What is Dolan Capital?
Dolan Capital is a private real estate investment firm founded by Coty Dolan. Dolan Capital is financed by private sophisticated & accredited investors who wish to beat the returns of the stock market while also receiving cash flow and the tax benefits of real estate.
We provide our clients by providing with real estate investment opportunities that achieve superior risk-adjusted returns through the acquisition of apartment complexes, and ground-up development projects throughout Florida, Texas, Georgia, Tennessee, Alabama, Mississippi, and the Carolinas.
Who are the parties involved?
A real estate syndication typically involves the “general partners” who organize the syndication, including finding the property, securing financing and managing the property; the general partners are sometimes referred to as the “sponsors” or “operators”.
The group of people who provide the cash investment are often referred to as “passive investors” or “limited partners”. In return for their investment, the limited partners receive an equity share in the syndication along with cash flow distributions and profits.
Who can invest with Dolan Capital?
Our real estate investment opportunities are open to both accredited & sophisticated Investors.
What is an Accredited Investor?
The Securities and Exchange Commission (SEC) defines an accredited investor as someone who has an annual income of $200,000 (or $300,000 joint income) or a net worth of at least $1M, not including your primary residence. Visit the SEC website for additional information and resources.
What is an Sophisticated Investor?
Many of our multifamily syndications are 506(b) offerings, which means they are open to unaccredited investors, but these investors have to be “sophisticated”
A sophisticated investor has enough knowledge and/or experience in investing in alternative investments such as real estate, oil, or precious metals. They may have made previous investments outside the stock market or perhaps they attended an investing seminar. Whether or not they have actual investing experience, the person has the ability to make an informed decision about a particular syndication offering.
Equally important to being “sophisticated”, the investor needs to have a pre-existing “substantive relationship” with the deal sponsor (i.e. the partner or partners who are presenting the opportunity). While the SEC doesn’t specifically define what “substantive relationship” means, it provided clues in this letter to a company called “Citizen VC”.
When you become an investor with Dolan Capital you are taken through a “get to know you” process. These steps allow us to gather pertinent information such as financial info and goals, risk tolerance, investment experience, etc.
What is the investment process?
Great you have decided to Invest with Dolan Capital!
Now, what is the investment process?
If you are a non-accredited investor we are assuming that you have a “substantive relationship” with us by this point. If you’d like to establish a substantive relationship with us, please join our Dolan Capital Investor Network so that we can get to know each other a bit more. We can then present you with upcoming opportunities.
Assuming you’re ready to go we have a live investment opportunity, here is what happens next.
STEP #1: LEARN ABOUT THE OPPORTUNITY:
The best way to learn about multifamily investment opportunities is to join our Dolan Capital Investor Network, if you already have you’re good to go.
We send out regular emails with educational content. And when a multifamily deal comes through, we forward an Executive Summary and set up a live webinar to present the opportunity, and give you the chance to ask questions.
STEP #2: EXPRESS INTEREST VIA A “SOFT COMMIT”:
If you’re interested in the opportunity, the next step is to reach out telling us how much you’d like to invest in the fund or syndication. Our current minimum is $100k.
The “soft commit” doesn’t put you on the hook yet, but it does give us an idea of whom we can expect to invest in the syndication deal. And the “soft commit” window typically stays open for a couple of days after the live webinar. So, if you want in, act fast!
STEP #3: REGISTER ON THE INVESTOR PORTAL:
If you haven’t already registered on the Dolan Capital Investor Portal, please do so now, you will fill out an online form to get a username and password. The Portal allows us to communicate with you securely through the rest of the process.
STEP #4: SATISFY THE MINIMUM REQUIREMENTS:
Next, we double-check that you are either an accredited or sophisticated investor.
If you’re not accredited, and we don’t know you very well yet, we may ask you to hold off until the next syndication. Join our Investor Network so you do not miss out.
STEP #5: MAKE A FORMAL INVESTMENT OFFER:
Those who raised their hand with a “soft commit” now have the chance to let us know they are serious. At this point, you promise a specific amount of money to the deal.
We usually give prospective investors a day or two, after the “soft commit” window has closed, to make this formal offer. But remember, it’s all on a first-come, first-served basis.
STEP #6: REVIEW AND SIGN THE LEGAL DOCUMENTS:
At this point, through your Investor Portal, you will receive & sign the necessary documents to verify your commitment:
Private Placement Memorandum outlining the deal’s structure and risks.
Operating Agreement covering the GP and LPs responsibilities and ownership ratios.
Subscription Agreement (summarizing the number of shares you own in the LLC set up as owner of the apartments).
Accredited Investor Qualifier Form (if applicable).
Direct Deposit form to receive your distributions automatically.
Once you looked through the legal documents, you sign them online via DocuSign.
STEP #7: WIRE THE MONEY INTO THE ESCROW ACCOUNT:
Once you’ve signed on the dotted line, you receive the wiring information and send your funds to the escrow attorney. Congratulations, you are a Multifamily Real Estate Investor!
Don’t forget, multifamily deals are a limited-time offer. We can’t hold your spot if you don’t wire your money. (And if you send money after the deal is full, we’ll wire it back to you.)
STEP #8: WAIT UNTIL CLOSING:
Now, you sit back and relax. And wait for the syndication deal to close. This usually takes between 30 and 45 days, depending on the deal.
We typically do a live webinar at closing and monthly updates moving forward.
What tax documents will I receive?
After the books are closed on a year, we will send out an annual report as well as the K-1 tax documents.
The annual report should provide a narrative of how the project performed versus what was projected, and if not, why not, and what is being done about it.
It should provide ProForma projections for the new year along with the plan to achieve those projections.
Finally, it should provide the complete P&L and Balance Sheets (or be available upon request).
We work with our CPAs at CliftonLarsonAllen , to send out K-1s no later than the end of March to give investors enough time to file their own taxes.
Fund vs. Syndication?
At Dolan Capital, we offer our investors both fund and syndication opportunities. But what is the difference?
Real estate funds & real estate syndication are both where a group of people pool their resources to purchase real estate, often a large property like an apartment building, which would otherwise be difficult or impossible to achieve on their own.
However, a Syndication is going to be a property specif based Investment, where a Fund is going to generally target an asset class with specific returns metrics.