Frequently Asked Questions

Investor FAQ

Can I invest even if I am not accredited?
No. Blue Bridge Capital offers investment opportunities for accredited investors.
How do I get started?

You can get started as an investor with Blue Bridge Capital by creating an account on our investor portal.

What kind of properties do you invest in?

We currently invest in recession resistant assets such as apartment buildings, self-storage unit properties, and mobile home parks. We find a combination of these three asset classes creates a strong portfolio in any economic environment.

How are Blue Bridge Capital Opportunities structured?

In most investment opportunities you will be a limited liability owner of the property which comes with all the ownership benefits like depreciation and cash flow. The property is owned by a “Blue Bridge Capital” entity for which that property is the only asset which reduces liability. You in turn will be a direct shareholder in this business entity 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 upon sale of the asset allows you to realize long term capital gains.

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 70%-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.

Can I invest with my retirement plan?

Yes. Investing in multifamily 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 Directed IRA, Specialized IRA Services, or Vantage IRA. 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 monthly/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.

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 or LP) 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 passive income. Please speak with your accountant regarding tax laws and the benefits of investing in these opportunities.

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. Any 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 or monthly basis within the first 90 days of investing, and then also upon an exit event.

Are You Ready To Invest Smarter And Make Your Investments Work Harder For You?

Create your account on our investor portal and then our team will connect with you to discover how we can help you enjoy passive real estate income without the stress and hassles of ownership!