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FAQ

Frequently Asked Questions

Lotus Capital Holdings offers opportunities to invest in large multi-family apartments for those who wish to grow their wealth. We bring investors together to buy bigger projects, reduce risk, and provide greater returns. This form of investing is called syndication. Each investor owns a percentage of the property's equity, depending on the amount invested. Once Lotus Capital Holdings has acquired a property, it immediately begins the value-add strategy by operational and building improvements. We will increase the value of our building by renovating it, increasing income, and reducing expenses where possible while maintaining a safe and comfortable environment for our residents. Our investors enjoy passive income while Lotus Capital Holdings handles the day-to-day decisions.

Multi-family is considered stable and safe among various investment asset classes, but with any investment there are inherent risks. As part of our efforts to mitigate risks, we find off-market opportunities by leveraging our relationships with local brokers and owners. We build partnerships with highly capable, experienced property management companies to optimize income, reduce expenses, and provide a positive touchpoint for our residents. There are no guarantees in investing, however, Lotus Capital Holdings invests our personal capital and time in the deals to have aligned interests and goals in executing the investment strategy.

Yes. Once you decide to invest in a property, you will be contacted by an Lotus Capital Holdings team member with instructions on how to verify your eligibility.

Yes. Investors can invest through their traditional self-directed IRAs. Investors are also able to invest through their LLC, LP, or Trust. Please contact Lotus Capital Holdings if you have questions or need help selecting a custodian.

$50,000 is the minimum to invest in a project depending on the investment property. Learn how to invest using your current IRA/401K money without penalty from a third-party self-directed custodian company. Please contact Lotus Capital Holdings for more details.

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

Investors receive a return on investment through passive income and tax benefits in a number of ways. Once the project is renovated and stabilized, Lotus Capital Holdings provides quarterly distributions to its investors. Lotus Capital Holdings focuses on creating a forced appreciation by renovating the building, increasing rents, and reducing expenses to increase the value of the property. Equity increases with residents paying down the loan of the property. Investors typically pay little to no taxes on these distributions due to depreciation of the asset. Lastly, investors will receive a percentage of the profits from the sale set up in the equity structure of the investment.

Every value-add multi-family property investment is different and there is never a guarantee on an amount of return on investment. Every value-add multi-family property investment is different and there is never a guarantee on an ROI. However, we typically strive to achieve a double-digit IRR (internal rate of return) with no guarantees over the life of the investment, which comes from cash-flow, forced appreciation from adding value, and the profits from the disposition of the property. Lotus Capital Holdings invests our own capital into these properties and seeks every opportunity to maximize investor returns. We discuss the business plan, projected returns, and equity structure with investors for each investment property.

The time period varies for each specific business plan, but typically we see an 18-month to 7-year hold period before employing an exit strategy, such as a refinance or sale. Economic conditions can impact this strategy. Initial timelines will be communicated to investors at acquisition of the property, and will stay updated through our online portal and quarterly call updates. Lotus Capital Holdings will strive to meet or exceed our initial projections and will prioritize the greatest returns for all investors.

No. Commercial real estate investments are longer-term than traditional liquid stocks and bonds. Investors would receive a projected hold period timeline from the beginning of the investment and consistently throughout the life of the project. Cash distributions are done through cash flow from the property during the holding period of the asset. Many times, investors may not receive their full principal investment back until the property sells and investors cash out from the profits upon disposition. Lotus Capital Holdings makes no guarantees of investor returns.

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

You must qualify as an “accredited” or “sophisticated” investor. These designations ensure that investors possess a certain level of financial and investing competence.

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Lotus Capital Holdings targets neighborhoods across 14 fast-growing U.S. cities: Atlanta, Austin, Charlotte, Dallas, Denver, Jacksonville, Las Vegas, Nashville, Orlando, Phoenix, Raleigh, Salt Lake City, San Antonio and Tampa.

Lotus Capital Holdings looks for underperforming office and multi-family assets in ten high-growth markets throughout the U.S. We look to add value by buying right and enhancing revenue through active management.