Crafting financial success and helping you accelerate your goals to financial freedom through Multi Family and Commercial Real Estate Investing.
Black Axe Capital
Benefits of
Real Estate Investment :
At Black Axe Capital, investors benefit from the cash flow generated by their stake in our real estate investments. Cash flow represents the surplus income from the property after deducting expenses from the revenue, typically from rental income. A an investor, you will receive a portion of the property's cash flow proportional to your investment, this income is commonly known as "passive income". This passive income is directly deposited into investors' accounts, allowing them to benefit from the fruits of their investment without active involvement in the day-to-day operations of the property.
Cash Flow and Passive Income
Appreciation, Depreciation
and Tax Benefits
Appreciation in real estate investment refers to the increase in the value of a property over time. As the property's market price grows, the investor stands to make a profit if they decide to sell it at a higher price than they originally paid. This increase in value can result from various factors, such as improvements to the property, demand outpacing supply, or economic changes in the area.
In commercial real estate investing, depreciation offers a significant tax benefit. It allows investors to deduct the perceived decrease in value of the property due to wear and tear over time. For commercial properties, this deduction period is typically set at 39 years. This depreciation deduction reduces the amount of taxable income, lowering tax liabilities annually while the property may still be appreciating in actual market value. This can lead to enhanced cash flow for investors, as they pay less in taxes while potentially gaining from the property's increased value over time.
Investing in commercial real estate offers several tax benefits:
1. Depreciation: This allows investors to deduct the cost of the property and improvements over 39 years, reducing taxable income each year. We often perform “Cost Segregation Studies”. A cost segregation study examines each property element and accelerates depreciation deductions for building components such as flooring, windows, roofing, fencing, and sidewalks, resulting in considerably shorter tax lives for these components rather than the standard 39-year timeline. This action can increase cash flow.
2. Interest Deductions: The interest paid on loans used to purchase or improve commercial properties can be deducted, lowering the overall tax burden.
3. Capital Gains Treatment: When commercial real estate is sold, the profit is taxed as capital gains, which often has a lower tax rate compared to ordinary income.
4. 1031 Exchange: This provision allows investors to defer capital gains taxes by using the proceeds from the sale of a property to purchase another similar property. These benefits can significantly enhance the profitability and cash flow from commercial real estate investments by reducing the amount of money paid in taxes.
(This is not legal advice or promise, you will need to consult with your Accountant/CPA.)
It’s time to level up!
“How Do I Invest?”
Step 1: Reach out to us and setup a Discovery call. It’s that simple.
On our call we’ll talk about; where you currently are, if this type of investing is right for you, your goals and your timeline…. It’s ok if you don’t know all the details yet, we are here to help!
Step 2: Decide which offering is right for you.
Step 3: Take action and make an investment.
What type of opportunities does
Black Axe Capital
Invest In?
We primarily seek out multi family investment opportunities in the Mid-Atlantic, South Eastern and Mid West. We have a stringent list of requirements and parameters for the opportunities we present to our investors. In optimal conditions we seek asset classes that generate: 1. cash flow, 2. assets that we can add value to increase the market value/Net Operating Income, 3. increase exit value.
Each opportunity we select is individual with unique challenges and opportunities. We structure a business plan on each opportunity to maximize the output of the asset to give the best return possible. We specifically choose certain assets in specific geographies that present the best resistance to inflation as well as resistance to political and economic negative influences at the same time we monitor key performance indicators to remain fluid and dynamic in managing the assets to navigate any potential negative impacts on our invested assets.
Investment Opportunities We Seek:
Multi Family, Land for Development, Self Storage, Hotels & Resorts, Extended Stays, Car Washes, Section 8 Housing (HUD), Commercial Retail, and more…
Let’s work together.
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The What, Who and the How…
When it comes to apartment investing, there are 3 key terms you’ll want to understand related to how our investment opportunities are structured.
These terms can be confusing – but don’t worry, keep reading, let’s have our call and they will be crystal clear.
SYNDICATION
A syndication is a group of investors who pool their money together to jointly purchase large real estate properties – i.e. apartments, retail shopping centers, car washes, hotels, etc.
ACTIVE INVESTOR – Also known as “General Partner” or “GP”
This is us, Black Axe Capital. The General Partnership team is responsible for sourcing the deal, negotiating, underwriting, raising capital, securing property management/staff, and ultimately executing the business plan so projected returns can be achieved. This team is basically in charge of the deal from start to finish.
And now for the best part...
PASSIVE INVESTOR – also known as “Limited Partner” or “LP”
This is you. If you want to enjoy the rewarding returns and tax benefits of investing in real estate, but you don’t want to ever deal with tenants or property management, you invest passively.
Your investment, along with other passive investors, provide a portion of the equity to acquire and operate the property. In return, you’d receive portions of the cash flow and proceeds from a refinance and/or sale.
Passive investors (also known as Limited Partners) typically own 70% of the equity split in a deal.
Now that you understand these 3 key terms, you’ll love what happens next...
