Why should I invest in multifamily real estate?

– Multifamily housing has a variety of benefits for investors, including predictable returns, single-asset ownership, and significant tax savings
– Real estate is very stable compared to the equities market
– Workforce housing is undersupplied around the country, very little new stock in the development pipeline, and demand is increasing

Why partner with LBC?

– Life Bridge Capital is committed to sourcing high-quality deals in growth markets
– LBC, through its founder Whitney Sewell, has a passion for adoption and gives 50% of his profits to those seeking to adopt
– Our investment portal provides a clean and transparent view of all investments, and automates the monthly dividend process

How have all your deals to date performed? Are you making distributions on all of them?

We are currently paying out the full preferred return on all LBC deals and have not missed a single dividend

Does Whitney invest his own money?

At Life Bridge Capital, each one of our GP’s invests in the deal right along with you. We don’t want to lose our money either! We take your money and your trust in us very seriously. We would not choose an asset if we thought there was significant chance of losing everything. Ultimately, we believe there is little chance of losing our money and instead a very high probability of creating more income. We want to be completely transparent and always encourage you to do your own research before making a decision.

What is a dual class structure?

A real estate syndication is typically broken down into two parts. The General partner side (that’s Life Bridge Capital) and the Limited Partner side (that’s you!). When you are investing as a Limited Partner, you are a part owner in a physical piece of property that will give you a return on your investment. Life Bridge Capital often uses a dual class structure in order to give you more options and to help you reach your goals faster. The dual class structure offers two options:
Class A Share-has a higher preferred return, generally around 9% or 10%. This is all you get for the duration the property is held.
Class B Share-has a lower preferred return, usually 7% or 8%. With this option, you get the additional benefit of sharing in the upside when the property is sold.

Hear Whitney speak more about this here:

How risky is my investment?

Any investment will have some risks involved. There is no guarantee to any kind of investment, whether that investment is in stocks, bonds, or real estate. However, multi-family real estate has proven to be one of the safest and most stable investment choices available. Risks are carefully outlined in the Private Placement Memorandum for each property. Life Bridge Capital works hard to mitigate any risk by having a careful process of uncovering devalued assets and turning them into profitable ones.

What markets does LBC invest in and why?

Life Bridge Capital has strategically chosen to invest in properties throughout the Rocky Mountains for numerous different reasons. Below are a few of the key factors that have driven LBC’s purchase and market decisions.
– Solid growth projections for states in this area, such as Colorado, Idaho, and Utah
– These states typically have lower regulations for businesses
-The cost of living in this area is generally on the lower side. Many people are looking for move out west, often away from the coast, but still desire the same quality of life, just at a lower price.
-This also leads to high population growth in the Rocky Mountain area, which translates to more supply for multi-family housing.
-Sam, our Property Acquisition Manager has a huge familiarity with the marketplace, as he currently lives in the area and knows unique factors that might go unnoticed by someone who is coming in from out of town

Hear Sam speak more about this here:

Am I an accredited investor?

You qualify as an accredited investor if one or both of these two things applies:
1.You have earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and you have a reasonable expectation of earning the same, or a higher amount in the current year
2. You have a net worth of over $1 million, either individually or jointly with a spouse (excluding the value of your primary residence)
For the first criteria, the person must satisfy the thresholds for the three years consistently either alone or with a spouse. For example, a person would not be able to satisfy two years based on an individual income than the next year with a spouse. The only exception is if a person gets married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.
In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. An entity qualifies as accredited if one of the two below criteria apply:
– any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
– any entity in which all of the equity owners are accredited investors.
In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

What if I'm only a sophisticated investor?

Life Bridge Capital does accept sophisticated investors. There are certain rules and regulations when it comes to sophisticated investors, but you are able to invest in some of our deals.

What is a K-1?

A K-1 is a tax form that is issued annually by any business that operates as a partnership, i.e. Life Bridge Capital! This form provides investors with detailed information on each individual investor’s share of the partnerships earnings, losses, deductions, and credits during the year. Once this document is received, the individual investor can use the information to report it on his or her tax returns.

Where and when can I find my K-1?

Your K-1 can be found within your investor portal! As an investor, you will receive an email with detailed instructions once this document is ready on a yearly basis. Our goal is to have your K-1 prepared and in your portal for you by March 31st of each year. However, we do rely on outside reporting which is largely beyond our control, and this can occasionally change the timing of when we are able to release these tax forms. We will always keep you informed and updated on each step of this process!

How do distributions work?

Once you have invested money with us, and signed all necessary paperwork, your work is done and your investment is completely passive! This means that you will receive money on a regular basis without needing to put any work in. LBC will manage the property, collect rent, and pay a distribution to each of our limited partners (that’s you!) on a regular basis. You will receive this regular distribution until LBC exits the property, at which time you will receive your full return.

When can I expect to receive my distribution?

For most of our properties, we will send out distributions on a monthly basis. You will receive money either straight to your bank account through an ACH payment, or through a mailed check, depending on your preference. You will receive this money consistently on the same day of each month throughout the length of ownership. You can typically expect to receive your first distribution within 30 days of closing.

What is LBC's property acquisition strategy?

At Life Bridge Capital, our main focus is on obtaining the best return for you, the investor, possible. One of the most strategic ways to do this is to look for and purchase properties that have significant growth opportunities. These properties may be older, look worn out, or have out of date amenities.
Our team is able to add value to these properties, by refreshing interiors, adding amenities, renovating units, etc. All of these things drive rent up to produce more profit, while still staying affordable for tenants

Hear Sam speak more about this here:

Q- Am I required to do any accounting for the mortgage interest for my investment or is it all in my K-1 that I receive at the end of the year?

A- All mortgage interest will be deducted and included in Box 2 of the investors K1. All income and expenses are in Box 2 of the K1

Q - Do I have to file taxes in the states I am investing passively in? If so, what are the filing costs I should expect?

A – If the syndicator is not filing a composite return, the investor may want to file a state return. That way their losses will carry forward to offset a future gain from the sale of the property. There are some states that require nonresident withholding when the property is sold, for example GA, so the tax owing will be paid for all when the property is sold so they would not have to file a state return. Some states don’t have individual filings. An investor would need to discuss all the options with their tax advisors. State returns can add up cost wise and each firm charges differently for them. We advise you to discuss the cost with your tax advisor but a minimum cost would likely be $250/state.