Investing 101
Why real estate is considered a stable asset class
Multifamily real estate investing means pooling capital to own and operate apartment communities. Instead of buying a single rental unit, investors participate in larger-scale properties where income is generated through rents, and long-term value is created through appreciation and professional management.
Why real estate is considered a stable asset class
Real estate has historically been a resilient investment because it’s backed by a tangible asset — the property itself. Multifamily housing is in consistent demand, providing investors with steady income potential and protection against inflation while also offering the possibility of long-term growth.
Key terms every investor should know:
- Equity – Your ownership share in a property investment. Equity investors participate in both ongoing cash flow and potential profits when the property is sold.
- Cash Flow – The net income generated after operating expenses and debt service are paid. For investors, this typically translates into regular distributions.
Appreciation – The increase in a property’s market value over time. Appreciation can occur naturally or be created through improvements and professional management.
- Cap Rate (Capitalization Rate) – A measure used to estimate a property’s return based on its income. It helps compare investment opportunities across markets.
- Preferred Return (Pref): A minimum return distributed to investors before the sponsor shares in profits.
- IRR (Internal Rate of Return) – A metric that calculates the total annualized return of an investment, taking into account both cash flow distributions and eventual sale proceeds. It’s often used to compare investment performance across projects.
- Hold Period – The expected length of time the investment will be held before the exit, usually 3–7 years in multifamily projects.
Investment Roadmap
- Investment Selection
Following a consultation with a designated Investor Relations Director, investors choose an offering that aligns with portfolio and financial objectives. - Accreditation
Accredited status is verified through a certified third-party service or via CPA, attorney, broker, or investment advisor attestation. - Commitment
After reviewing the Private Placement Memorandum (PPM) and selecting holding information, investors electronically sign the subscription documents. - Funding
Once accreditation is verified and the subscription is completed, investors fund their commitment by check or wire transfer. All funds are due prior to financial closing. - Financial Closing
Investors are notified via email as soon as the financial closing occurs. - Investor Updates
Post-closing, quarterly updates share construction and project progress. After the certificate of occupancy is granted, updates begin to include leasing activity. - Quarterly Distributions & Updates
When the project reaches stabilization—often during the lease-up phase—quarterly investor updates continue and distributions begin. - Refinance and/or Sale
At a refinance and/or sale, investors may choose to reinvest and roll proceeds into other Roers Companies projects.
Hear from Our Investors
Take a look at testimonials from current Roers Companies investors.
“I’m introducing family and friends to Roers Cos., that’s how much I trust in what our investments have done for us, and what I think they will do for us in the future.”
“Roers Cos. are people you can trust which is extremely important to me. They are also very straightforward and transparent with every investor.”
“I’ve been a part of ten different projects with Roers Cos. The performance has been very strong and based on the way they do business, I expect that performance to continue.”
“Roers Cos. is accountable and they’ve invested in their own projects, which tells you that they treat your investments just as important as their families’ funds.”
“Other investments have not produced the speed or the level of distributions like Roers Cos. has, and it’s because of their vertically integrated approach.”
How It Works
Accreditation
The SEC requires investors in private real estate offerings to be accredited. This means you meet certain income or net worth thresholds that demonstrate the financial capacity to participate in these types of investments. Accreditation is verified through a secure third-party service or with documentation from a CPA, attorney, broker, or registered investment advisor. Our team will guide you through the process to make it seamless and straightforward.
Funding Options
Once accreditation is complete and documents are signed, investors fund their commitment via check or wire transfer prior to financial closing. Our Investor Relations Directors will help ensure your investment selection aligns with your portfolio goals.
Rates of Return
Returns on multifamily investments typically come in two forms:
- Distributions – Quarterly cash flow once the project reaches stabilization (lease-up phase).
- Equity Gains – Potential profits realized at a refinance or sale.
While past performance does not guarantee future results, our offerings are structured to balance income potential with long-term growth. We provide transparent reporting and ongoing updates so you always know how your investment is performing.
Frequently Asked Questions
What is Cash-on-Cash Return?
Sometimes referred to as the cash yield, “cash-on-cash” calculates the income earned on the dollars invested in a property.
What is IRR?
Internal rate of return (IRR) is the annualized return metric that calculates both cash flow and equity returned over the course of the entire holding period.
How is Roers Cos. 19.9% realized IRR calculated?
This number reflects the rate of return averaged across the 19 Roers Cos. projects that have been realized — i.e., projects that have gone full cycle from construction, to operations, to sale.
What is real estate syndication?
Real estate syndication is a partnership of investors who collectively buy larger assets that may be unmanageable or expensive for individual investors. Usually, 25–30% of funds originate from both the syndicator and passive investors, while 70–75% comes from a lender or bank.
What does accredited investor mean?
An accredited investor is someone who meets income and net worth criteria set by SEC regulations. Accredited investors are allowed to participate in investments not registered with the SEC.
To qualify:
- You need an annual income of $200,000, or $300,000 combined income for two years, with an expectation of maintaining or increasing it this year.
- Your net worth must exceed $1 million, excluding your primary residence.
How can I invest?
Self-directed IRA: Clients may have a large portion of their net worth locked up in retirement plans. You can work with a custodian to roll a portion of your retirement account into a self-directed IRA, allowing them to invest in real estate to diversify your retirement accounts. We have recommendations on groups to work with if you’re looking for a self-directed IRA custodian.
Traditional cash investment: Investing after-tax money allows you to take full advantage of the depreciation benefits of owning real estate – without the hassle of to becoming a landlord yourself.
1031: We can accept 1031 exchanges into our projects if you want to take real estate where you are an active owner and exchange into passive ownership through our opportunities. Our minimum equity investment for 1031s is $1 million.
Capital gains/opportunity zones: For clients who have generated a capital gain through the sale of stock, a business, or real estate, we offer projects in qualified opportunity zones. This allows investors to defer their tax payment and pay no taxes on the sale of our project.
What is the average holding period?
Our hold period varies. Typically, we target a hold period of 3–5 years, although some deals may target as long as 10 years. The hold period is defined as the time between when the underlying property is acquired and when that property is sold and its proceeds are distributed to investors.
What does investor communication look like?
Roers Cos. initiates regular communication with our investors and strives for transparency in all of our partnerships. Investors receive monthly construction updates via email, quarterly asset management updates once a property is open and operating, and bi-annual investment portfolio review meetings — either in-person or virtual — with our investor relations team. Additionally, investors have access to a secure portal to view investment returns, subscription agreements, taxes, and distributions.
When are distributions paid?
For any project that is distributing, we send out quarterly distributions via ACH along with our quarterly letter from the Roers Cos. asset management department.
Do you have more investment options?
We do! Roers Cos. investment advisors work with you to build a custom portfolio designed to fit your goals and needs. Contact us to set up a no-obligation introduction call to get started.
Market Insights
Explore the latest news and insights from Roers Companies and take a closer look at the trends we’re seeing in the multifamily industry.