collected, expenses paid, debt serviced — what's left is distributed to owners each quarter, targeting a 7–9% annualized preferred return.
Depreciation against your income
Your K-1 passes through your share of depreciation — often accelerated via cost segregation — which can shelter a meaningful portion of the distributions you receive.
Forced appreciation
Apartments are valued on income. Every dollar of net operating income we add through renovation and better operations multiplies into property value at exit.
Loan paydown & inflation hedge
Residents pay down the mortgage on an asset you own, while leases reprice annually — so rising costs flow into rents instead of eroding your position.
Yes. Our offerings are made under Rule 506(c) of Regulation D, which limits participation to accredited investors and requires that accreditation be verified by a third party rather than self-certified. Generally that means individual income above $200,000 (or $300,000 jointly) for the past two years, or a net worth over $1 million excluding your primary residence. Certain professional licenses also qualify.
The minimum is $100,000, and capital should be considered committed for the full hold period — typically three to five years. This is an illiquid investment. There is no public market for the interests, and redemption before a sale or refinance is not available. Only invest capital you will not need during the hold.
Distributions are paid quarterly by ACH once a property is producing cash flow under the business plan, beginning after an initial stabilization period disclosed in each offering. You receive a preferred return before the sponsor participates in profits. At sale, remaining proceeds are distributed according to the waterfall set out in the operating agreement.
You'll receive a Schedule K-1 for each tax year, reflecting your share of income, expenses, and depreciation. Because real estate depreciation is a non-cash expense — often accelerated through a cost segregation study — the taxable income reported to you is frequently lower than the cash you received. We are not tax advisors; review every offering with your own CPA.
You hear it from us first, in that quarter's report, with the numbers and what we're changing. Distributions may be reduced or paused to protect the asset — that decision is disclosed and explained, not buried. Capitalized reserves exist precisely for this. Real estate investments can lose value, including the total loss of invested capital.
Yes. Investors commonly subscribe through a self-directed IRA, a solo 401(k), a revocable trust, or an LLC. Note that debt-financed real estate held in a retirement account can generate unrelated business taxable income (UBTI) — a conversation worth having with your CPA before you subscribe. We'll walk your custodian's paperwork through with you.
