We were hoping you’d ask.

What is passive investing?

Passive investing is when you invest your money into a deal, and other people (aka, the sponsors) do the work of actively managing the asset on your behalf.

As a limited partner investor, you get the lion’s share of the returns, without having to do very much of anything.

Are there any fees?

There are fees, but they are paid through the cash flow from the property and are built in to the projected returns.

You don’t pay any fees out of pocket.

What is GP (general partner) and LP (limited partner)?

General Partner vs Limited Partner; general partners  acquire and manage the asset. Limited Partners like you, only need to provide the money, and you can leave the headaches to the GPs.

In what ways can professional managers run the investments?

“You could do it through the market, and you could actually invest in REITs, Real Estate Investment Trusts, joint ventures with partners, and they’re the ones that are overseeing everything. And then another option is the limited partnerships where it’s a group of investors that are pooling their funds together, there’s a couple of investors that are running point and managing the managers. “

Why should I work with KEP, instead of directly with a sponsor?

At Kind Equity Partners, our focus is on providing our investors a world-class investing experience. That means we will take the time to answer all your questions and also help you think through your investing goals holistically, rather than just evaluating the returns for a single deal.

What happens after I invest?

You can expect to receive an email once we receive your funds, again at closing, and monthly after that. We update you on occupancy, status of rehab work, and any fun things we are doing to improve the property.

Every quarter, you will receive access to financial reports, which include profit and loss statements, as well as the rent roll.

What are the steps involved?

As we find deals that meet your goals, we’ll share them with you, and you can decide whether or not to invest. If you decide to invest, you start by submitting a soft reserve for the amount you want to invest. Then, you review and sign the legal docs and send in your funds.

Using your IRA/401K and a bit further down getting bonus depreciation:


Yes, if you have IRA funds, you can move them to a SD-IRA and put them in a MF deal. Some can create a Solo 401K and use that to invest. I don’t know of a way to use a regular 401K. But realize if you use any kind of IRA (Trad or Roth) you are subject to UDFI tax. The Solo 401K avoids UDFI.

Bonus Depreciation:

Land can not be depreciated, but the improvement can. A MF building is depreciated over 27.5 years, but there are items in the building that can be depreciated faster (5y & 15y or there about). If you have an qualified firm do the Cost Segregation, the IRS allows you to move 100% of the shorter depreciations to today (Bonus Depreciation). This is the last year of 100%, it tapers down over the next few years. Note there can be recapture at a 25% tax rate.

What does this mean to the new RE passive:

General Partner vs Limited Partner; general partners  acquire and manage the asset. Limited Partners like you, only need to provide the money, and you can leave the headaches to the GPs.

What if I use an IRA/401K:

If you used a retirement account, you do not get that depreciation; your returns come to you tax deferred or free – except for the UDFI.
How much is UDFI: UDFI is up to 40% of your gain on the leveraged portion; loosely, you make $100K one a 75% leveraged property: 40% * $75K = $30K (a bit less as there is a deduction).

What if I use a Trad IRA/401K:

All of that gain, that would have been taxed at Cap Gain rates, sits in that Trad IRA/401K and grows. At some point you, or your heirs, will have to pull it out (Think RMDs) and it is taxable at ordinary income rates.

How do you avoid the 10% penalty when taking gains from a Roth IRA?

you must have had an (any, even a near empty one) for 5 years. This is a one time per person kind of rule. Note the contributions may be removed at any time.

What is a real estate syndicaton?

A real estate syndication is an efficient way for investors to pool their money together to purchase larger real estate assets that they typically couldn’t manage or afford to purchase as an individual investor. Generally, by leveraging and raising additional funds from outside investors to purchase it, we force appreciation and then actively manage the asset.

Typically 25%-30% of the funds are pooled together from the syndicator and the passive investors, and the other 70%-75% of the funds come from the lender/bank.

There are many parties involved in a syndication, including, but not limited to, CPAs, lenders, real estate brokers, attorneys, property managers, passive investors (you) and the syndicator who puts the whole deal together and manages the asset (Kind Equity Partners)

What exactly does Kind Equity partners do?

Through our industry relationships, we go out, locate and underwrite cash-flowing multifamily real estate communities, we then raise cash from investors to acquire the asset, we then force appreciation through physical or operational improvements and we then actively manage the asset.

How do I know if I am a sophisticated investor or an accredited investor?

Generally speaking, sophisticated investors must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment. To qualify as an , at a minimum you must have earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year or has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). Reference the SEC guidelines at for a more detailed description. To find out if you are qualified under this definition,

How can I get started investing in real estate?

While buying an investment property and collecting monthly rent is perhaps the most classic example of investing in real estate, it’s only one option. It’s also possible to follow a fix-and-flip investment strategy, get involved with real estate wholesaling, or invest in a real estate investment trust (REIT).

Before you can start investing in real estate, get clear on your investment strategy, since each method of investing has different advantages and disadvantages. You’ll need to learn what type of real estate investing works best for you before you can try to take your first steps building a portfolio.

Do I need to work with a real estate agent?

If you’re following an investment strategy that involves buying property, a common real estate question is whether you need to work with a real estate agent. When you’re new to the world of real estate investing, the answer to this question is usually a resounding “”yes.””

A good real estate agent will be able to provide you access to necessary platforms like your local multiple listing service (MLS), as well as guide you through the more complicated aspects of the transaction, like drawing up your first real estate contract and effectively negotiating with the listing agent.

That said, if you find paying real estate commission is eating into too much of your profits, many investors do end up getting their real estate license. So if your goal is to build a real estate investing business, getting your license may be something to consider.

How can I start to diversify my portfolio?

Once you’ve got a few real estate transactions under your belt, it’s only natural to start thinking about how to diversify your portfolio. In this case, diversification is about adding variety.

For instance, if you’ve got most of your assets tied up in single-family homes, it might be worth considering some multifamily or commercial properties. On the other hand, if you’re looking for a more passive real estate strategy, consider investing in REITs or real estate ETFs.

Does the Deal Sponsor/Syndicator invest funds in the property with the investors?

Yes. We believe in all of our offerings and invest along side our investors in each syndication.

What is a typical minimum investment amount?

The minimum investment amount ranges from $50,000 to $100,000+ for each syndication.

Can I invest through my entity (LLC, Corporation, Partnership, etc.)?

Yes. You can invest through an entity as long as the members meet the SEC investor requirements.

Will there be any ramifications to my personal taxes?

Consult with your CPA for specifics on how this type of investment can impact you. There are typically significant tax advantages from investing in the real estate sector through depreciation. You will receive a K-1 from the partnership.

What are the typical returns for investors?

There are three main types of returns from real estate; cash flow, principal pay-down, and appreciation. These returns will vary from property to property, so, please, for more specific information regarding total returns.

Can I use my IRA or 401(k) to invest?

Yes, you can use your self-directed IRA (SDIRA) or you can convert an existing IRA or old 401(k) to a SDIRA to invest in our syndications. Contact your CPA to learn the details. is a popular IRA custodian among investors. Be sure to shop around to find the best service and fees for their custodial services.

Do I need to be an accredited investor to invest with KEP?

No. Kind Equity Partners works with accredited and non-accredited investors.

Where can you find great real estate deals?

There are plenty of places to find good real estate deals. Again, if you’re new to real estate investing, your best resource is your real estate agent, who will be able to use the MLS to send you information about available listings in your real estate market.

On the other hand, if you’re more interested in investing in real estate from a REIT angle, consider trying out Mogul, a Millionacres service, for commentary, tools, and guides on investing in REITs in real estate equities.

How can you determine the right list price for a property?

Whether you’re following a buy-and-hold or a fix-and-flip strategy, you’ll eventually need to know how to effectively price a property for sale. As an investor, you should rely on your listing agent, who can perform a comparative market analysis (CMA) to help you take an educated guess at the fair market value of the property

Do we accept foreign investments?

Yes, on a case by case basis as long as compliance with U.S. Securities Law is satisfied.

How often do you make distributions?

Quarterly distributions is the standard, however, each syndication is a businesses with varying distribution amounts based on the performance of the property. Each syndication has a specific strategy based on the specific value-add components of the asset.

Why invest in a Multifamily Apartment Syndication?

A Multifamily Apartment Syndication allows investors to participate in otherwise unobtainable real estate investment opportunities by aggregating capital and experience by teaming up with other like-minded investors. This also allows you to diversify your capital into other real estate syndications or in other economic sectors.

How often will updates on the deal be sent out to investors?

The communication protocol varies based on the deal, but we will always communicate effectively via email or phone whenever there is an update. Additionally, we are available for communication Monday through Saturday!

How long will my money be in the deal?

The projected refinance for a deal would be somewhere between year 2-3. This would be the first large liquidly event for the deal. Typically we look to hold a property for 5-7 years, although we could sell well before that if we can achieve our desired number.

What fees are involved and how does KEP make their money?

The first thing to understand is that any fee is separate from all highlighted returns and projections for a deal. Simply put, that means that any fee collected by KEP (the syndicator) has no impact on projected returns of the deal, no fees are coming out of pocket from investors. We make our money in three ways;

Acquisition fee, which is anywhere from 1-3% of the purchase price and is paid at closing to cover all costs associated with finding and vetting closing on the deal.
Asset management fee, which is anywhere from 1-3% of monthly revenues. This fee covers all of the time and costs we incur associated with managing the asset, overseeing the property management company and executing on the deal’s plan.
Equity split, which is the split of cash distributions we receive as equity partners in the deal. Typically, the equity split is 60/40 or 70/30.

What exactly are the funds used for?

Investor funds are used for the total acquisition cost of the property. This includes but is not limited to the actual purchase price of the property, acquisition fees, legal and transaction costs, capital projects, and reserves.

Can i visit the property?

Yes. Investors are allowed to visit the property before investing and during the life of the project.

How do we plan for real estate investments that might come up periodically?

Take any of the money that you anticipate allocating tore int eh coming year, and putting it into a money market account so its easily accessible when the time comes.”
Knowing that we will have investment opportunities several times a year 4-5 initially, then increasing slowly over time – it should be pretty easy to do asset allocation knowing that the RE investments are coming.