A group investment where multiple investors pool funds to buy commercial real estate. A sponsor (like Grocapitus) manages the project, while investors earn passive income.

Projected returns are estimates of how much investors might earn from an investment over a specific period. These include cash flow distributions and profits from the property sale at exit. While based on market research and past performance, projected returns are not guaranteed.

Investors earn returns via two ways:

• Distributions from cash flow during ownership (typically paid quarterly).
• Profits from sale or refinance when the property is sold, and investors benefit from price appreciation.

Most syndication investments have a 3-5 year hold period depending on the type of investment. During this time, investors’ funds are illiquid, meaning investors cannot access their initial investment capital unless there is an early sale or refinance.

As with any investment, there are risks:

• Market downturns
• Vacancy issues
• Poor property management
• Interest rate increases

Grocapitus attempts to offset these risks via data-driven acquisition strategies and conservative underwriting.

No. Real estate syndications are not guaranteed and are subject to market risk. However, Grocapitus employs risk mitigation strategies and prioritizes transparency and investor communication so investors are informed during the investment period.

An accredited investor is someone who meets specific income or net worth requirements set by the SEC:

• Annual income of $200K+ ($300K with a spouse) for the past 2 years, or
  Net worth of $1M+, excluding primary residence
• An entity is considered an accredited investor if it is a private business development company or an organization with assets exceeding $5 million. Also, if an entity consists of equity owners who are accredited investors, the entity itself is an accredited investor.

This status allows access to certain private investments not available to the general public.

An unaccredited investor doesn’t currently meet the SEC’s financial criteria for accreditation but may still be eligible to invest in some types of offerings (like Regulation A or 506(b) offerings), depending on deal structure and relationship with the sponsor.

Yes, it is possible, but complex. Investors can invest 1031 exchange proceeds into a syndication using a Tenant-In-Common (TIC) structure or a Delaware Statutory Trust (DST). The syndication must be structured properly to comply with IRS rules. It is recommended that investors consult a CPA or 1031 intermediary for guidance.

Yes, through a self-directed IRA (SDIRA) or solo 401(k), investors can invest retirement funds in real estate syndications. This allows for tax-deferred or tax-free growth depending on the type of account utilized.

Set up a no-obligation Investor Call with Grocapitus’ Investor Relations Director to get started: grocapitus.com/investor-call.

You can also join Grocapitus’ Investor Club. Once a part of the Investor Club network, members receive access to webinars, educational material and special events based on your membership level. For access, please visit multifamilyu.com/club

The minimum investment for an accredited investor to join one of our equity syndications is $75,000. However, for first-time investors, we can accept a $50,000 minimum investment.

The process to register for an investment is via the Grocapitus Investor Portal. Login to the portal or create an account if you are a new investor with us. Follow the prompts to fill in your investment information and electronically sign documents. Once your spot is confirmed, the next steps will be to verify your accredited status. Upon completion of verification, the wire instructions will be supplied securely within the portal. Your funds are due in the bank within 10 days of spot confirmation. If you are funding via IRA, we can give you an additional 10 days if needed to work with your IRA company.

Investors can expect regularly scheduled updates, every month, for newly acquired value-add investments until they reach stabilization, and every two months for new developments. In addition to monthly updates, Grocapitus also hosts webinars on a regular cadence where management presents operating and financial results, in addition to an interactive Q&A session. Grocapitus also hosts investor-driven Q&A webinars where the entire webinar is allotted to investors’ questions.

Investors will also receive a K1, anticipated to be provided by March 31st following each year in which profits or losses are earned, securely uploaded to your investor portal.

Grocapitus focuses on high-growth commercial real estate, including:

• Multifamily (apartment and mid-market townhome complexes)
• Build-to-rent townhome communities
• Industrial and student housing in select markets

No. Syndications are passive investments. Our team handles all the heavy lifting—from acquisition to daily management to disposition—while investors receive regular updates and distributions.

Mission 10K partners with purpose-driven investors to build high-quality rental townhome communities for middle-class families. As families give up on owning a home, they need an alternative that provides essential amenities and an enhanced quality of life. Learn more at https://mission10k.com/

Elevation Development is the in-house real estate development arm of Grocapitus, specializing in ground-up construction and adaptive reuse of multifamily, build-to-rent, and commercial properties. Elevation focuses on high-growth markets backed by data and seeks to deliver strong investor returns via thoughtful design, cost-efficient construction, and strategic location selection. Learn more at: https://elevationredev.com/

Elevation develops:

• Build-to-rent townhome communities
• Mid-market apartment complexes
• Business spaces tailored to modern needs
• Student housing and other niche real estate

Each project is driven by demographic trends, market demand, and data modeling.

Our Rental Brand: With 25+ years of expertise in developing premier townhome communities, our team deeply understands the market and is dedicated to delivering top-notch properties tailored to our residents’ needs. Our latest mission: making mid-market townhomes accessible for more families. Learn more at https://liveequinox.com/

The biggest way in which we can stay ahead of our competitors when it comes to rent growth is to have a much larger database of rent comps or rent comparables.

Normally, companies will take a property and do rent comp analysis.

At any given point of time, only a small fraction of properties are available on the web, so they miss out on the big picture.

Using AI, we’ve been able to build a much bigger database of rent comps for our metros. So even if they’re not listed, we have access to them. This is extremely difficult to do without AI because it’s a manual and laborious process.

We use AI in all aspects of our business, but most especially, we use artificial intelligence to decide what cities and what neighborhoods to buy in.

There is so much demographic data out there that it’s very, very difficult to filter through that data because it changes on an ongoing basis.

By using AI tools, we are able to instruct AI to build very specific profiles that match success and a high return.

Those profiles allow us to execute very quickly, ignore the bad properties, because 95% of the properties out there are not profitable.

When we use different tools, such as CoStar, the report might be 110 pages. It takes a very long time for a human to go through 110 pages and to pull out all the intelligence necessary to make a good decision.

We don’t do that anymore. We basically take a 110-page report and we have trained AI to pull out insights.

It doesn’t just pull out insights from the current report about a certain property, it then compares it to a database of all the properties that we have included before.

And this comparative methodology allows us to rank the property in dozens of metrics, give them dozens of different weightages, and then have a roll-up score. We can do this in seconds where it used to take hours.

AI accelerates land selection because it gives us a great deal of information about each land parcel. So there are many public websites and also page software that have information about each land parcel.

We basically ask AI to go out to these locations and grab information and create scoring sheets for each parcel.

This greatly accelerates the speed at which we are able to evaluate parcels because we evaluate for 6,500 parcels a year.

It definitely reduces risk if you employ it correctly. If what you’re doing is using AI to give insights to human beings, you’re reducing risk. The truth is that we would require 10 times the manpower if we wanted to do the same risk analysis that we are doing with AI.

If you wanted to do it without AI, no company, not just ours, has the ability to employ that many people. By making humans smarter, giving them more insights, AI actually reduces risk.

For the moment, that’s not a challenge because AI is very limited in what it can do. All decisions are being made by humans. All discussions are being had by humans. These decisions are simply informed by AI. So AI is not making decisions today. It’s simply acting as an accelerator.

Our usage of AI is fairly new. We don’t have a great deal of data around this. But so far, what we are seeing is we are able to improve our occupancy dramatically by using AI to understand what our competitors are doing. Better targeting of properties from a quality perspective will certainly allow us to get back-end benefits when our properties sell as well.

So far, AI is not able to determine the area quality visually. Perhaps this will be fixed in the future. Human beings can tell the difference between an area that is thriving and an area that is declining. This is not something that AI has the ability to do at this time.

This is a challenge. As often, the AI will have incorrect data or hallucinate. And so we are building models to feed it and a second AI checks the first one. Then a human being verifies the results.

For the moment, that’s not a challenge because AI is very limited in what it can do. All decisions are being made by humans. All discussions are being had by humans. These decisions are simply informed by AI. So AI is not making decisions today. It’s simply acting as an accelerator.

The biggest misconception is that somehow we have access to some kind of magical data. It’s not about data. It is about empowering human beings with data that they would have access to anyway, but would have never been able to deal with such a massive amount of data.

So there’s no magical algorithm. It’s about applying AI to make humans better decision makers.

We are an EOS traction company and we have incorporated AI into our quarterly goals requiring all team members to have quarterly goals related to AI.

We do weekly AI Sparkle sessions where employees show off their use of AI to other employees, and that helps accelerate the use of AI in the company.

Finally, all executives have very specific goals tied to AI implementation.

Initial use of AI has been better for the acquisitions phase because the data there is more easily available. However, as time has gone on, we’re finding that we are now pivoting to use of AI in our operations and asset management, and we’re finding ways to use it across different properties in our portfolio.