We started as a small group of physicians investing together. Our ability to find superior investment opportunities has allowed our network to grow substantially. Timberview Capital simply formalizes our process and network.

I spent most of my time doing research – researching investment opportunities. My goal is to find the best teams, with the best properties in the best geographic locations. By  best teams I mean those with the ability to formulate and execute a business plan with superior returns for their investors. I’m looking for those with a significant collective experience and consistent track record of solid financial performance.

By best properties, I mean strong performing properties with substantial upside. We look for properties that can likely double our money in 2 to 5 years. The best locations will have significant population size and growth. I also look for high job growth and diversity. I like to see high median, household income and high median home price. High income tenants can pay high rents. 

When you can check all three boxes, great team-great property-great location, you probably have found a home run opportunity. Keep in mind that these are investments, so there are risks and they don’t all perform as expected. Nevertheless, if they are carefully vetted most of them will perform well. 

We do the research so you don’t have to. We strive to check all the boxes: a great property, in a great location, with a great team. We are not limited to our own team and resources. We seek out the best teams, with the best properties in the best areas, with the best returns across the United States. At Timberview Capital we invest alongside our partners. With our own money invested alongside yours, we make sure that every deal is fully researched to ensure maximum returns and minimum risk.

The Securities and Exchange Commission (SEC) defines an accredited investor as either an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

OR

An individual with with a net worth greater than 1 million excluding their primary residence. 

If an offering is classified as a 506C by the SEC only accredited investors are able to invest.

For a 506C investment, you will be required to prove your Accredited Investor status. There are companies that do this for a fee. I recommend asking your CPA for a letter confirming your accredited investor status.

Some of Timberview’s deals are classified as 506(c), which require accredited investor status to participate. However, we also offer 506(b) deals, giving non-accredited investors a chance to get involved. These opportunities are not posted on our website or promoted publicly, so to access them, you’ll need to be on our 506(b) investor list.

If you’re interested, schedule a call via www.timberviewcapital.com/contact to join our investor list and stay informed about 506(b) opportunities. Timberview serves investors of all experience levels, so don’t let beginner status keep you from getting started!

There are a lot of ways to do this. My preference is to keep a steady flow of new investments coming into my portfolio as my previous investments go full cycle and are sold. Most of these investments are doubling my money (or more) over 1 to 5 years. This creates exponential growth and a steady flow of capital so I don’t miss new great investment opportunities. Obviously it takes a few years to reach the point that you have a steady flow of assets being sold. The longer you sit on your hands and wait, the longer it will take. I recommend that you spread your capital over several investments when possible. Be careful to choose investments that perform well by carefully vetting the team, the property and the geographic location. If you can check all 3 of these boxes, it will probably be a home run. If you don’t have the ability, time or experience to carefully vet the deals, invest along side of people who do. That’s part of the reason I formed Timberview Capital.

The year I founded Timberview Capital, I lost 3 fantastic investment opportunities because we didn’t raise enough capital to close the deals. As Rod Khleif says – multifamily is a team sport. You don’t have to be great at everything. The larger the network, the better chance we will have the capital to close deals AND the better our deal flow – it’s all about the collective experience, capital and ability that creates success for the entire network.

Individuals score points, but teams win games.

-Zig Zeigler

Timberview invests with real estate teams whose compensation is proportional to the property performance. Therefore, these teams are extremely motivated to do everything in their power to make sure their investors have strong returns because the investors (that’s you) get paid first.

Many of the syndication investments are set up with a preferred return. For example, if you are investing into a syndication as a limited partner, and they have an 8% preferred return, the first 8% of the profits made from the property go to the limited partners. The private placement memorandum will define exactly how the money flows. In the above example, 8% per year will go to the limited partners before the general partners get any of the profit. Generally, after paying the preferred return to the limited partners, the profits will be split between the general partners who bring the deal and do all the work and the limited partners who put up the money. How the money is split will be detailed in the private placement memorandum document.

“When investing, always be certain that everyone’s interest is aligned with yours and then make sure they have skin in the game.”
-NYT best-selling author, David Osborn

“Real estate…is about the safest investment in the world.”
-Franklin D. Roosevelt

Unlike the stock market where you have no control over the growth of your investment, with multifamily we can force appreciation by upgrading the property/units and raising rents.  Timberview joins teams that do the work and are compensated with a portion of the profits. Increasing rent will increase net operating income resulting in a directly proportional increase in property value. 

Multifamily is not valued by comparables like single family homes but rather by a multiple of net operating income. It’s simple math; the net operating income divided by the cap rate gives you the property value. Therefore, we increase the value of the property by lowering expenses and increasing rent/income. For example, if we remodel and raise rents $300 on a 150-unit property the increased property value would be roughly $300 x 12 months x 150 units divided by the cap rate (5% for this example) = $10.8 million. 

Paper assets like stocks do not grow wealth like cash flowing real assets such as apartments. According to Robert Kiyosaki, stocks and other paper assets are where the poor and middle class invest whereas the wealthy invest in cash-flowing real estate. 

Another key value of real estate investments is their inherent stability. From 1973 to 2003 to real estate values fluctuated up and down by only 4%. This is in contrast to the stock market, which fluctuated 16.8%.

“Ninety percent of all millionaires become so through owning real estate.”

-Andrew Carnegie

Rental growth remains stable and strong throughout the US, and very strong in places like Texas and Florida where many people are moving for better weather, great job growth and no state income tax. Multifamily rents are at all-time highs. Vacancy rates are approaching historic lows. Rent projections remain stronger than pre-pandemic numbers. This is good news for the multifamily investor. As interest rates rise many would be homeowners will become renters further increasing the demand for multifamily.

A diversified stock portfolio is not diversified at all – it’s all the same asset class. If the stock market crashes, it’s all going down. To truly diversify one needs to invest in various asset classes, such as real estate. Not a REIT, but rather real real estate that has an address. Real real estate is a much more stable asset class. It is much less volatile than the stock market. It also allows for much better wealth growth over time because of control and significant tax advantages.

Multifamily kicks off significant depreciation to offset taxes. Dr. Cobb became serious about real estate investing in 2019 and has not paid significant taxes since, due to depreciation.

Through the use of cost segregation, multifamily can result in bonus depreciation of approximately 50-80% of your investment amount in the year of purchase. 2022 was the last year for 100% of the depreciation generated by real estate in the year you purchase. For 2023, 80% can be used in the 1st year. In 2024, it is scheduled to drop to 60%.

A 1031 exchange allows investors to defer paying capital gains taxes when selling an investment property by reinvesting the proceeds into a new property of equal or greater value. This deferral can continue through multiple exchanges, allowing for the potential growth of wealth without immediate tax consequences.

No, a 1031 exchange can only be used for “like-kind” properties, which generally means real estate for real estate. However, the properties don’t need to be identical—they just need to be used for investment or business purposes.

Yes, there are two critical deadlines: you must identify the replacement property (you can identify up to three) within 45 days of selling the original property, and the new property must be purchased within 180 days of the sale.

If you’re interested in using a 1031 exchange to defer taxes on the sale of investment properties, send an email to [email protected] to discuss your goals. We’ll connect you with the right people to guide you through the process and help you comply with the IRS requirements.