Cherrypick Capital offers investors the opportunity to invest in diversified funds and single asset raises for apartment complexes, mobile home communities, single family rental portfolios, and self storage facilities.

Cherrypick Capital offers both funds and project specific syndications based on the asset and your goals as an investor. Each raise will specify both the asset type and the investment type to ensure you are well informed about the investment you are making. 

An accredited investor, in the context of a natural person, includes anyone who:

• Has 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 calendar year, OR
• Has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
• Holds good standing a Series 7, 65 or 82 license

On the income test, the person must satisfy the thresholds for the prior two years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period. The person may satisfy the threshold based on joint income for the years during which the person was married and based on individual income for the other years.

In addition, entities such as banks, 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 more than $5 million, not formed to specifically purchase the subject securities, and whose purchase is directed by a sophisticated person, OR
• Certain entity with total investments more than $5 million, not formed to specifically purchase the subject securities, OR
• Any entity in which all the equity owners are accredited investors.

In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

There are several options for types of entities/accounts you can use when investing in our funds. You can invest as an Individual, Jointly, through an LLC (Limited Liability Company), Corporation, Partnership, Retirement Plan/401K, or a Trust.

For stabilized, income-producing property investments, we target low- to mid-teens equity returns on an annualized basis over the entire life of the investment. We may target equity returns that are higher or lower depending on the type of investment and amount of leverage utilized. For example, if we invest in a property that requires significant repositioning through capital and marketing investments, we may forego near-term distributions to achieve a higher gain on the sale of the property in the longer term. We target higher equity returns for these types of investments as they involve more risk.

Our targeted returns are just that, targets. Investment involves risk and our actual returns may be higher or lower and may include a partial or total loss of your investment.

We intend to pay distributions quarterly but may change the frequency at our sole discretion during the term of the fund. The change in distribution frequency can depend on many factors such as the property’s cash flow level or needed capital expenditures. Sometimes the cash flow of the property may not support a distribution. Additionally, our funds may invest in a property with the plan of not paying any near-term distributions while we undertake a capital and repositioning program.

We are personally invested in the fund and we love to receive distributions while we all wait for the property’s value to appreciate.

If you have an existing IRA, or a 401K from a previous employer, it is likely that you will be able to self-direct all or a portion of it into our investment vehicles. Check with your current custodian to see if they will allow you to self-direct your retirement account. If the answer is no, please contact us and we will introduce you to one of the custodians that we work with that will allow you to invest in alternative assets using your retirement funds.

Potentially yes. If you have 1031 proceeds you are looking to invest, please contact us directly to discuss in more detail and to see if this will be a possibility.

The term of our funds are generally 10 years, but we have sole discretion to extend the life or even decrease the life after you have invested. The reason for this is we want to maximize the value of the real estate investments. We do not want to be forced to sell investments when the market is bad, nor do we want to pass up the opportunity to sell investments when the market is great. We are long-term investors and the more time we stay invested in a property, the better chance we have of capturing property appreciation from inflation and rising rents.

Our fee structure is typical for private real estate managers, and we believe our fees are lower than many other managers. We currently can charge a 2% asset management fee based on the total monthly gross income, and a 2% transaction fee based on the value of properties we acquire and dispose of. As our portfolio grows, we will need to add significant resources to keep pace, and we may charge property or construction management and financing fees to help cover the costs. Essentially, our ongoing management fees along with upfront transaction fees pay the monthly bills at Cherrypick Capital, and our asset management fee rewards us for the performance of the investment. 

We do not charge miscellaneous fees, such as fees for processing and storing your investment information. We also do not ask you to pay fees or commissions to middlemen or stockbrokers to invest in our funds.

All investments involve risk, including those investments made in Cherrypick Capital. We do not guarantee that you will earn our targeted returns. There are many factors that can impact the performance of your investment, many of which are not under our control. Please keep in mind, investing involves risk and may result in partial or total loss of your investment. Prospective investors should carefully consider investment objectives, risks, charges, and expenses, and should consult with a tax or legal adviser before making any investment decision.

We do believe that investing in private real estate poses less risk than many other types of investments. Private real estate has historically been less volatile than the stock market, and properties generally appreciate over time as inflation tends to push rents up. Additionally, we conduct extensive research and due diligence on every property investment and have a high degree of conviction that our risk is balanced with our targeted returns. We are personally invested in the funs, so we personally believe in the potential return of each of our investments. 

Investors will receive access to their investor portal where they can review their investment details and relevant documents at any time.

Depending on the offering, investors can expect to see monthly or quarterly updates.

You will receive a Form K-1. A Form K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Our goal is to finalize all Form K-1s annually by March 31st, however, we do rely on outside reporting and may require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns, but that is not our intention.

Yes! We typically perform cost segregation studies on all of our assets, allowing investors to benefit from bonus and accelerated deprecation.