When Do I Get Paid & How Much?
The wonderful thing about passively investing in commercial real estate is you receive cash flow, get your principal back and make a return.
The question is how much will you get paid and WHEN?
In this article, you will discover 3 ways passive investors get paid and when you will BENEFIT!
We go over cash flow distributions, how often investors receive pay outs, and what you can make as a passive investor at Wagers Capital.
Cash flow distributions
Most passive investors will get a check either monthly, quarterly, or annually. Usually, you will get your cash distributions 30-45 days after the end of the period.
Cash on cash return
· CoC return is calculated by taking the initial investment and dividing it by your cash flow distribution
· Adding value to the building will also increase your CoC
o Add value = raise rents = more cash flow
o Lower expenses = more cash flow
Cash out refinance
If the investment is a value-add property and the GP is good at their job, the assets net operating income will increase over time. This will allow the building to refinance at a higher valuation and operator will be able to pay off the loan and pay the passive investors a big chunk of their principal back.
At sale
Passive investors will also be paid come selling time. The profits from the sale of the property are split by equity.
You Benefit!
Not only will you be getting paid regularly through cash flow distributions monthly, quarterly, or annually, but you will get an even BIGGER PAY DAY after refinance or at the sale of the property!
If you are interested in passively investing with Wagers Capital, I invite you to join our Investor Club where we can share current investment opportunities with you. From there, you will have the ability to book a 1:1 Investors Strategy Session.
You may also download our free eBook, The Busy Professionals Guide to Creating a Diversified Wealth Plan & Why the Ultra Wealthy Expand Their Portfolio with this One Investment,” where we discuss why it is important to create multiple income streams.
We are excited to join you on your journey in building wealth so you can live the life you want!