Solo 401k, SDIRA yes as long as they are invested as an LLC.

Not only does AJ invest into the deals he assumes all liability by solely signing on the note. He also invests his capital into the quality team finding, syndicating, and managing the deals.

Pro Rata equity ownership by ways of Limited Partnerships through share options based on each investor’s capital contribution.

Yes, once. Not for a negative reason though and was optional for the investors to participate. We had an opportunity through value engineering to expand rentable square footage through adding additional units.

You are investing in both the physical asset and also the cash flowing business.

Please consult your CPA and legal team.

You will receive a K-1 after the close of each year. Our syndicated deals are prioritized over the rest of our portfolio. You should expect to receive your K-1 around mid March.

It’s safe to assume distributions will not go out any sooner than 6 months after acquisition. This is to confirm that all representations made during the purchase of the facility are confirmed to be accurate and true.

Our underwriting and models are conservative, illustrating the refinance event happening around year +/- year 4 but we never underwrite any of our deals to be dependent on a refinance to be profitable. The refinance event is the cherry on top, an accelerator to pull equity from the investment. If the market conditions or business operations don’t support a refinance, we will continue to maximize operations, increase revenue and distribute quarterly cash flow (if applicable) until the environment changes. This means; the investors maintain their favorable positions with a preferred return and the higher % split until 120% cumulative cash on cash returns are met. Disclaimer: each deal is structured different.

Please refer to your offerings Operating Agreement for specifics on structure and distributions.

Our underwriting methods are constantly evolving based on our past successful strategies and refined through current market conditions and lessons learned. Please watch our most recent deep dive into our strategy here.

Self storage properties, can also have major differences when it comes to which assets can depreciated faster. For example, climate control systems depreciate faster, larger asphalt surfaces depreciate faster, etc. On average you can expect around 25% of the property can be reallocated to faster depreciation, however we have seen up to 40%.

Based on our first 6 value-add deals and with taking the bonus depreciation in year 1, we have seen anywhere from 0.95%-1.93% in the subsequent years.

Without taking bonus depreciation, the studies indicated that the annual depreciation amounts could be anywhere between 1.67%-2.56%.

Want more information on Depreciation through Cost Segregation? Listen to the AJ Osborne Podcast – Episode 125 – The Best Real Estate Investment Tool – with Yonah Weiss, Cost Segregation Expert.