INVESTOR'S FAQ
This page answers the most common questions from accredited individual investors interested in our 506(c) multifamily offerings. Here, you’ll find details about our investment structures, minimums, distribution schedules, returns, tax benefits, and how to get started with Blue Lake Capital. Whether you’re exploring your first real estate investment or adding to an established portfolio, these answers will help you understand our process and what to expect as a partner.
Q: Who can invest with Blue Lake Capital?
A: We work exclusively with accredited investors, as defined by the SEC, under a 506(c) syndication structure. This allows us to share opportunities publicly while maintaining full compliance with federal regulations.
Q: What is a 506(c) multifamily investment?
A: A 506(c) offering allows accredited investors to passively invest in large-scale multifamily properties. You own shares in the entity that holds the asset, receive quarterly cash flow distributions, benefit from tax advantages, and share in profits at sale.
Q: What is the minimum investment amount?
A: Minimums vary by opportunity but generally start at $100,000. Our Blue Lake Multifamily Fund offers a lower entry point at $50,000. Exact amounts are detailed in each offering’s investment materials.
Q: How often will I receive distributions?
A: Distributions are typically made quarterly, starting about 90 days after acquisition. A final distribution, including your original investment, is paid when the asset is sold.
Q: What returns can I expect?
A: While returns vary by deal, our historical track record includes average annual returns in the double digits, with a target equity multiple of 1.6x–2.0x over the investment period. Past performance is not a guarantee of future results.
Q: How long will my money be invested?
A: Most investments have a hold period of 3–5 years, depending on the business plan, market performance, and exit opportunities.
Q: What are the tax advantages?
A: Investors may benefit from depreciation, cost segregation, and the ability to complete a 1031 exchange. Many use multifamily investments to enhance broader tax and wealth strategies.
Q: How do I start investing?
A: Complete our investor form to view current offerings, sign investment documents, and verify your accreditation. Once funded, you’ll gain access to our investor portal and receive regular updates and reports.
Q: Who will be my point of contact throughout the investment?
A: Our Director of Investor Relations and her team will be your primary contacts, with direct access to the CEO when needed. Every investor is provided a dedicated human point of contact and equal service for the life of the investment.