Create Passive Income

We all know we should be investing in real estate.

We allow you to do it alongside us.

How It Works

We Buy Properties

We work with our hand-picked partners to find great multifamily deals, negotiate the purchase, and finance the properties.

You Invest

Our hassle-free process allows you to become partners in the ownership of actual multifamily properties, without all the stress or time commitment.

We Oversee Ownership

We oversee the property managers, who collect the rent from tenants and manage the actual property.

You Receive Passive Income

We do all the work while you site back, relax, and enjoy the benefits of passive cash flow.

Our Buying Criteria

Target Markets

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Nationwide growth markets

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Midwestern and Southwestern U.S.

Asset Type

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B+ to C+ class multi-family properties

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Prefer B class in A market and C+ class in B market opportunities

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Will review distressed A class deals in markets with populations over 1 million people

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Minimum 100+ units

Financials

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$1 – $20 Million USD purchase price

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Minimum 7% CAP rate

Occupancy

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Prefer stabilized properties with minimum 85% occupancy

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Will consider lower occupancy if property is well located and has value-add upside

General Criteria

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Potential high yield income streams

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20% below replacement cost

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Cash equity – “all cash” or “Cash to existing debt”

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Value-add opportunities sought

Target Returns

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All investment returns vary based on the individual property.

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Minimum $50,000 investment (some opportunities higher)

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5-7 year hold period

Investor FAQ

Can I invest even if I am not accredited?
YES!!! Franco Acquisitions™ offers investment opportunities for accredited and sophisticated non-accredited investors. Due to SEC guidelines, we only publish Accredited investor projects to our website.

If you are non-accredited and would like to learn more about our investment projects, please fill out our investor application and we will contact you when we have non-accredited opportunities.

Can I invest if I am a foreign national?

Absolutely!  Let’s talk.

What kind of properties do you invest in?

We currently solely invest in multi-family apartment buildings, one of the most recession proof segments of the Real Estate Market, particularly with the United States population continuing to grow. Even with the continued advancements in online marketing (particularly Amazon) and “work from home” which threatens the retail and office markets, people will always need to live somewhere. Within this segment, we focus on B+ to C+ class multi-family properties and prefer B class in A markets and C+ class in B markets. We believe this positions us in the segment of the market that is shielded most from the ups and downs in the economic cycles. We will also review distressed A class deals in markets with 1MM+ populations.

How does Franco Acquisitions find apartment deals?

We have relationships with the vast majority of all commercial brokers in the Central and Eastern US, who bring us deals often before they go on the open market. We also occasionally engage in direct marketing campaigns and are constantly building relationships with banks to get access to their REO inventory. Once presented with an opportunity our team then underwrites every single property to the highest standards and eliminates those that do not qualify at our rigorous standards. As an example last year our team underwrote 726 properties and with only a little over 20 qualifying for our stringent standards.

How much are the properties leveraged?

This is an exciting point. Over a 5-year period it is our goal to have our properties not be more than 50-60% leveraged. While we start out with a 75%-80% leverage based on purchase price, we decrease that ratio rapidly by actively paying down the loan and by forcing appreciation of the property through value add improvements, superior management, and rent increases, leading to a 5-year loan to value ratio of no more than 60%. This conservative approach provides additional buffer from the ups and downs of the real estate market.

How are Franco Acquisitions™ apartment deals structured?

You will be limitied liability owner of the property which comes with all the benefits like depreciation and cash flow, meaning the property is owned by a “Property LLC” for which that property is the only asset (reduces liability). You in turn will be a direct shareholder in this Property LLC so in essence you are part owner of the company that owns the property. This allows for a direct flow-through of cash flow, depreciation, and allows you upon sale of the asset to realize long term capital gains … PLUS, you literally get to tell your friends you “own” an apartment complex, because you do.

Can I invest with my retirement plan?

Yes, investing in Multi-family in a structure like ours is perfect for retirement plan investing because your involvement is by definition passive. All you need to do, if you haven’t already, is set up a SELF-DIRECTED IRA with an independent custodian, like Diredted IRA, Specialized IRA Services, or Vantage IRA, and once that is done you can invest using your IRA/401K/ROTH-IRA… or several other self-directed retirement account forms.

What will my return on investment be?

All our investment and Private Placement Memorandums are based on individual properties, and every property is different and will therefore offer different returns. 

Our returns typically consist of two parts:

Preferred Return from Cash Flow:Each investment is selected such that it pays an minimum average annual preferred return of at least 6% (depending on the individual property deal this could be higher than that) which is paid out quarterly via direct deposit into your bank account or by check. In other words, the investors get paid first before the sponsors get paid anything. This protects you as an investor and makes sure we only pick projects that have strong cash flow outlooks.

Profit Share/Back End Profit: Upon a Sale or Refinancing of the property it is our goal to return 100% of the initial invested amount to each investor, and then do a profit split between sponsors and investors.

Can I invest if I am new to real estate investing?

Yes! We’re here to guide you and can provide educational resources that will help you confidently make smarter investing choices.

How do I get started?

You can get started as an investor with Franco Acquisitions™ by completing an online investor application here.

What is the difference between this and a REIT?
When you invest in a REIT, you are buying shares in a company, just like when you buy shares in a stock. You do not own the underlying real estate, you own shares in the company that owns those assets.

When you invest in a real estate syndication, you are investing directly in a specific property. Together with the other limited partner investors and general partners, you will own the entity (usually an LLC) that holds the asset. Thus, you have direct ownership.

When you invest in an apartment REIT, that REIT will likely own and manage a lot of apartment buildings in multiple markets across the country. With a real estate syndication, you are investing in a single property in a single market.

With a REIT, you can invest a very small amount of money, just like a stock. Syndications typically have higher minimum investments, often $50,000 or higher.

When you invest directly in a property through a real estate syndication, you get the benefit of a variety of tax deductions, including depreciation. In some case those tax benefits can be quite substantial. The depreciation benefits often surpass the cash flow, so you’re showing a loss on paper while you’re actually getting positive cash flow. Further, you can use those paper losses to offset your other income, like income from your job.

When you invest in a REIT, because you’re investing in the company and not directly in the real estate, you do get the benefits of depreciation, but those are factored in before you get your dividends, so you don’t get any tax breaks on top of that, and you can’t use that depreciation to offset any of your other income. Andany dividends are taxed as ordinary income, which can contribute to a bigger, rather than smaller, tax bill.

When should I expect my first distribution?
It varies from property to property, but in general as a LP (Limited Partner) you should expect to receive a cash distribution on a quarterly basis, and then also upon an exit event. The first quarterly cash distribution is typically a short time after the end of the quarter in which the property closes.

Units

Million USD Value

Years Experience

"After meeting Debbie, I got the clear sense that she surrounds herself with people of integrity, morals and ethics. Her background in IT/Cybersecurity and leadership positions held in this industry, strongly aids in her ability to seek out answers and mitigate risk. As an expert at getting to know details through diligent questioning, the opportunity to invest my time and resources with her has been easy, lucrative and fun. I recommend that you get to know what Debbie has to share about how to secure higher than average returns for passive and consistent cash flow."

Danny G.

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Schedule a call to discover how we can help you enjoy passive real estate income without the stress and hassles of ownership!

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