Frequently Asked Questions (FAQs)

Birchstone Investments, LLC (“BSI”) is a real estate investment and management firm located in Charlotte, North Carolina, that was created to bring together like-minded investors who want a vehicle for their money to work as hard as they do. BSI specializes in acquiring and operating multifamily assets that are undervalued or under-performing, targeting properties that promise both current operational income and robust capital appreciation in markets with positive demographics, strong submarket rent and occupancy growth.

Birchstone is primarily focused on assets located in the Southeast and Mid-Atlantic United States – areas that are enjoying renewed growth, with lucrative investment opportunities in certain areas. In addition, we periodically consider properties in other areas of the United States that meet our investment criteria.

No, Birchstone raises funds on a deal-by-deal basis.

We have taken this approach for two reasons. First, this makes it so that we are never forced to put money to work; we can be selective and only take advantage of investment opportunities that we believe truly offer attractive risk-adjusted returns. Secondly, it allows us flexibility over hold periods; we get the freedom to choose to exit an investment at a particular time that maximizes investment returns as opposed to having to wait until the end of the fund life.

Birchstone works primarily with accredited investors but will also accept sophisticated investors for some investment opportunities.

The Securities and Exchange Commission (SEC) defines an accredited investor as someone who has either (1) a net worth that exceeds $1 million, excluding the value of their primary residence or (2) an annual income in excess of $200,000 (or $300,000 including spouse) for the last two years and expects that to be the case this year as well.

Completing the Investor Questionnaire validates that you are an accredited or sophisticated investor and thus allows Birchstone to present future investment opportunities to you.
Any time money is pooled together from two or more investors with the expectation of making a profit and where the investors are not involved with management decisions, a security is created. Securities are regulated by the SEC.
A private placement memorandum (PPM), also commonly known as an offering memorandum or offering document, is a vitally important legal document that discloses the objectives, risks and terms of a proposed investment. The PPM will be distributed to potential investors whenever a sponsor is seeking to raise funds via a private placement.
A private placement is an offering of securities, typically to a small select number of potential investors, that is not required to be registered under federal or state securities laws. Private placements are exempt from registration because they consist of high-dollar offerings made to accredited investors or investors that are highly sophisticated.
Each investment opportunity will have a different number of investors. Generally, the fewer the better, as most investors prefer to retain a higher proportion of cash flow and equity.
No. Birchstone Investments, in conjunction with its preferred property management firm, will handle all day-to-day activities (e.g. buying and selling, property maintenance, etc.). Investors will not have any management responsibilities.
Each property is placed into a single purpose partnership structure. A Limited Liability Company (LLC) is a common entity selection. The LLC will own the apartment complex, and the investors in turn own the LLC
You are purchasing investments units in an LLC that will have an ownership interest in the multifamily property.
Your initial investment may be returned to you when either the property is sold or if the property is refinanced at a higher value. Investors will receive distributions of cash flow, with payments generally sent out quarterly.
Each property will have a different hold period, depending on the exit strategy. Typically, we target a 3- to 7-year hold period.

The minimum investment amount is $50,000, although this amount may vary from property to property.

Every deal will have a different investment return based on a variety of factors such as the age, location and exit strategy of the property. The investment return is discussed in the PPM.
You will receive monthly updates about the property within our online investor portal. Each month you will receive an executive summary and financials on the property’s performance.
You can fund your investment by using money in a checking, money market, CD or brokerage account, etc. or money in a self-directed IRA.
Funds will be deposited into the LLC bank account and paid out to seller at closing.
Money is only wired after your review and approval of the investor documents.
There are benefits to using a self-directed IRA to fund your investment since tax is deferred while the money grows, and you can make large returns with no immediate tax implications.

You must consult with your own tax professional for specific tax advice. Some items to consider:

  • Investors will receive a Schedule K1 reporting income or losses from the property.
  • Investors are allocated depreciation expense that may be beneficial for tax purposes.
  • Investors may be required to file additional state tax returns.
  1. If you haven’t done so already, please complete the Investor Questionnaire.
  2. After completing the IQQ, Birchstone will review the document and contact you.
  3. Once approved as an Investor, you will be granted access to Birchstone’s online investor portal. The investor portal is where you will find all applicable information about any open investment opportunities.

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