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Review our investment thesis, track record, and bios here. 

It is also important we ensure we are a fit for one another. Our type of investments may not be appropriate for every investor. Please schedule a discovery call with us here to get your questions answered and to determine if your investment goals fit with our opportunities.

A Private Placement Memorandum (PPM) is a legal securities disclosure document used by a company engaged in a private offering of securities that outlines material details about the offering.

An Operating Agreement (OA) outlines the rules and regulations for the partnership and its members.

The Subscription Agreement (SA) is the legally binding agreement between the investor and the sponsor.

Southgate has 9 years of investment experience in the Seattle MSA, having acquired 21 value-add properties and exited 10 full-cycle deals.

A preferred (a.k.a. “pref”) return is a profit distribution preference whereby profits, either from operations, sale, or refinance, are distributed to one class of equity before another until a certain rate of return on the initial investment is reached.  The pref is stated as a percentage, such as an 8% cumulative return on initial investment.  This preference provides some comfort to investors since it subordinates the sponsor’s profits participation or “promote” up to a certain return threshold.

An investment in a real estate asset should be considered long-term in nature. Investors should be in a financial position to hold their investment for a projected duration of between five (5) to seven (7) years. Hold periods are considered on a case-by-case basis and are dependent on market conditions.

You can invest with cash, through trusts, LLCs, self-directed IRAs, and self-directed 401(k)s.

Distributions occur on a quarterly basis.

Starting approximately 45 days after the first full calendar quarter has passed after the property is acquired Southgate will send out the first quarterly report. Subsequent reports will continue each quarter thereafter. The quarterly reports includes an update on business plan progress, income, occupancy, delinquency, operating expenses, capital expenses, distributions, variance analysis (budget vs. actual performance), year-to-date financial reports, rent roll, rental applications converted to new leases, lease renewal summary, and a local market report. Southgate may also send out intermittent updates between quarters when there is relevant data to report.

While some of Southgate’s investments may be open to unaccredited investors many of them are open only to approved, accredited investors.  Generally, an individual is an accredited investor if they meet one of the following criteria:

• Have an individual net worth, or joint net worth with their spouse or spousal equivalent, that exceeds $1 million (excluding the value of your primary residence)
• Have individual income exceeding $200,000 in each of the past two financial years and a reasonable expectation of satisfying this requirement in the current year
• Have combined income with their spouse exceeding $300,000 in each of the past two financial years and a reasonable expectation of satisfying this requirement in the current year; or
• Hold a Series 7, Series 82 or Series 65 financial services license.

In addition, entities such as LLCs, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

• Any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
• Any entity in which all of the equity owners are accredited investors.

It is also important we ensure we are a fit for one another. Our type of investments may not be appropriate for every investor. To determine if commercial real estate investing is right for you, please schedule a call with us here.

Specific instructions to do so will be provided once a potential investor provides a “soft commit” to an investment. The methods range from utilizing an online  verification platform such as verifyinvestor.com, filling out the accredited form in an investment’s Subscription Agreement, or obtaining written certification from a licensed professional (attorney, CPA, investment adviser or broker/dealer) that attests to the investors accreditation status with a signature dated not more than 90 days prior to subscribing to any investment.

Verified investors do not need to re-submit accreditation for a period of five years after initial submission.

Typically debt is used when acquiring new properties. It is anticipated that bank or seller financing will generally account for between approximately fifty percent (50%) and seventy percent (70%) of the gross fair market value of each property.

No. While Southgate Ventures does not make any guarantees regarding investments, we use commonly used industry methods to conservatively calculate the potential of these investments. Because it is not possible to predict future events, it is not possible to guarantee an investment. Guaranteed investments generally carry very low returns as compared to the potential returns projected for our investments.