How will I see a return?

Investors can see returns in multiple ways, including cash distributions based on prorated share of Cash-flow, tax benefits such as Depreciation, growth in value via Appreciation, and Amortization through debt service. Palmwest handles all accounting and distributions. Investors will receive quarterly reports and projected distributions annually.

How long does Palmwest hold assets?

Palmwest Capital’s intent is to hold assets for 10+ years, but we have sole discretion to extend the life or even decrease the life after you have invested. The reason for this is we want to maximize the value of the real estate investments. We do not want to be forced to sell investments when the market is bad, nor do we want to pass up the opportunity to sell investments when the market is great. We are long-term investors and the more time we stay invested in a property, the better chance we have of capturing property appreciation from inflation and rising rents.

What type of returns should I expect?

For stabilized, income-producing property investments, we target low- to mid-teens equity returns on an annualized basis over the entire life of the investment. We may target equity returns that are higher or lower depending on the type of investment and amount of leverage utilized. For example, if we invest in a property that requires significant repositioning through capital and marketing investments, we may forego near-term distributions to achieve a higher value on the sale of the property in the longer term. We target higher equity returns for these types of investments as they involve more risk.

Our targeted returns are just that, targets. Investment involves risk and our actual returns may be higher or lower and may include a partial or total loss of your investment. Past performance does not guarantee future results - please read these disclosures.

Is there a minimum investment?

We typically have a minimum investment of $25K for most funds, and we hope that any potential investors are looking to make a meaningful investment of $50K or more, but we can certainly consider less depending on individual circumstances or comfort level. Majority of Investors commit $50K-$200K.

Will Palmwest have additional deals in the future?

Yes - all current Investors and new investors will have access to future deals.

What type of fees do you charge?

Palmwest follows the industry-standard fee structure for the Managing Member, with reduced fees and trigger events. The industry standard is 3-3-3, and occasionally 2-3-2, but Palmwest currently only implements a 1-3-1, passing the savings onto our Investors. Additional information can be found on our fees page.

What is my risk?

All investments involve risk, including those investments made in Palmwest Capital’s Funds. We do not guarantee that you will earn our targeted returns. There are many factors that can impact the performance of your investment, many of which are not under our control. Please keep in mind, investing involves risk and may result in partial or total loss of your investment. Prospective investors should carefully consider investment objectives, risks, charges, and expenses, should consult with tax and legal advisers before making any investment decisions, and every potential Investor should read these disclosures.

We do believe that investing in private real estate poses less risk than many other types of investments. Private real estate has historically been less volatile than the stock market, and properties generally appreciate over time as inflation tends to push rents up. Additionally, we conduct extensive research and due diligence on every property investment and have a high degree of conviction that our risk is balanced with our targeted returns.

How often will I receive a distribution?

Returns and K-1s are distributed annually, however it is possible as assets mature and stabilize, and cash-flow increases, that additional distributions could occur during the year.

Can I remove my money or sell my position early?

Yes and no. Palmwest Capital reserves the right to approve all sales or exits. Please read and have your counsel review the Operating Agreement and particularly Section 7 Transfer And Assignment Of Interests, and Section 8 Purchase Price And Terms for more details.