How it Works

After deciding to invest with Wild Mountain Capital and joining our Investment Club, you can review an Offering Memorandum for specific property investment information.  In order to invest in a syndication, you will then review and sign the offering documents (Private Placement Memorandum, Operating Agreement, and Subscription Agreement).  These offering documents describe the offering and legal structure of investing in the syndication.

Due diligence is a series of tasks to evaluate a potential property for investment and determine whether it will satisfy lender requirements.  Items that can be accomplished as part of due diligence are appraisal, survey, inspections, title work, review of documents, and financial modeling or underwriting.  Underwriting involves evaluating a property to determine value, risks, and potential for investing.

Process conducted by a trained professional to identify assets and costs of a property and classify their useful life for tax purposes.  This is used for reducing current tax liabilities by reallocating depreciation beyond a straight-line schedule.

The Capitalization Rate (cap rate for short) is calculated by dividing the net operating income by the current market value of a property to determine an expected rate of return.

Wild Mountain Capital invests where it makes sense.  We study market trends, demographic information, and macroeconomic data in order to make prudent financial decisions.  Because significant value can be created at purchase, we believe in buying real estate at a discount in markets with strong underlying economies and growth potential.

A real estate syndication is a partnership between passive investors, capital, and an active operator or project sponsor who finds and underwrites the deal, sources capital, and manages the project.

You can invest in syndications through a Self-Directed IRA.  A self-directed IRA is similar to a regular IRA (or 401K), but it allows you to have ownership over where you place your investments beyond just approved stocks, bonds, mutual funds, or CDs.  If you have questions about investing using a Self-Directed IRA, just let us know.

The Securities and Exchange Commission defines an Accredited Investor in Regulation D of the Securities Act of 1933 (since updated) as someone who:

1. Made at least $200,000 in annual income in the previous two years, or $300,000 as a married couple…or
2. Has a net worth in excess of $1,000,000 excluding the value of your primary residence

Accredited Investors qualify to invest in real estate syndications by satisfying one of the requirements above.  If you are not an Accredited Investor, you can still invest if you are a Sophisticated Investor.  A Sophisticated Investor is not accredited but is determined to have sufficient experience and knowledge to assess the risk and reward of an investment opportunity.

We believe this type of investment should be accessible.  For that reason, our investment minimum is between $20,000 and $30,000 (differs by property).

As a passive investor, you receive a K-1 Tax Form, which is a pass-through tax form that lists income and expenses, similar to other tax investment paperwork.  This form can easily be input into your tax software or used by your tax professional.