HOW IT WORKS

The process of generating exceptional returns on capital.

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Apartment Real Estate Investing

Long term wealth & security with truly passive income.

It is difficult to find a sponsor who can deliver returns in-line or better than expected. We only present carefully vetted and recession resistant multifamily opportunities that we know will hit our return targets.

THE PROCESS

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SIGN & INVEST!

The opportunity is then offered to our Investor Network through a Private Placement Memorandum and Executive Summary.

CLOSE AND EARN!

Upon closing, you will begin earning your proportionate share of distributions, which are made each quarter. We send monthly updates on each deal.

SOURCING OPPORTUNITIES

We have developed a strong pipeline of apartment deals in our select markets.

ASSET MANAGEMENT
INCOME ENHANCEMENT

Through mark-to-market, strategic renovations, utility bill-back programs, new revenue streams, in-house property management (MSA Properties, LLC), and reducing expenses, CMC increases Net Operating Income.

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REFINANCE

After significant value-add, CMC utilizes its strong relationships with lenders to refinance, which allows us to return or re-invest the majority of invested capital, lengthen the maturity of debt, and lower the monthly debt service payment.

DISTRIBUTIONS

On a quarterly basis, we distribute cash in excess of reserve requirements.

EXIT

At the end of the investment, we work with our team of brokers to sell the property at an attractive capitalization rate. Hold times (ranging from 2-10 years) vary based on strategy, market, and stage in the economic cycle.

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Invest in multifamily real estate instead of evaporative trading markets and 401ks.

Receive regular updates on CMC investment opportunities, our platform, and gain access to our resource library!

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We constantly underwrite investment opportunities, and only bring the best to our Investor Network.

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Join Our Investor Network! 

Fill out the investor questionnaire and schedule a call with us. After getting to know you, we will add you to our Investor Network, which will give you private and prioritized access to Cross Mountain Capital deals.

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Sign and Invest

We will send you investment opportunities through a Private Placement Memorandum and Executive Summary. If you wish to invest, sign the associated deal documentation and wire funds to our escrow account.

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Close and Earn!

Upon closing, you will begin earning your proportionate share of distributions, which are made each quarter. We send monthly updates on each deal.

GETTING STARTED

FAQs

What makes Cross Mountain Capital different from other multi-family investment opportunities or sponsors?


We co-invest in each syndicated opportunity. Other operators advertise for markets, management companies, and neighborhoods that they won’t invest in with their own capital; either because they don’t have capital (a serious red flag) or don’t believe strongly enough in the deal to commit capital. Even though we might miss out on some clients that want to invest outside of our risk profile, our system is based on our own recession-resistant investment criteria that has been proven over several years.




How are distributions paid?


Distributions are paid on a quarterly basis, starting in the first full quarter after an asset is acquired. We send all distributions electronically.




Can the investment grow tax-free in a retirement account?


The eQRP (Enhanced Qualified Retirement Plan, also referred to as a QRP (Qualified Retirement Plan) or Solo 401k) is commonly used by those in the know. Available to individuals with "business income" (a very broad category), eQRPs allow real estate investments to grow completely tax free as long as all the rules concerning funding and distribution are followed. For help setting up and managing an eQRP, we recommend The eQRP Company (You can schedule an informational call at your convenience here.) For people who are ineligible for an eQRP, a self-directed IRA can also be used to fund investments. This eliminates capital gains taxes as long as no funds leave the account. However, if the investment is partially financed (as is common with syndicate/sponsor real estate holdings), the "Unrelated Debt Financed Income" (UDFI) is subject to an Unrelated Business Income Tax (UBIT), although this tax can be offset by "depreciation" (in the tax sense) of the investment. You can read more about this in our eBook. You should always consult your own tax, legal and accounting advisors before engaging in any transaction or tax-strategy.




What are typical Returns?


For most of our projects, we target annual returns of 6%+ and overall returns and IRR's north of 15%. Returns will vary deal by deal, so please contact us to learn more about anticipated returns of a specific project.




What are the risks?


Direct or indirect purchases of real property involve significant risk, including loss of value. In deciding whether to invest in a specific opportunity, prospective investors should read the entire Operating Agreement and associated Risk Disclosures. Potential investors should always consult an investment advisor, accountant, and attorney prior to making any investment decision.




I'm not sure I am an "accredited" investor. Can I still invest?


In many cases, the answer is yes. Not every investment will require all investors to be accredited investors. Many projects utilize the SEC exemption, Regulation D 506(b), which allows up to 35 non-accredited investors per offering. If you would like to find out more, email us and we will reach out to you to discuss.




Who is CMC's typical investor?


· Dentists, Physicians, Attorneys, etc. · Wall Street Professionals · Corporate Executives · Entrepreneurs, Business Owners, etc.





What is the minimum investment amount?


The minimum investment per deal varies but is typically $50,000 to $100,000.




How will an investment affect my taxes?


For the vast majority of our investments you will receive a K-1 form for each investment that you are involved in. Please communicate with your CPA or Tax Attorney for specific information regarding taxation.




What are the benefits of depreciation for me as a passive investor?


Depreciation is a non-cash expense that reduces a property’s taxable income but doesn’t reduce cash flow. Unlike some other sponsors, we report property depreciation back to investors enabling offset of passive income across their entire holdings! Depreciation is one of the great tax advantages of Real Estate. For example, a property could have $1,000,000 in gross collected rents, $400,000 in operating expenses, and a depreciation expense of $700,000. This scenario would result in a loss of $100,000 for tax purposes ($1,000,000 - $400,000 - $700,000), but the property still produced $600,000 in cash flow. In many of our offerings, rental income may be sheltered by the combination of depreciation and other operating expenses, and often a loss is “passed-through” to the partner. These losses not only cause the investor to avoid paying tax on the rental income, but they can shelter other passive income (e.g. from other rental property investments), or are suspended and carried forward until (a) the investor has passive income in future years that can be offset by these suspended losses, or (b) the investment is sold. It is important to note that depreciation is recaptured upon sale of the asset at a tax rate of up to 25%. This can be reduced or eliminated by current and suspended passive losses, or by using strategies like reinvesting the gains into a 1031 exchange. We attempt to optimize tax efficiencies for our investors throughout the offering lifecycle.




What current offerings do you have?


We are not able to market offerings directly to the general public due to securities regulations. In order for you to be able to see and subscribe to our offerings, we either need to confirm you are an accredited investor or develop a relationship with you in order to evaluate your level of understanding regarding real estate investment. Our Active Deals page has examples of deals that are likely to be opened to investors in the near future. If you would like to join our network or learn of any current open investment opportunities, please click here to sign up.




What is a Preferred Return and when will it begin to accrue?


Our deals typically feature a preferred return for investors. This means that the investor has a priority when distributions are made. Until the preferred return hurdle is met, investors get 100% percent of whatever is distributed.

For example, if you invest $100,000 in a deal where the preferred return is 6%, you must receive $106,000 before distributions can flow to the sponsor. Your preferred return will begin to accrue the date on which the property is acquired.




Where can I source capital for a CMC deal?


· Liquid Capital or Personal Funds · Invest Directly From Self-Directed IRA or eQRP · 401(k) · 1031 Exchange Funds