At Spruce Investments we provide radically accessible real state investing opportunities for investors.
Spruce Investments is a veteran owned national real estate investment firm offering passive real estate investment opportunities in growth markets throughout North and South Carolina.
Spruce Investments strives to serve current and veteran members of the military, law enforcement, and first responder career fields. We achieve that mission by providing a stable investment vehicle to help you reach your financial goals.
Additionally, we believe in educating our investors to allow them to make the best investment decisions for themselves and their families. Passive real estate investment should be simple and transparent regardless of your experience level.
Our mission is to help you spend more time doing the things you love by investing in residential and commercial real estate.
Protect your money from inflation and stock market volatility by investing passively in real estate.
Invest your money in an asset that works best for your time frame and risk tolerance.
Use your passive income to spend more time enjoying family life, vacation, and pursuing your passions.
Be at ease knowing that your investment is managed and grown by a team that values integrity and character above all else.
We find properties that have multiple opportunities to increase revenue and quality of life for tenants.
We provide frequent updates on the progress of your chosen investments and are committed to quick responses on any inquiries.
We are proud real estate experts leveraging the power of smart real state.
We strive to ensure that our investors understand the fundamentals of passive real estate. Here are some frequently asked questions.
A general partner (GP) is also known as the syndicator or sponsor of the deal. They are responsible for overseeing and managing the project. The limited partner (LP), also known as the passive investor, provides equity to carry out the project.
The general partners create the minimum investment amount per deal with most starting at a 25-50k minimum and a $250k maximum.
The general partners create the minimum investment amount per deal with most starting at a 25-50k minimum and a $250k maximum for an apartment syndication. For fix and flips, the minimum could be as low as $5K depending on the opportunity.
An accredited investor must exceed a net worth of $1,000,000 excluding a personal residence or an individual income above $200,000 in the last two years or a joint income with a spouse above $300,000.
Distributions are generally made quarterly and begin to accrue once the deal closes. Whether distributions can be sent will be based on the strategy, implementation, and stage of the general partner's project.
The LP will receive a monthly update on the status of the deal. Monthly updates will include vacancy rates, renovation plans, where the deal stands in the business plan, new leasing rates compared to projections, what capex has been started, any updates on the market etc.
Yes, you can invest through a self-directed IRA. This will allow you to invest tax-advantaged retirement funds into real estate. You must have an entity that specializes in SD (Self Directed) accounts that will manage the transaction, paperwork, and financial reporting. This custodian will protect you from any violations and typically charge a fee.
Depreciation: An income tax deduction that allows a taxpayer to recover the cost of a real estate investment that accounts for the property’s exhaustion or “wear and tear” over time. This is a paper loss that effectively offsets the cash flow generated on an investment property by reducing the income thus lowering the taxes owed.
Cost Segregation: Accelerated depreciation that separates the personal property from land and building improvements. It assigns a useful life to each asset segregated
Bonus Depreciation: This is an enhanced version of accelerated depreciation in which investors can take all of the front-loaded depreciation in year one instead of waiting over the 5-15 years. This is extremely helpful for those that have significant K-1 passive activity gains from other sources.
Your investment is made into an LLC that acquires the property. Each investor within the LLC will receive a K-1. This is a tax form provided for investors with information on their share of a partnership’s taxable income. This is not subject to a federal or state income tax but is used for an individual to report his/her share of the partnership’s income, deductions, gains, and losses.
The PPM is a private placement memorandum. It is a legal document provided for investors with full disclosure on their investment based on the federal securities law. It includes what is required of investors, what fees and commissions the Sponsor earns, and a full description of the investment property. It includes a summary of the subject property, all warnings and disclosures of the investment, the legal agreement, and the subscription agreement.
Investor funds go towards the down payment for the loan, renovation, and capex items, fees charged for putting the deal together, and initial operating and reserve funds for the property. The PPM will have a detailed section on the uses of equity.
The GP will provide their projected business plan for LP’s so the LP can have the opportunity to decide whether this opportunity is right at this time for the LP. The business plan will include the holding period requirement to keep the capital in the deal until the project has been completed. Typically these investments are illiquid until a refinance or sale event occurs to allow for a return of capital.
