FAQs
Read most frequent questions
How does Fidelity Business Partners work?
Fidelity Business Partners is a private equity real estate investment firm. We focus on acquiring institutional-quality multifamily assets and making these high-performing opportunities available to busy business professionals. Our partners join our investment group to participate in large-scale real estate projects that are typically reserved for institutional players. Through our network, investors are able to:
- Access and review vetted real estate investment opportunities.
- Securely invest in multifamily real estate with a focus on recession-resilience.
- Partner with a team of full-time, disciplined real estate operators.
What are the fees?
Each project features a transparent, industry-standard fee structure, typically including an acquisition fee (1% to 2%) and an asset management fee (2%). These fees support our vertically integrated model, ensuring professional oversight and institutional-grade reporting for the life of the investment.
Who can invest with Fidelity Business Partners?
We work with both accredited and qualified non-accredited investors who are looking to diversify into real assets with a durable advantage.
What is the minimum investment?
The minimum investment is $50,000.
How does Fidelity Business Partners make money?
Our interests are directly aligned with our partners. We generate revenue through the performance of the real estate we co-own, including quarterly rental income and profits realized upon the strategic sale of the assets.
What types of property can I invest in?
We specialize in mid-rise and garden-style multifamily apartments, typically with 80 units or more. We focus on high-demand markets including San Diego, Houston, and San Antonio.
What is an offering?
An offering refers to a specific investment opportunity in a private real estate asset. Each offering is backed by our rigorous underwriting discipline and is detailed in a comprehensive memorandum for our investment group.
What is security?
A security is what you own when you invest in the stock market. It is the share of ownership in a company, which is what you own when investing with Business Fidelity Partners. You typically own a percentage interest of the company that owns the property.
What are the risks?
While real estate involves inherent market risks, our strategy is built on recession-resistant underwriting. We target double-digit overall returns (excess of 10% per year) based on conservative, educated assumptions. We prioritize capital protection and durable cash flow over high-leverage speculation.
When and how can I get my invested capital back?
We define a targeted hold period for each asset, typically between 3 to 7 years. Capital is usually returned to investors through a strategic sale of the property or a mid-term refinance, once the value-add business plan has been executed.
Can I physically see the properties I invest in?
We prioritize consistent quarterly cash flow. Distributions are typically disbursed to our partners on a quarterly basis, reflecting the property’s operational performance.
What documents need to be signed?
Each offering will have an “Investment Agreement.” This document will be signed online during our easy 4 step investment process.
How often will I receive an income from my investment?
We prioritize consistent quarterly cash flow. Distributions are typically disbursed to our partners on a quarterly basis, reflecting the property’s operational performance.
Do the properties have debt?
Debt financing is an integral part of our multifamily holdings. Our company will procure and sign on the loans directly and be responsible for its repayment. We are very risk adverse when it comes to debt and always focus on having stronger cash flow over higher leverage and the potential of higher returns. The debt structure, if any, will be described in each specific investment opportunity.
How do I receive updates on my investments?
Transparency is a pillar of our firm. Partners receive institutional-level reporting, including financial statements and performance updates, at least once per quarter via our secure investor network.
How do I pay taxes on profit from my investment?
Our investors receive a Form K-1. You simply forward this document to your accountant or tax professional, and it’s as simple as that. The Form K-1 will report your taxable income from the investment.
Can I sell my ownership?
While there is no public market to sell your ownership, it is still possible. Business Fidelity Partners must approve each sale and Business Fidelity Partners also holds a first right of refusal to purchase any ownership that is for sale. If Business Fidelity Partners chooses not to purchase your ownership, then we can assist in matching a prospective buyer within the private network to help facilitate the 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 Business Fidelity Partners, legal and accounting costs may be associated with a sale.
Can I talk to someone if I need to?
Absolutely. We are a relationship-driven firm, not an anonymous portal. Our team is available to discuss our strategy, our underwriting, or your specific investment goals. Give us a call at our number +1 760-350-9474 .
