The payment structure for a multifamily investment property happens in two parts.
First, there is an amount that you get paid from the rent of the tenants. This is distributed every three months (quarterly). So, every three months you’re going to get a certain amount of money, that’s basically from the rent that’s collected, that goes to you as the investor.
Second, every time there is what’s called a “capital event”, which is either a refinance or a sale, you’re going to get a significant amount of money all in one shot.
With multi-family real estate, it’s not that you get the same amount consistently for the entire five-year period or tenure period. It’s that you get a certain amount for the rent and then during the refinance or the sale, you’re going to get a significant amount of money back. And that’s essentially how the structure of the payments are set up.
You get paid again every three months from the rent, and whenever there’s a sale or refinance, you’re going to get that money also in that quarterly distribution. It’s very exciting, especially when people invest, let’s say $100,000, and eventually every single year they get $7,000 to $8,000. And then eventually when there’s a sale or refinance, they can get another $50,000 to $60,000. Again, it’s very, very exciting. Let us know what numbers you’re considering investing, and we’ll outline a sample payment schedule for you.