Frequently Asked Questions
Get answers to the most common questions.
About Garages of America Investment Funds
Garages of America was formed to offer real estate investments to investors that know real estate. Our funds have a simple, transparent structure that allows investors the ability to effortlessly evaluate our business model and understand its projected returns and strategy to reduce risk.
Garages of America funds seek to provide investors the opportunity to partner with a real estate developer and profit from a business model not commonly available to the public. Our funds offer classes of real estate difficult to access in other funds and a business model designed to increase returns and mitigate risk.
It certainly can be. When a development fund liquidates some of its properties early in the fund’s life, it often generates significant short-term revenue and reduces costly debt and carrying charges. The fund is more of an equity play that does not require refinancing in later years to strip equity from properties to return “profit” to investors.
The number of projects will vary for each fund.
Cash flow and return of capital will begin once the development project(s) are completed and sold or stabilized. Development takes approximately 14-20 months and stabilization about 24-48 months.
Our first priority is to make sure our investors have exit strategy options that provide attractive returns; and our investors always be made aware of those options. We may sell all of the projects in a fund to a public REIT, merge with another one of our funds, or employ an UpREIT strategy. We will be in communication with our investors to keep them informed of the market conditions that would determine a course of action.
Yes. Investors are required to meet the definition of an accredited investor and provide third-party verification of their accreditation status. We provide a free accreditation service. Alternatively, you may have your accountant, attorney or financial advisor write a letter testifying that you meet the definition of an accredited investor.
Accreditation is as defined by the SEC here.
Fund Structure and Returns
While each project is different and separate with its own private entrance and security, both are complimentary and often drive traffic to each other. Although each type of garage appeals to a different demographic, demand for both types of garages is strong. The Luxury Garages historically sell-out with back-up offers prior to completion.
Approximately 30%-50% post construction debt. Many real estate funds require 50%-80% debt for their business models exposing their investors to greater interest rate and market risk.
$50,000 per Unit
We believe a portion of your income will be sheltered from income taxes, which could increase your effective yield.
Anticipated quarterly distributions are based on our asset management team’s assessment of free cash flows generated over the performance period and capital needs determined at the end of the performance period.
It is intended that each investor’s liability is limited to its investment amount.
The Fund will file tax returns as a Limited Liability Company and be taxed as a partnership. Tax returns will be filed on a calendar year basis.
Investors need to be prepared to file a federal tax return, as well as a state tax return in any state the Fund does business, if necessary. Please consult with your tax advisor.
Investors will receive a Schedule K-1. Investor K-1’s are distributed no later than March 15th.
No. However, we often have IRC 1031 exchange opportunities available outside of our funds.