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The FAQs
Here are the questions we get the most. If you don't see what is on your mind please reach out, we are here to help.
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How do I access the offerings?Great question! If you click on “Invest with us”, you will be directed to the registration for our investor portal. Answer a couple of short survey-style questions about your contact information, whether you’re an accredited investor, the details of your investment objectives, etc. Once you submit, we will review to verify your account and grant you access to our platform.
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How do I get in contact with Griggs Capital Partners if I have questions?Another fast ball! You can contact us in several ways. 1. Email us at alex@griggscapitalpartners.com 2. Call us at (832) 531 – 3970 3. Fill out the contact form under “contact us” on the website 4. Register on our investors portal by clicking on the “Partner with us” button They all go to a real person, I promise. We look forward to connecting.
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What are the next steps?Another great question! We encourage every potential investor to educate themselves and seek out resources that will help them achieve their investment goals. If you are new to private, large scale commercial real estate investing then we encourage you to contact us and we will walk you through our “new investor guide”. If you are looking for direct access to our offerings than partner with us by registering in our investor’s portal. It is best to start any conversation early, we are here to help whether you invest with us or not.
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Am I guaranteed a spot in an offering once registered?Each offering has a limited number of investment openings and work on a first come first serve basis. We actively communicate upcoming opportunities through our investors portal and encourage individuals that are interested to register so that they can get in early.
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What is the minimum investment amount?The minimum investment can range between $25,000 and $100,000 depending on the offering. The investment minimum serves two purposes. First, we provide access to private capital opportunities which have different rules under the SEC than publicly traded funds, which can limit the number of investors per offering. Second, we like to engage directly with our investors in order to ensure their success which means more hands on and less auto emails.
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How often are distributions made?Distributions are typically made monthly or quarterly and are specific to the business plan of each deal. It is important to understand how each individual offering is structured by reading through the investor materials, watching the webinar and asking questions. You are doing a good job so far.
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Can I use my retirement funds (IRA or 401k) to invest?Yes, you can use your self directed retirement accounts to invest in our offerings. While this can be a very attractive means to diversify your retirement funds and bolster returns there are several things to consider. We suggest consulting a CPA to understand your specific situation. You can also reach out directly to hear our thoughts on what might be worth discussing with your advisor.
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What kind of returns can I expect?We target a minimum IRR of 15% - 20% on our properties, doubling the initial value of our investment roughly every 5 years. While there are risks in every investment, we strive for consistency through our conservative underwriting process which focuses on our ability to strategically add value in any market. If you want to learn more about our detailed strategy and investment criteria, or have already read the “new investor guide” and are looking for more, please contact us.
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Are there any management fees?We do not charge any upfront or performance-based fund management fees. Our primary incentive comes from parallel investing and profit sharing with our limited partners. There are two typical “fees” that you will see on most syndication structures which are tied to the purchase and management of the asset. Acquisition fee: A one time fee, typically 1% - 3% of the purchase price to cover sourcing costs Asset management fee: An annual fee, typically 1% - 3% of gross rent paid through cash flow of the underlying asset to cover to business plan execution costs such as overseeing property management, construction, financial services, investor relations, etc.
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How are my funds allocated?Your funds as a limited partner are allocated to the specific offering in which you are investing. In exchange, you are provided a preferred equity stake in the syndication that is tied to the performance of the underlying property. We do not allocate a single investment across multiple properties as each has its own specific equity units defined by the syndication.
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Can an investor access their funds in case of an emergency?While there is no public market or secondary exchange available for your invested funds, we know that life happens and believe in a true partnership with our investors and work with them on a case by case basis.
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Do I need to be an accredited investor?We work with both accredited and non-accredited investors to ensure our products are the best fit their investment goals. Non-accredited investors must have knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investments. Most individuals that have previously engaged in private placements, purchased securities or have invested in real estate meet this criteria.
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When will I get my money back?In addition to cash distributions, capital is returned to investors at the time of sale or refinance. On average we expect to hold our properties for roughly 5 years to meet our return profile, however this is specific to each offering. Check out the “new investor guide” if you haven’t already to get a better sense of an example return profile.
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What is a syndication?A syndication is a fancy word for a group of two or more investors or investment companies coming together for a common goal. In many cases and syndication acts just like a business in its operation and financing. The syndicate consists of General Partners (GPs) and Limited Partners (LPs) which typically participate as follows. GPs: Manages the entire deal from sourcing of the property to sale Participates as a non-preferred equity partner Can also invest and participate as an LP Provides risk capital in the form of earnest money and due diligence expenses Guarantees the loan Implements the business plan through asset management and capital programs LPs: Provides capital to fund the equity portion of the deal Participates as a preferred equity partner Passively invests, receiving cash distributions and return of capital Limited liability; no risk capital or loan guarantees No management responsibilities
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What is an accredited investor?To be qualified as an accredited investor you must meet one of the following criteria as outlined by the SEC. Has an income of $200,000 over the last two years (or $300,000 jointly with a spouse or spousal equivalent) and reasonably expect to satisfy the same criteria in the current year. Has a net worth of over $1,000,000, either alone or together with a spouse or spousal equivalent (excluding the person’s primary residence). Holds a Series 7, Series 82, or Series 65 financial services license and is in good standing.
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What are the risks?While private, large scale commercial real estate is generally considered to provide many risk mitigating benefits, no investment is guaranteed. It is essential for you to understand the specifics of each deal. Limited partners liabilities are limited to their principle investment which can include the risk of the property under performing the business plan or being subject to external market factors.
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What are all these words and acronyms?While we aim to speak plainly it is important to understand some of the common real estate investment vernacular. Check out our "new investor guide" which comes complete with a glossary to help you with those sleepless nights.
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