GALEZGROUP, INC.

What is a Self-Directed IRA LLC? A Self-Directed IRA LLC (SDIRA) is a type of individual retirement account that allows retirement investors to use their IRA funds to make alternative asset investments. Self-Directed IRAs are similar to traditional IRAs, but they provide more investment options to IRA holders. By using this retirement structure, you can diversify your investment opportunities and invest outside of stocks, bonds, mutual funds, and other traditional assets. You can still make traditional asset investments, but if you're more comfortable investing in assets like real estate and precious metals, the Self-Directed IRA LLC allows you to do so. Ultimately, this diversifies the assets inside of your retirement account. This self-directed plan gives you more control over your retirement funds. However, it's important to note that not all Self-Directed IRAs are the same. As a result, you will not find this term anywhere in the Internal Revenue Code. for more info go to: https://www.irafinancialgroup.com/self-directed-ira-llc-benefit/

Yes! You can invest your 401(k) in real estate when you establish a Self-Directed individual retirement account, such as a Solo 401(k) or a Roth Solo 401(k) for real estate. When we say "invest your 401(k) in real estate", we are not referencing a traditional, employee sponsored 401(k). In fact, you cannot use your 401(k) to invest directly in real estate. You can use a Solo 401(k) if you're a small business owner with no employees or a self-employed individual. For more info go: https://www.irafinancialgroup.com/solo-401k-benefit/

The cap rate is a ratio of two variables – net operating income and the current value or sale price of a property – which helps to determine the potential return on an investment. CAP Rate is: Capitalization Rate = Net Operating Income (NOI) / Sales Price (Market Value)

No, everyone calculates NOI in the same way. Some investors use 12-month trailing income (T12) while others will make assumptions based on predictions of higher income in the next 12 months. This is referred to as trailing vs. forward-looking cap rates. Altering these assumptions can produce radically different cap rate results. In some respects, this discrepancy partially explains why investors are willing to pay very low cap rates of below 3%. When accepting a sub 3% cap rate, the investor is less focused on the trailing cap rate and, instead, is targeting a substantially higher forward-looking cap rate. That investor has likely underwritten the acquisition with an expectation that they can boost NOI by raising rents or lease current vacancies. This future improved cap rate is referred to as the “ stabilized cap rate ”.

Direct real estate investing involves buying a stake in a specific property. For equity investments, this means acquiring an ownership interest in an entity that directly owns an asset such as an apartment community, shopping center or office building. One of the advantages of direct investing is greater control in decision making, particularly when it comes to application of the investment strategy. For example, in a direct investing format, an investor can select properties with criteria based on location, product type (e.g. office vs. industrial) or structure (e.g. equity, preferred equity or debt) with full transparency into an array of information on the asset including tenants, physical asset condition, and operating performance as well as information on the key players involved, including the operating company and property manager. Direct investing empowers individuals with the opportunity to invest in what they know and are passionate about, which can range from criteria as broad as a metro to as granular as a specific street corner and applied to properties that may be located in their own backyard or out of state.

Is a profit distribution preference (usually given to the passive investors as incentive) 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 "T" It refers to the trailing history and the "12" refers to the amount of months. It is usually used to calculate the NOI.

Is a Latin frase and it describes certain clauses within a variety of financial vehicles. Often, these clauses are in place to ensure the associated financial product is functioning as an equal to all similar others.

What Is a Cash-on-Cash Return? A cash-on-cash return is a rate of return often used in real estate transactions that calculates the cash income earned on the cash invested in a property. Put simply, cash-on-cash return measures the annual return the investor made on the property in relation to the amount of mortgage paid during the same year. It is considered relatively easy to understand and one of the most important real estate ROI calculations. Cash on Cash Return=Annual Pre-Tax Cash Flow/Total Cash Invested

The management acquisition of these properties requires a fair amount of work to put a deal together, manage a deal throughout its life cycle, and execute on a business plan to produce a favorable outcome for stakeholders. We have two primary compensation methods: 1) Profits interest or “promote” 2) Fees. Our structure our fees and profits are set up in a way that aligns with our investors interests as set forth in out term sheet that will be provided.

The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. The internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Is a bullet-point document outlining the material terms and conditions of a business agreement. After a term sheet has been "executed", it guides legal counsel in the preparation of a proposed "Final Agreement"

Is a financial services alliance formed for the purpose of purchasing, managing selling etc. a large apartment transaction that would be out of reach due to the size for the entities involved which allows companies groups and individuals to pool their resources and share risks and returns Is usually a partnership between "General Partners also referred to Sponsors)" and Limited Partners the Passive Investors to acquire manage and sell an apartment community while sharing in the profits

Forced Appreciation occurs when the net operating income is increased by either increasing the revenue or decreasing the expenses forced appreciation typically occurs by adding value to the apartment through renovations and or operational improvements.

Is the funds used by a company to acquire, upgrade and maintain a property also referred to as CAP X and expenses considered cap x when it improves the useful life of a property and is capitalized, spreading the cost of the expenditure over the useful life of the asset. Include both interior and exterior renovations for example new roof, renovating the clubhouse, etc...

Is a decrease or loss in value due to wear, age or other cause to the property.

Is the partners portion of the profits which are sent on a monthly, quarterly or annual basis at the refinance and or at the sale of the property.

For Real Estate Syndication is these costs that include the down payment for the mortgage, loan closing costs, financing fees, operating account funding and the fees paid to the general partnership for putting the deal together also referred to as acquisition fee.

Your funds will be sent directly to a Florida Regulated Escrow account until the closing of the property.