FAQs

Offering is used to define the process in which a private or public company offers securities for sale. The term “offering” may be synonymous with “deal” or “investment opportunity”. https://www.investopedia.com/terms/o/offering.asp Frost Kapitals’ offerings will be found on the Invest page.

A security is what you own when you invest in the stock market. It is the share of ownership in a company. When you invest with Frost Kapital, you secure a stock ownership within the offering. You own a percentage interest of the property purchased by Frost Kapital. https://www.investopedia.com/terms/s/security.asp

Frost Kapital works both accredited https://www.investopedia.com/terms/a/accreditedinvestor.asp and with non-accredited investors https://www.investopedia.com/terms/n/nonaccreditedinvestor.asp.

Frost Kapital will identify a property for acquisition and then coordinate a group of passive investors who will contribute cash for the purchase of the property (less any bank loans), closing costs, operational costs, operating capital and reserves. Frost Kapital will conduct due diligence on the real estate investment prior to acquisition and will manage the investment on behalf of the investors during ownership of the property until such time as it is eventually re-sold. In exchange for their contributions, investors will receive a membership or ownership interest within the investment and a return on their investment. Investors will receive the investor packet containing all the important information related to the investment prior to their funding approval.

Frost Kapital provides an investment platform for passive investors to review the deals and jointly invest in real estate opportunities based upon their interest. Once you register through our website and find an opportunity that interests you, you can reach out to us offline so we can guide you through the investment process so you can finalize your investment.

Subsequent to expenses (including any loan payments) and setting aside reserves, any outstanding cash flow from operations, refinance or sale of property is considered “distributable cash.” While in possession of the property, distributable cash is generally assessed and distributed on a quarterly basis. The earnings from any refinance or sale of a property will be used to return all or part of the investors’ capital contributions, and any outstanding distributable cash will be distributed to the members of the company and the syndicator. Investors will receive cash in proportion to their respective percentage interests in the company.

Frost Kapital does not charge any fees to view these investments online. We have built this marketplace for investors to explore deals, review metrics and invest as appropriate. Each deal offered through the platform is custom with different fees. E.g Acquisition fee, Asset management fee, etc.

The minimum investment with Frost Kapital is only $20,000.

Investing with an IRA is a popular way to invest with Frost Kapital. We make investing with your IRA a fast and smooth process.

Frost Kapital earns money from the real estate we own with our partners. This includes rental income & profits from the sale of properties.

Frost Kapital invests in multifamily apartments. The property description will be provided for each investment opportunity that is made available to investors.

Frost Kapital investors will typically earn distributions periodically during operations, or on refinance or disposition of the property. A typical syndication will provide equity investors a preferred return (typically 8% to 10%) against their investment amount, with any residual distributable cash split between the investors and syndicators (usually 75/25 split) unless otherwise specified within the Offering. Debt investors may earn simple, preferred interest on the amount of their investment, while the syndicator and/or equity investors keep the rest.

Frost Kapital specifies a targeted hold period for each investment. This is an indication of the amount of time investors should expect their funds to be held in the real estate investments. Frost Kapital disburses earnings to our partners on a quarterly basis.

All of the details for each investment property is made available to view online however Investors are welcome to visit the property onsite at their own expense.

The “Investment Agreement.”is a document that can be signed online during our investment process.

Debt financing is an intrinsic part of our multifamily holdings. Frost Kapital will procure the loans directly and be responsible for its repayment.

Investors can receive financial statements & performance updates once per quarter through emails

The Form K-1 will report Investors taxable income from the investment that can be shared with your accountant or tax professional

While ownership cannot be sold publicly, it is still possible. Frost Kapital holds a first right of refusal to purchase any ownership that is for sale. If Frost Kapital chooses not to purchase your ownership, then we can assist in matching a prospective buyer within the private network to help facilitate the sale. In essence, Frost Kapital must approve each sale. These transactions are subject to certain guidelines under the Securities Act of 1933. Please refer to the offering documents and your legal counsel if you chose to sell your securities with capital, legal and accounting costs that may be associated with a sale. Investing with an IRA is a popular way to invest in Multifamily properties. We make investing with your IRA a fast and smooth process.

We’re always ready to to help in case there are any questions or concerns, please feel free to email us at contact@frostKapital.com

In a constant and steady rate each quarter members get paid for their earnings from properties they invested in. Investment returns can also be used to pay off taxes using a K-1 form. We provide equity investors a preferred return (typically 8% to 10%) against their investment amount, with any residual distributable cash split between the investors and syndicators (usually 75/25 split) unless otherwise specified within the Offering. Debt investors may earn simple, preferred interest on the amount of their investment, while the syndicator and/or equity investors keep the rest. There is also the option to invest using an IRA fund. We will provide the tools and guidance to successfully invest.