Frequently Asked Questions
Do the principals of the company invest with us?
Yes. CCI believes in building wealth alongside its investors. The sponsors pursue to invest anywhere from 5-10% of the equity needed in every deal. They reserve the right to invest more than 10% or less if liquidity purposes are needed to secure future deals.
How do I get started?
The entire process is completed online. Please create an investment account on our website and follow the investment steps. They begin by clicking “Invest Now”.
What are the requirements to invest?
You must be an accredited investor in accordance with regulation 506(c). This designation is to ensure investors have a certain level of financial and investment knowledge.
NON-ACCREDITED: Any person or entity not meeting the Regulation D Rule 501 definition.
ACCREDITED: For individuals, the most common standards are $1,000,000 net worth exclusive of home and furnishings or $300,000 per year married filing joint taxable income or $200,000 per year filing single. A complete list of the standards is available upon request.
What is the minimum investment?
Our current minimums are $50,000 – $100,000 depending on the project size and scope. We accept funds through multiple sources. Contact us for more details!
What is an accredited investor?
An accredited investor is an individual or entity that meets specific financial criteria and is allowed to invest in high-risk securities offerings not registered with regulatory authorities, such as the SEC in the United States. These criteria typically include a high income, substantial net worth, or professional expertise.
Can I invest through my IRA, LLC, LP, or Trust?
Absolutely! We allow investors to invest through traditional self-directed IRAs.
Investors are also able to invest through their LLC, LP, Trust, and additional entities at our discretion. These investments can be complicated. Please do not hesitate to reach out with any questions.
Do you accept 1031 exchanges?
Yes. On a case by case basis, CCI will accept a 1031 investment from known outside parties. Please schedule a call with us if you are considering utilizing a 1031 for investing.
What are the risks of investing?
Multi-family is often considered a stable and safe investment class but there are always risks with any investment. Our goal is to mitigate risks and make this a safe investment for our investors. We do this by building workforce (in-demand) housing in areas that are relatively under-supplied. We partner with local, experienced property management companies who understand the market and are able to optimize our properties in order to increase income and decrease expenses. There are zero guarantees in investing and may result in partial or total loss of your investment, but our team invests right alongside you, so rest assured, risk mitigation and investor returns are our highest priority.
How often should distributions be expected?
We typically distribute cash flow MONTHLY on all our projects once they are completed and reach 95% occupancy. It is at the General Partner’s discretion to determine distributions; They reserve the right to determine whether or not to distribute based on asset performance. Our partners make decisions that will benefit the asset and the investors most.
How long do I commit my money to this investment?
An investor can expect to commit their capital for 5-10+ years. This will depend on the strategic exit plan for each property. In each offering, we project targeted hold periods. These time periods may change depending on certain economic conditions. Our goal is to remain consistent and invest in assets for the long-term cash flow.
What kind of returns can I expect?
Each property will be a unique offering situation with returns that will vary. There is never a guarantee on the amount you will return on investment. Historically, Cornerstone strives to offer an Internal Rate of Return of 20%+ and Cash on Cash of 7%+. We seek every opportunity to maximize returns for our investors.
Can I cash out of my investment at any time?
We will work with an investor facing an unexpected need for a cash out through an internal process in order to sell your interest. We are unable to assure cash out, especially prior to a project reaching rent stabilization.
What type of tax documents will I receive?
You will receive a form K-1 for each investment for each of your investment accounts. These are completed by an independent 3rd party CPA firm each year. Our goal is to have these completed before April 15, but they may require additional time in a way that is to the best advantage of each of our investors.