Our Strategy

What are Real Estate Syndications?

Real estate syndications are essentially group investments. Rather than investing in and managing a rental property on your own, real estate syndications allow you to invest passively, alongside dozens, and sometimes hundreds, of other investors just like you. Together, we invest in a commercial asset, like an apartment community.

When you invest passively in a real estate syndication, you get to invest your money and let us do the work for you. We find and manage the deals on your behalf. You sit back and enjoy the time and financial freedom, all while knowing that your hard-earned money is working on your behalf.

We acquire assets across the country with a primary focus on the Southeast, Mid-Atlantic, and Texas, where Westworth has current assets and infrastructure.

Our Approach

Westworth Capital focuses on passive income and wealth preservation for investors through private real estate investments. We acquire assets across the country with a primary focus on the Southeast, Mid-Atlantic, and Texas, where Westworth has current assets and infrastructure.

COMPETITIVE ADVANTAGE

We have members of our team living in many markets that we invest in. We have developed close relationships with the property managers, commercial property brokers, and agents in those markets. We are able to identify and acquire quality pocket listings – and focus on properties that are not on the radar of institutional investors but too large for the average individual investor.

INVESTOR ALIGNMENT

The team at Westworth Capital invests alongside our investors in every single property. This is a core value of our investment philosophy. We stand behind each investment we offer to investors by being the first to contribute our own money.

Additionally, our structure is set up so that Westworth Capital shares in the success of the investment, only if investors are profitable. We firmly believe that if we cannot deliver competitive profits to investors, we have not earned a share in those profits.

COMPREHENSIVE INVESTMENT MANAGEMENT

Westworth Capital identifies, analyzes, and selects portfolio investments based on strict quantitative and qualitative criteria. This disciplined due-diligence process ensures a data-driven approach to our investing.

Multifamily Value-Add

Our approach to multifamily investing is to add value.

Investors generally struggle to find the right balance between stable cash flow and appreciation potential. Westworth Capital’s unique approach to investing in multifamily properties achieves both objectives.

We are able to acquire properties at or below market prices due to our comprehensive data analysis. We buy quality properties in locations with growth potential and strong employment bases. Most of the time the properties have been poorly managed and have higher than market vacancy rates or require capital improvements.

Once re-positioned, the properties generate stable cash flows for investors year after year. And, the properties typically achieve a significant increase in value due to Westworth Capital’s management and property improvements. Once stabilized, we sell the property at market price for a healthy gain.

SO WHY MULTIFAMILY?

There are many advantages to owning multi-family real estate. Below are just a few:

Everyone needs a place to live

Multifamily is a highly recession resistant investment as people always need a place to live. Home ownership rates continue to fall as interest rates increase and housing preferences change to favor renting.

Stable cash flow generation

Multiple units provide protection to cash flow. With multiple tenants paying rent, there is not a reliance on a single tenant.

Ability to force appreciation

Multifamily investments are bought for their income production. By increasing the income produced, the value of the asset can be significantly increased, resulting in large gains.

Criteria

At Westworth Capital, we believe in the KISS methodology (keep It Simple Stupid), and that the most complicated investing criteria are not necessarily the most successful. That is why we have set a well-defined investing criteria which we follow and ingrain in the company culture.

Project Types: Multifamily & Commercial

average real estate return on investment

We invest across the multi-family and commercial asset classes in resilient markets with a diverse set of employers throughout the U.S. Once acquired, these properties generate stable cash flows year after year and achieve healthy capital gains for our investors when we exit.

Asset Size: Up to 350 units, under $35MM

Because bigger isn’t always better. Studies show that the largest deals lag over the long-term, while medium-sized acquisitions boast stronger shareholder returns. Westworth Capital invests in assets that will benefit most from the integration of a strong management team implementing aggressive value creation tactics to enhance operating income.

Location & Demographics: Growth Factor

Westworth Capital evaluates U.S. markets based on local demand generators. We use a data-driven approach to analyzing economic strength, market stability, municipal objectives, population and job growth, and rental supply & demand trends.

Real estate investments across the Core, Core Plus, Value-Add, and Opportunistic asset classes

Below is a glimpse into the different types of asset classes and our investment sweet spot which are the A, B, and C asset classes. The value-add classes allow for adjusted risk and greater returns for our investors.

CORE

Low risk/low return buy and hold strategy for predictable cash flows
Stable, leased properties within strong rental markets
Typically Class A buildings with high quality tenants and high rents

CORE PLUS

Moderate risk/moderate return strategy
Invest in Core properties that require some enhancement or value-add
Typically Class B buildings with a strong tenant base

VALUE-ADD

Medium risk/medium return strategy
Acquire -> improve -> sell approach through physical or operational enhancements
Typically Class B/C buildings with some need for renovation

OPPORTUNISTIC

Typically class D. High risk/potential high return strategy
Development opportunities or properties that require significant improvement
Include vacant land developments, tear-downs, and construction projects

In a nutshell

What we invest in

Investment Size

Typical investments are $4M-35M in value, targeting structures and situations difficult for institutional investors to execute due to economies of scale and their need to deploy larger capital

Product Type

Multifamily and other housing investments. We will evaluate other asset classes on a case-by-case basis. We find our sweet spot to be Class A, B, or C+ (value-add) multifamily assets

Location Strategy

Submarkets with strong demand drivers such as employment and transportation hubs, that are also aided by favorable macro drivers such as employment and income growth

Stability

Our target properties typically generate predictable cash flow upon stabilization, while possessing significant upside over the investment period

Your Questions Answered

FAQ

What is Westworth Capital?

Westworth Capital is a private real estate investment firm that helps clients achieve superior risk-adjusted returns by acquiring apartment complexes nationwide. We raise capital from sophisticated investors seeking a combination of solid cash flow and equity growth. We buy assets within our well-defined criteria, manage them effectively and efficiently – and distribute cash flow to investors.

Who is eligible to invest with Westworth Capital?

Depending on the offering type, our offerings are open to both accredit investors and those with whom we have a substantive, pre-existing relationship. Send us a message to learn more.

What is SEC Reg D 506(c)?

Rule 506(c) permits us to broadly solicit and generally advertise our offering, provided that: all purchasers in the offering are accredited investors. We take reasonable steps to verify investors’ accredited status and certain other conditions in Regulation D are satisfied.

What is SEC Reg D 506(b)?

With Rule 506(b), we can offer opportunities without general solicitation, with the option to include a limited number (up to 35) of non-accredited investors. However, we must have a pre-existing relationship with you as an investor.

Who is an accredited investor?

An accredited investor is a person who has at least $200,000 in personal income, or $300,000 for combined incomes, over the past two years, with the expectation of the same or higher income in the current year. People with a net worth of more than $1 million singly, or with their spouse, excluding the value of their home, also qualify.

What am I investing in?

We offer our investors the opportunity to invest in specified assets and diversified funds based on your goal as an investor. Our specified asset offerings raise capital to acquire one apartment complex. Our diversified fund offerings raise funds to buy multiple assets such as apartment complexes, commercial/office buildings, car washes, and laundry services.

Can I invest with my self-directed IRA or another retirement account?

Yes! We can process investments through a variety of self-directed retirement accounts.

How will investor reporting work?

Investors will receive access to their investor portal where they can review their investment details and relevant documents at any time. Depending on the offering, investors can expect to see monthly or quarterly updates.

Who manages the properties?

Westworth Capital handles all of the decisions related to acquiring, managing, and selling the properties. Our role is to deploy our expertise to improve investor returns. We hire professional property management firms to handle the day-to-day activities and work closely with them to ensure that investor returns are maximized. Investors do not participate in the management activities.

What is the minimum investment?

Currently, investment minimums range from $50,000 to $250,000 depending on the offering.

Does Westworth Capital accept proceeds from a 1031 exchange?

Not directly. Using 1031 exchange funds to invest in multifamily syndication is done through a structure called “tenants in common” (TIC). With TIC, you are partnering with the syndication in a joint venture. Without the TIC structure, your equity shares of the multifamily syndication are considered securities, not real estate, by the IRS. Therefore, you cannot use a 1031 exchange to buy directly from syndication because a 1031 exchange requires a like-kind swap, and you cannot exchange real property for securities with a 1031 exchange. If you are interested in a joint venture with us, please send us a message below.

What tax documents should I expect to receive?

You will receive a K-1 at the end of each year for each of your investments. You will be able to access these documents from our secure investor portal.

What are the tax implications of investing in a real estate syndication?

The government wants you to provide housing for the people. Therefore, your passive real estate investments are taxed more favorably than your W2 or business income. We have identified five great ways you can benefit by investing passively in real estate. Click here to learn more.

Does any depreciation or losses get passed through to the investor?

Yes! We typically perform cost segregation studies on all of our assets, allowing investors to benefit from bonus and accelerated deprecation.

What is the structure?

A Limited Partnership is formed, which holds title to the property. Westworth Capital serves as the General Partner, while investors are Limited Partners. The Limited Partnership structure provides investors with both liability protection as well as pass-through tax benefits.

What is a Limited Partnership?

A Limited Partnership is a legal entity which consists of a General Partner and one or more Limited Partners. The General Partner is responsible for making all decisions, but retains the liability for the partnership. The Limited Partners are passive investors but receive liability protection.

Wish to invest with us?

Send us a message and let’s get to know you

No Offer of Securities – Disclosure of interests. Under no circumstances should any material at this site be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the Confidential Private Offering Memorandum relating to the particular investment. Access to information about the investments are limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1993, as amended or those investors who generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments.