Return on Investments and Frequently Asked Questions
ProSwift, Driving Exceptional Returns in Commercial Real Estate
Our Benefits
At ProSwift, we help you maximize returns while minimizing risk through a diversified portfolio of high-potential investments. Our data-driven strategies and hands-on asset management ensure each opportunity is optimized for growth and profitability, providing you with a reliable path to long-term financial success.
High Return Potential
Benefit from strategically sourced real estate investments that target a strong Internal Rate of Return (IRR) and substantial equity multiples, maximizing capital appreciation and overall profitability.
Data-Driven Investment Strategies
We leverage advanced financial modeling and in-depth market analysis to identify high-potential opportunities, ensuring each investment is backed by rigorous due diligence and strategic insight.
Risk Mitigation through Diversification
Our diversified portfolio includes assets across various sectors and locations, reducing exposure to market volatility and enhancing the stability of returns over the investment horizon.
Active Asset Management
Our hands-on asset management approach includes optimizing property performance, implementing value-add initiatives, and closely monitoring market conditions to unlock additional growth potential.
ROI Table for 5 Years
This table illustrates a projected 5-year return on a hypothetical $100,000 investment in the ProSwift Syndication, reflecting our targeted IRR of 21% and
an equity multiple of 3x:
| Year | Investment Value | Annual Cash Flow | Cumulative Cash Flow | IRR | Equity Multiple |
|---|---|---|---|---|---|
| Year 1 | $100,000 | $10,000 | $10,000 | 21% | 1.1x |
| Year 2 | $110,000 | $12,200 | $22,200 | 21% | 1.22x |
| Year 3 | $122,200 | $14,884 | $37,084 | 21% | 1.37x |
| Year 4 | $137,084 | $18,206 | $55,290 | 21% | 1.55x |
| Year 5 | $155,290 | $22,320 | $77,610 | 21% | 1.77x |
| Year 6 | $155,290 | $77,610 | $77,610 | 21% | 3x |
FAQs
Commercial Real Estate(CRE) Assets, such as Multifamily Apartment Complex, Gas Stations, Retail Stores etc. is different from Residential Real Estate Assets where value is determined not by comparable but by the potential of income and profit.
This provides an opportunity of FORCED APPRECIATION.
In case of Forced Appreciation CRE asset’s Net Operating Income(NOI) can be increased by enhancing existing or adding new income sources and reducing expenses. This often results in growth in value based on market Capitalization Rate for given asset type.
Residential real estate or smaller multifamily(up to 4 units) do not follow this methodology and so value appreciation cannon be forced above comparable sale in the area.
A syndication is simply a pooling of resources, whether time, money or otherwise.
Many reasons to do do Syndication, but mostly when it comes to investments bigger the better from the perspective of earning potential and risk mitigation.
Here is an example of Single Family Residential versus Multifamily Residential Investment(ALL NUMBERS ARE APPROXIMATE)
Investment amount – $60, 000 (You can purchase up to $300,000 home in many States with this much downpayment)
Single Family
Yearly cash-flow – $2,400
% yearly return – 4%
Yearly equity growth – 4 to 8%
Active Income – Mostly Self Managed or else professional Property Management reduces margins even further – must deal with TTT and evictions etc
Based on personal credit
Can do maximum 10 loans
Real estate tax benefits
Total loss of rent in case of vacancy
NO Forced Appreciation only Natural Appreciation
Multi-Family
Yearly cash-flow – $4,800
% yearly return – 8%
Yearly Equity growth(because of Forced Appreciation) – 15 to 20%
100% Passive Income
Not based on personal credit
No limit of 10 loans or investments
Get all tax benefits just like single family
NO total loss of cash-flow in case of vacancy
Benefits of Forced Appreciation
An accredited investor is someone who meets certain requirements regarding income and net worth, based on Securities and Exchange Commission (SEC) regulations. This is so that the SEC can ensure proper protection for all investors.
To be an accredited investor, you must satisfy at least one of the following:
1. Have an annual income of $200,000, or $300,000 for joint income, for each of the last two years, with expectations of earning the same or higher income this year.
2. Have a net worth exceeding $1 million, not counting your primary home.
While most of our investments are available to accredited investors only, we do offer a few investments for non-accredited/sophisticated investors.
Majestic Investment Group is SEC compliant and strives conduct business in transparent manner.
Before even investors are matched up with suitable investment opportunities, we thrive to build quality long-term substantial relationship.
As a passive investor, you just invest your money, then sit back and start receiving returns. No need to worry about tenants, termites, or toilets. Passive investors do NOT have to get their credit check nor do they provide any personal / income guarantee for the loan. In other words the liability or risks to your personal assets is none. We take care of all that and provide you regular updates.
While the minimum investment can vary, the typical minimum is $50,000.
Investors can typically invest using their cash savings or retirement funds.
Many investors are not even aware of the fact that their 401k or IRA funds can be self-directed into alternative investments such as real estate syndications.
Majestic Investment Group can connect you with its affiliate providers for solo 401k and self directed IRA.
Click the button below to set up a consultation and get started.
Most projects plan for a 3-5-year hold, so you should plan to have your money in the investment for at least 5 years.
During this time, you will receive regular cash flow returns, but your initial investment cannot be withdrawn.
Syndications are structured as LLCs.
When you are an equity holder in an LLC, and you have a profits interest, you will receive a pro rata share of the entity’s profits and losses. This means you will be allocated a portion of whatever tax strategy the entity is utilizing. When an LLC files its tax return, it will claim all of the income and deductions and then issue you a Form K-1. That K-1 will be used to prepare your personal tax return and report your share of the entity‘s profits and losses.
This is a common point of confusion as clients will receive $50k in distributions but the Form K-1 they receive shows a passive loss. In this example, the investor would not pay tax due to the loss reported on the K-1 even though they received $50k in distributions. These distributions would instead lower the investor’s basis in the entity and be considered a return of capital.
Advanced tax strategies such as depreciation, cost segregation and bonus acceleration are applied to give their benefits to passive investors.
Please consult your personal CPA and tax advisor as each persons income and tax situation is unique.
Passive investors are also known as Limited Partners (LPs) and management team is also known as General Partners (GPs).
Ideally, all deals should be structured which incentivize both the LPs and GPs, building a win win model.
Profit Split: Depending on the type of LP compensation structure, the general partnership may earn a portion of the remaining profits after the preferred return is distributed. Typically, 70/30 split (70% LP and 30% GP).
Acquisition or Due Diligence Fee: The acquisition fee is an upfront, one-time fee paid to the GP at closing. The acquisition fee ranges from 1% to 5% of the purchase price, depending on the size, scope, experience of team and profit potential of the project.
Think of the acquisition fee as a consulting fee paid to the GP for putting the entire project together. It is a fee that pays the GP for their time and money spent on market research, creating a team (lawyers, CPAs, real estate brokers, etc.), finding the deal, analyzing the deal, raising money, securing financing, performing due diligence and closing.
Asset Management Fee: The asset management fee is an ongoing annual fee paid to the GP in return for overseeing the operations of the property and implementing the business plan. The asset management fee is either a percentage of the collected income or a per unit per year fee.
Refinance Fee: A refinancing fee is a fee that is paid to the GP for the work required to refinance the property.
Guarantee Fee: The guaranty fee is typically a one-time fee paid to a loan guarantor at closing. The loan guarantor guarantees the loan. The GP may bring on an individual with a high net-worth/balance sheet to sign on the loan to get the best terms possible. Or, the GP may sign the loan themselves.
Construction Fee: The construction management fee is an on-going annual fee paid to the company overseeing the capital improvement process. If the GP has a hands-on role in the renovation process or if the GP has their own property management company, they may charge a construction management fee.
Above are ways in which the GPs or management team is compensated. Each deal can possibly be structured differently, above example fees listed are just for illustration purposes.
ProSwift is in business since 2009, registered in California, USA with beliefs and values of partnering with like minded people to grow together and achieve goals of wealth. ProSwift has always delivered on it’s promise and helped 75+ of partners and investors to achieve financial success in their lives. In it’s 15 years journey ProSwift gathered experience in multiple business sectors like Software and IT Staffing, Software Product and Services Development, Real Estate Investments, RE Fix and Flip, Retail and Hospitality, Commercial Real Estate.
ProSwift typically targets an IRR of 18% to 25%, with an equity multiple ranging from 2x to 3x over a 5-year period. Our strategic approach allows us to deliver above-market returns by focusing on high-growth properties and maximizing cash flow.
Our investment team leverages in-depth market research, strategic property acquisition, and value-adding improvements. By enhancing property value and optimizing leasing strategies, we achieve strong appreciation and rental income, leading to higher overall returns.
The Internal Rate of Return (IRR) represents the annualized return of the investment, accounting for the time value of money. The equity multiple is the ratio of the total cash inflows to the initial investment, showing how much an investor’s capital has grown over time.
Our investment horizon typically ranges from 3 to 7 years, depending on the specific asset and market conditions. This timeline allows us to execute our strategies effectively and maximise returns for our investors.
Commercial real estate assets like apartment buildings and self storage operate independently of the stock market. In fact, they tend to fare better in recessions, because more people tend to downsize. They also tend to be safer investments than single family homes because if one tenant moves out, you still have the others to pay down the mortgage.
While we do extensive research to ensure that we are presenting you with an extremely solid investment, with strong positive cash flow and with tremendous potential for appreciation, it is still possible that you may experience the loss of some or all of your investment capital. Further, there is no guaranty that the Property will generate sufficient or any cash to allow the Company to make distributions to its members.
Just like investing in the stock market, mutual funds and other investments, the potential of losing your investment capital must be considered. However, unlike the stock market, your investment is not liquid and you may not be able to sell your investment except at such time as the Company may allow it.
Further, you have no management control of the Company, and therefore, cannot compel the Company to make any disbursement or take any other actions (e.g., sell the Property).
Though we believe that we are presenting an opportunity where the risks usually associated with real estate investment have been appropriately assessed, there are factors beyond our control that could adversely affect the asset and your investment capital.
Examples of factors beyond our control are market crashes, natural disasters, acts of Congress that radically change the investment landscape, acts of terrorism that affect either the property or the financial stability of the economy or both, and others unmentioned or unforeseen here.
That said, our business team takes all the appropriate measures to purchase adequate insurances and do thorougher data driven analysis of all the risks before making investment decisions.
Although these possibilities are highly unlikely, they also must be confronted in making any investment, and ProSwift would be remiss if we did not discuss them upfront so that you as a private investor can consider them in your decision.
All the potential risks are clearly specified in the PPM document or Private Placement Memorandum.