Frequently Asked Questions

AmeriCan has many distinctive advantages that have helped achieve superior results while mitigating risk. They have been in the Dallas market since 2010 and were early to identify the opportunities that Dallas has offered and continues to offer. The principles have invested in various aspects of real estate since 1990. They have weathered multiple up and down real estate cycles and have been successful due to their conservative approach.

Another huge advantage is that they self-manage to ensure that the property is being taken care of from an owner’s point of view. This also allows them to drive the mission to transform lives by creating a positive social and environmental impact in the communities they purchase. This equates to happy residents thus, higher returns for investors as residents stay longer on average which reduces turn over costs. Their extreme efforts towards sustainability lowers utility costs and teaches residents that they can each make a big difference in this overall effort.

Our mission is to achieve above average returns for investors while transforming lives by creating a positive social and environmental impact in the communities we oversee, and to increase investor returns by lowering our costs due to our impact programs.

The past 10 years has taught us many lessons for the best ways to structure deals with our investors and ourselves as the General Partner. We realized an overhaul for the better was needed to create the best possible outcome for all stake holders. We now realize purchasing properties through a fund has multiple advantages. Let us begin with some significant advantages for our investors. Please keep in mind that each property purchased will be a single purpose entity that will be placed into the fund so they will have individual bank loans etc. The General Partners will invest their own capital as well as stated in the agreement.

Fund structure

Investor advantages in a fund: We have structured our fund so that we as the General Partner will not receive our carried interest until the 7% preferred return has been paid to our investors and 100% of our investor’s capital has been returned. We plan to have three to four properties in each fund so our investors will benefit from a “blended return from all of the properties”. This helps our investors realize we are truly aligning our interests.
General Partner advantages of investing with a fund: We will have enough capital raised in advance to go after great deals that need to close quickly and on time. When deals come up, a major question from the seller is “will this buyer actually close”. Our fund gives us an advantage when competing with other buyers.
Broker/Seller advantages when dealing with a buyer with a fund: Brokers and sellers will realize that we will close on quality deals that they bring to us with far fewer concerns than a competitor that does not have all of their capital raised in advance.

Financial waterfall structure of distributable cashflow:

100% of Investors initial investment returned

7% preferred return paid out to LP investors

80/20 split favoring our LP investors.

12-18% IRR 70/30 split favoring our LP investors

18+ IRR 60/40 split favoring our LP investors

Target IRR: High teens

Target equity multiple: 1.75x in 5 years.

The above waterfall splits make us very attractive to very sophisticated high net worth accredited investors that understand we have structured this so that our interests are aligned.

Of course, there are many additional advantages when investing in a fund and we are eager to explain them when we talk and get to know each other. Please don’t hesitate to schedule a call so we can provide clarity and provide additional benefits a fund can offer. Also, please be sure to watch a video of how our investors feel about us as the General Partners and our performance.

To invest in an AMAG opportunity, you must qualify as an accredited investor as defined by Canadian or US laws.

A Canadian Accredited Investor as partially described by Wikipedia is:

1. an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000; or
2. an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; or
3. an individual who, either alone or with a spouse, has net assets of at least $5,000,000

***It is highly advisable to seek Canadian legal advice as it relates to qualifying as an accredited investor.

A US Accredited Investor as partially described by Wikipedia is:

1. a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, or has assets under management of $1 million or above, excluding the value of the individual’s primary residence;^[1][2]
2. a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year;^[3] or
3. a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.”

***It is highly advisable to seek US legal advice as it relates to qualifying as an accredited investor.

AmeriCan Multifamily Alliance Group targets properties that will provide an overall IRR return in the upper teens and targets an equity multiple above 1.75x over a five year period for their investors.   Thus far, AmeriCan has consistently outperformed these financial numbers over the past 10 years in multiple projects. These returns are not a guarantee; however we feel our performance over the past ten years in the Texas markets speaks for itself.

Our track record has been very successful in the Dallas market and we feel it will continue. See our Case Studies section of the web site to view the performance that we are very proud of.

What we mean by Recycle Your Investment Money is that we will only buy properties that have a strong potential of returning most of our investor’s initial capital back within a 3-5 year period of time. This allows you, at your discretion, to place your returned capital into future projects over and over. So essentially, you are recycling the same capital to build wealth in multiple investments.

AmeriCan Multifamily Alliance Group adheres to a carefully constructed investment model centered on these guiding objectives:

Diamonds in the Rough

Acquire under-performing properties at a discount and with large appreciation potential. Properties must qualify for a quick refinance. This typically requires narrowing down 100+ prospective deals to one shiny diamond.

Forced Appreciation

AmeriCan only purchases properties that have great potential for increased value. These properties must have flaws that AmeriCan can fix and must possess multiple “value add” scenarios that can be monetized.

Community Impact

AmeriCan is leading a movement to transform apartment complexes into thriving, healthy communities by making positive social and environmental impacts as important as financial returns. AmeriCan consistently outperforms the market because its secret sauce of social and environmental responsibility causes “stickiness” within the communities. This translates to high tenant retention, elevated occupancy rates and increased rental fees, which, of course, help drive increased property values.

Refinance

A refinance event is absolutely mandatory. AmeriCan recognizes that refinancing is the ideal way to accelerate wealth and will work diligently to ensure it happens. The company has a 100% success rate in this regard.

Initial Capital Return

AmeriCan realizes the peace of mind and security that goes along with having the majority of investor’s initial capital returned, while maintaining ownership for long-term cash flow and appreciation.

Repetition

Leverage is an important advantage in real estate investing, and AmeriCan uses your same original capital again and again. Investors’ initial investment ultimately allows them to participate in ownership of multiple multifamily properties.

Once you reach out to us, we will be more than happy to schedule a call with you to answer any remaining questions you may have. During this call, we will also provide a presentation deck that outlines our investment strategy and approach in more detail. Our team is committed to ensuring that you have all the information you need to make an informed decision about investing with us. If you decide to move forward, we will ask you to fill out the appropriate documents to verify that you are an accredited investor. Our goal is to provide you with a seamless and hassle-free investment experience, from the initial consultation all the way through to the final investment decision.

We invest in the Texas market for a variety of reasons:

• The Texas market has the largest population growth of any state since 2010 which has been more than 2.5 million people.
• Texas is in the top 5 for job growth which includes several diversified sectors such as oil and gas, technology, health care, education, etc.
• Texas has no state income tax, lower business regulations, and lower labor costs (“right to work state”).
• Extremely Landlord friendly.
• Strong migration into the state.
• Many large companies have been moving into Texas.

For first-time investors, our advice is to take the time to learn about the investment opportunities that are available to you. We believe that the more you know about real estate and other investment options, the more confident you will be in your decision to choose us as your investment partner. While we are confident in our ability to provide exceptional returns to our investors, we want you to feel just as confident in your decision to invest with us. We are best-in-class operators, but we prefer that you do your due diligence and come to that conclusion yourself. This not only sets the stage for a great partnership, but it also ensures that you are making an informed decision that aligns with your investment goals and objectives. We are here to provide you with the information and support you need to make the right investment decisions for your portfolio.

When it comes to investing, there are many options available, but in our experience, real estate offers unique advantages over traditional stock market investments. Personally, I have invested in many stocks over the years and have always felt uneasy about how to pick the right ones and predict their performance. In my experience, the stock market can be too volatile, and it’s often difficult to determine why a particular stock or even an entire market sector may be performing well or poorly. It can be frustrating to see your portfolio swing wildly without any apparent rhyme or reason, which can make it feel like the wizard of Oz is behind the curtain. On the other hand, investing in real estate provides a tangible asset that you can see, touch, and even improve, which can lead to long-term appreciation and steady cash flow. Real estate investments can also provide tax benefits and can act as a hedge against inflation. Overall, we believe that real estate offers a more stable and predictable investment option for those looking to diversify their portfolio and build long-term wealth.

When it comes to the possibility of a looming recession, we believe that there will be significant opportunities for investors in the real estate market. As Warren Buffet famously said, “you can always tell who is swimming naked when the tide goes out.” We are prepared and ready to take advantage of opportunities to buy when the timing is right. With the slowing down of the real estate market, there will be ample opportunities to acquire quality properties at a discounted price. If you have ever felt like you missed an opportunity to invest in real estate, now is the time to act. We believe that a recession can be a prime time for smart investors to capitalize on great deals and build long-term wealth through strategic investments. Our team is ready to help guide you through this process and identify the best investment opportunities for your portfolio.

With rising interest rates, we believe that there will be opportunities to purchase properties below market value, and our team is well-positioned to take advantage of these opportunities as they arise. As interest rates rise, it becomes more difficult for some buyers to secure financing, which can result in lower demand and lower prices for properties. This creates a favorable buying environment for investors who are able to secure financing or who have cash reserves to make purchases. Additionally, as interest rates rise, some property owners may be motivated to sell their properties quickly, providing further opportunities for savvy investors to acquire properties below market value. Our team has the expertise and experience to identify and capitalize on these opportunities, and we are committed to helping our investors build long-term wealth through strategic real estate investments.

Our team is well-positioned to handle the higher mortgage payments that come with rising interest rates, as we see it as an opportunity to purchase properties at lower values. This strategy allows us to acquire great properties at discounted prices and build long-term wealth for our investors. Additionally, our investment strategy is bolstered by the low cost of living in the areas we invest in, which provides a more favorable environment for investors to generate cash flow from rental properties. We focus our investments in areas with strong job growth and rent growth, as well as a diversified economy. Texas, for example, has a larger GDP than the entire country of Canada, making it a prime location for real estate investments. We believe that our approach to real estate investing, combined with our expertise and experience, provides our investors with the opportunity to build long-term wealth through strategic investments in high-growth markets.

The length of time of the investment is projected to be between 5 years or less. We will have multiple properties in each fund so return of initial invested capital and profits will take place at various points within this time frame.

At our investment firm, we take risks very seriously. As seasoned investors who have been through multiple recessions, including the Great Recession of 2008, we know how hard it can be to lower risks while still maintaining great opportunities for superior returns. While there are always risks involved in any investment, we believe that our asymmetrical real estate investments offer superior returns with much less risk than similar opportunities. As an LP investor, you should be aware that there are no guarantees, and you could lose your investment. However, we feel that leaving your money in the bank is actually riskier in the inflationary market we are currently experiencing.

To reduce the risk of our investments, we buy undervalued properties and create value through our forced value-add plan. We also self-manage our projects and have in-house construction teams, which makes our projects much less expensive. While we are not builders or stockbrokers, we are a great asset class that should be included in a well-diversified portfolio. So if you’re looking for an investment that offers superior returns with less risk, we invite you to consider our real estate investment opportunities.

Creating a Positive Social Impact is truly a secret sauce to our success.  We make decisions that are not only in the best interest of our investors, but also for our residents.

AmeriCan Multifamily Alliance Group is on a mission to create a Positive Social Impact within our communities. We purchase C class assets which often house families who are lower income and have suffered very difficult lives. We focus on two community events per month which include Holiday Parties with gifts for the children, Turkey Dinner for Thanksgiving, Halloween Haunted Houses, Back to School Hair Cuts and Back Packs with BBQ and Bounce Houses, Outdoor Movie Parties, Mother’s Day and Father’s Day Events to honor the parents, Valentines Parties… and the list goes on and on. Together with our teams, we brainstorm every month to bring meaningful, loving events to the communities. All communities enjoy the same events on the same dates. One of our key hiring criteria on site is the new team member must play a strong role in creating a Positive Social Impact within the community.

We also provide after school programs, all day summer programs and tutoring. Some properties have a community center on site.  It they don’t, we create one in a vacant unit. We focus on new amenities that will bring the community together such as installing grilling areas, soccer fields and playgrounds.  Other ways we create a Positive Social Impact is by hosting Parenting Classes, Self-Improvement Libraries, Soccer Competitions between our other communities, Dance Classes, Swimming Lessons, Self Defense Classes for Women and monthly Crime Watch Meetings.

AmeriCan Multifamily Alliance Group also focuses on creating a Positive Environmental Impact within our communities! We celebrate Earth Day at all communities teaching children about sustainability and about loving the earth we live on. Each community plants trees with the families. We teach about recycling and conservation. We change all lighting to LED, install low flush toilets and shower heads and install recycling bins on site… INVESTMENT WITH IMPACT.

No, our office team members are the ones who plan, organize, and implement the events, which minimizes additional labor costs. We also purchase food and drinks in bulk to keep costs low, and we ask our vendors to donate to help with the program. Furthermore, we recently started a program to pay for our after-school teachers, which we find to be much more effective at making a social impact than using a free government program that we have used in the past.

At our investment firm, we understand the importance of maximizing performance to increase investor returns. One way we do this is through implementing Property Condition Standards (PCS) Inspections (PSI) and Property Energy Initiative (PEI) programs. These programs help us identify areas where we can reduce costs and increase efficiency. For instance, by changing to LED lights and low flow toilets and showerheads, we can significantly decrease our utility costs. With regards to PSI, we can also reduce the turnover rate of residents moving out, which is one of our largest costs. By addressing any maintenance or repair issues promptly, we can retain residents and decrease vacancy rates. Overall, implementing these programs not only improves the performance of the properties but also increases investor returns by reducing costs and improving efficiency.

AmeriCan has a distinctive advantage in that we self manage with our team members in the Dallas market.  Our team has been in place in the Dallas market for over 12 years.  This translates into great resources for the many requirements to re-brand a property and increase its value significantly.  In addition, we have a strong mission to create a Positive Social and Environmental impact as described below.  We feel team members work at their best when they are working for a cause that is far greater than themselves.  Through self-management, we are able to drive the Impact Plan deep within the organization which equates to residents staying longer, therefore reducing turn over costs.

At AmeriCan, our philosophy is that nobody cares about our investments as much as we do, which is why we take a self-managed approach to our portfolio. This enables us to quickly pivot, adapt and overcome challenges, and ensures that our impact programs are deeply embedded within our organization, leading to better financial returns for our investors while simultaneously reducing risk by fostering strong communities with low turnover rates.

We are extremely proud of the results we’ve achieved with our existing investors. Our investment strategy has provided exceptional returns, and we have even had some of our investors retire as a direct result of their investments with us. We invite you to view our testimonial video on our website to hear directly from some of our satisfied clients. If you have any further questions about how we operate, we can also put you in direct contact with some of our past investors who would be more than happy to share their experiences with you. At our core, we believe in building long-lasting relationships with our clients and are committed to providing the highest level of transparency and accountability in everything we do.

If you have any questions or inquiries, please feel free to email us at investorrelations@multifamiltyalliance.com