About Capital Group Real Estate Equity Fund

Our unique real estate investment strategic planning is advantageous to our investors.  We give our investors the opportunity to grow their return on their investment and receive larger payouts by limiting the number of investor’s in the group.  We have a minimum threshold of $25,000 to participate as an investor and we only utilize the funds in a single transaction to increase the potential for a larger payout at conversion.

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Return On



Any Questions?

The annual rate of return that one receives on an investment
for all of the capital and cash flows invested. It does not factor
in the net present value of all monies that go into and out of
the investment.
The IRR typically is slightly lower than the Average Annual Return
because the profits at the end upon sale have a lower net present
value than monies that are spent at the beginning of an investment.
Debt Service:Amount of the principal plus interest loan
payment per month or annual. The cash flow that services the debt.
  1. Filter for the following parameters:
    • Highest CAP rates
    • Highest potential for actual vs. virtual returns
    • Potential for appreciation and rent appreciation
      • Population growth & inward migration
      • Employment growth
      • Cost of living
      • Political support of business and development
  1. Office
    • Single Tenant
    • Multi Tenant
  2. Retail
    • Power Center
    • Regional Shopping Center
    • Neighborhood Retail Center
    • Strip Centers
  3. Industrial
    • Single and multi-tenant
    • Manufacturing
    • R&D
    • Warehouse / distribution
  4. Land
    • Landbanking
    • Entitlement
    • Development
  5. Multifamily
    • Garden
    • High-Rise
    • Specialized
      • Student
      • Subsidized
      • Disability
  6. Medical
    • Clinic
    • Hospital
  7. Elder Care
    • Independent Living
    • Assisted Living
    • Nursing Care
  8. Hospitality
    • Flagged / Non-Flagged
    • Motel
    • Hotel
Typically single family assets lead the market cycle, and tend to be
most closely aligned with the current economic cycle. When the
economy dips, single family prices tend to dip immediately as well.
Non-multifamily commercial assets move slower, and tend to lag
compared to economic changes. In addition, commercial tenants
tend to be of higher credit, longer term, and be less likely to move
or default on a lease. Many commercial asset classes tend to be
more stable than single family.
Trust in syndicator As an investor you are a limited
partner in a commercial real estate deal. As such, you are fully
passive, with all management decisions being made by the
syndicator (sponsor).  Therefore, trust in a syndicator, and a
successful track record, is very important when evaluating a
deal Risk tolerance Commercial deals tend to run the gamut
of risk/reward. Low risk investments are typically stabilized
assets that have conservative leases and tenants in place close
to or at full occupancy. These are usually longer hold periods
and are sometimes referred to as “mailbox money”, with a
secure dividend check every quarter.  Other deals are “value
add”, which take on more risk to make substantial
improvements to a property, typically increasing both
occupancy and rents.
Development deals also offer attractive returns at higher risk,
and can encompass land entitlement, construction, and
operation of a new facility.Desire for passive
investments As a limited partner investors take
a passive role in the ownership of real estate commercial
investments.  Sponsors set up full property management,
handle taxes, finances, accounting, and an investor simply
receives predetermined profit splits. It also has the
advantage of limiting liability to amount invested due to
passive nature.
Cash flow vs appreciation Lower risk deals tend to have
more stabilized values but produce cash flow over long terms
that help meet investor cash flow goals. Appreciation and
value add deals can generate a large profit but take
on more risk to attempt those objectives

Am I Allowed To Purchase Real Estate And Other
Non-traditional Assets Using My Ira?

The answer is yes! The Employee Retirement Income Security Act
(ERISA) of 1974 passed the responsibility of retirement saving from
the employer to the employee. Created in 1975, IRAs provide
individuals a chance to direct where their retirement funds are
invested. The IRS code, instead of distinguishing which
investments are allowed, identifies which investments are not
permitted under these laws. Under both ERISA and IRS Codes,
there are only two types of investments excluded: life insurance
contracts and collectibles such as works of art, rugs, jewelry, etc.
Refer to Internal Revenue Code Section 401 (IRC § 408(a) (3)).

Can I Use My 401(k) Funds With My Current
Employer To Purchase Non-standard Assets?

Possibly. If the company has a self-directed 401(k), you may
have the ability to self-direct your 401(k) into these types
of investments. To be certain, contact your current
401(k) administrator.

A syndication (Crowdfunding) is simply the pooling of funds from
multiple investors for a common investment and goal. They
have been around for literally thousands of years. Crowdfunding is
just a modern term with special regulations for syndications.
The advantages include:  Enables Small Investors to
“Play in the Big Leagues”
✓Invest with as little as $50K
✓Take advantage of promoter skills
✓Greater asset class diversification

  • Better high value deals
  • Better access
  • Better negotiations
  • Can qualify for better loans
  • Purchase larger & higher quality properties Professional
  • Economy of scale; Blanket contracts
  • Easier to achieve a diversified portfolio

Easier to get into outside markets

  • Promoter assumes financial or legal risk
  • Does not require day to day management or oversight by the
  • Risk is limited to original investment
  • Promoter has expertise to deal with complex issues
  • Tenant Improvements
  • Leasing Commissions
  • Vacancy issues
  • Negotiation of complex leases
Yes, we have had some investors do a cash out refinance or a
home equity line of credit and use the proceeds to invest in
real estate projects.
The syndication establishes a corporation that purchases the asset
and the investors own shares of the corporation. An LLC
corporation manages the asset for the investors.
Your risk and liability is always limited to the amount of your original
investment. If a cash call is required, you optional additional
investment is typically limited to 10% of your original investment
and that is optional.
An accredited investor is defined by section 501 in SEC’s
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Single Family Residences (SFR) are relatively easy to understand,
liquidate or get cash out from a refi. In order to give good cash
flow the rent should be close to 1% per month of the total
investment amount, are best if they are not built earlier than
the 80’s, and should be in a region with high employment growth
and a broad based economy, not “one horse towns” like N. Dakota.
Duplexes, triplexes, and fourplexes can give slightly higher cash
flow (if everything else is equal), however, you are putting more
“eggs in one address”. They are less liquid and tend to appreciate
less than a SFH. Like all investments it is critical that you buy from
a reputable experienced source and that you get excellent property
management.Multifamily (Apartment buildings – 5 or more units)
properties just amplify the characteristics above, both positively
and negatively. It is very difficult to qualify for a loan if you are not
currently a multi-family owner, however, if you do, or if you invest
with an entity that can, you avoid limiting your Fannie/Freddie loan
restrictions. To reduce and spread your risks it is recommended
that you invest with an excellent, reputable and very experienced
syndicator  .Commercial properties on the average have higher
returns and higher risks. Their advantages are that you have
higher quality tenants, longer term leases, and more predictable
income. Also most are NNN (triple net) which means that the
taxes, insurance, and maintenance costs are passed on to the
tenants. Again, like with multifamily properties, to reduce
and spread your risks it is recommended that you invest with
an excellent, reputable and very experienced syndicator.
  • LLC owns property
  • Investors own share in the LLC
  • Management is separate LLC that has all liability
  • Investors have no liability beyond their investment
  • Managers have all responsibility in managing the asset

Syndications allow one to invest only in products that match their investment objectives Funds generally invest in a portfolio of investments that may or may not meet investors objectives.

REITs are public securities with broad investment objectives that have the volatility of typical market securities. “Investors” can get in and out at will but have no long term commitments.

Most employer-sponsored plans, like 401(k) do not let you roll your account into a new vehicle while you are still employed. Some employers, however, do allow you to roll a portion of your funds. To be certain, contact your current 401(k) provider.

If you can roll your funds into a new account, here is a list of the types of accounts that are eligible:

  • Traditional IRA
  • Roth IRA
  • Individual(k)
  • Health Savings Accounts
  • Coverdell Education Savings Accounts

You may purchase real estate, notes, commissions, options, private placements, accounts receivable, timber deeds, crops, cattle, stock, bonds, mutual funds, certificates of deposit, anything which is not prohibited or collectible as defined by the Internal Revenue code.

The syndication establishes a corporation that purchases the asset and the investors own shares of the corporation. An LLC corporation manages the asset for the investors.

Only on the net income after all expenses and depreciation. The annual net income reported on a typical K1 already takes advantage of the depreciation shelter of the investment.

The future is hard to predict. We track a Harvard Economist who predicted the 2007/8 crash accurately. Capital Group Real Estate Equity Fund only invests in asset classes and metros that have in our opinion lower than average risks based on the last recession. If an asset and metro drops in value, we feel that our investments will fare better than most other investments that one might consider.

Most real estate syndications are offered under section 506 of Regulation D in the SEC’s manual. 506(c) offerings allow full solicitation to public forums, however they require all accepted investment partners to be accredited. 506(b) allows limited solicitation to a sponsor’s network, and thereby allows for both accredited and non-accredited investors to take part.

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