WELCOME TO

PAYOUT CAPITAL

Our Company Values

PAYOUT CAPITAL

At PAYOUT CAPITAL, we’re passionate multifamily investment professionals committed to the dual purpose of creating safe, reliable communities for our residents and building generational wealth for our investment partners. By combining the right people with the right deal, we’re adding value through physical renovations and efficient management to construct a multifamily portfolio with consistent cash flow and strong downside protection.

 

Payout Capital is a Multifamily investment company that is focused on the acquisition of value-add B/C multifamily properties in growth areas throughout the southeast United State.

We strive to elevate the quality of life for the residendts of our communities and create value and force appreciation in our assets through valu add renovations and streamlined efficiencies in operations, providing above average returns for our investors.

THE SECRET SAUCE

Experienced

Experience gives us a competitive advantage that many do not posses.

Conservative approach

We refuse to force a square peg into a round hole. Learn our conservative approach and follow along.

Execution / Diligent

Navigating road blocks in order to do what we say.

Communication

Enabling systems in order to keep our entire community up to date

Mentorship

Describing how things work helps everyone make sound decisions.

Community

There is no “I” in this team. You go the distance by growing together.

Success using systems

Our strategy is simple and yet complex. The right people combined with the right deal. It seems simple on the surface but finding the right people and deals can be a complex and time intensive process. Neither choice to be rushed, we evaluate many aspects to choose the perfect fit.

Why Multi-family

Why do we invest in multifamily? Risk vs. Reward. To us it is the hands down best investment tool around. Multifamily offers us a variety of ways to rapidly grow our wealth together yet stable enough to ride the volatile waves of the economy. Throw in a sprinkle of tax savings to add the cherry on top.

SUBMARKET CRITERIA

Infill Location
Infill Location
Stable Tenant Base
Stable Tenant Base
Superior location
Superior location
Convenient Highway Access
Convenient Highway Access
Diverse Employment
Diverse Employment
Favorable School System
Favorable School System

PROPERTY CRITERIA

5-60MM valuation
5-60MM valuation
100k+ MSA markets
100k+ MSA markets
50-250 units
50-250 units
20% – 50% NOI upside
20% – 50% NOI upside
Growth markets
Growth markets
Vintage 1970s – early 2000s
Vintage 1970s – early 2000s
Value add opportunities
Value add opportunities

Growing together

At Payout Capital, we’re passionate multifamily investment professionals committed to the dual purpose of creating safe, reliable communities for our residents and building generational wealth for our investment partners. By combining the right people with the right deal, we’re adding value through physical renovations and efficient management to construct a multifamily portfolio with consistent cash flow and strong downside protection.

Payout Capital’s Roadmap

We put in the leg work in order to simplify the process for you.

Payout Capital

Walk with us toward your next investment

Our Communication Advantage

We strive to provide best in class communication to keep you informed regarding property performance and macroeconomic trends that may affect your investment.

Frequently Asked Questions

Below we have assembled some popular questions from people just like you. You know how people say “You don’t know what you don’t know”? These questions and answers may help you to better understand the investment possibilities.
We currently support personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations). Investing with your personal holding company is usually a wise idea for extra protection and tax planning. Consult with your CPA to discuss what options make the most sense for you.
As a member in the LLC that purchases the property, you will receive a K-1. A K-1 is a tax form used by LLCs to provide investors with detailed information on their share of a partnership’s taxable income. LLCs are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return. In general there are significant tax benefits of investing in a real estate syndication like ours because of accelerated depreciation that allows for “tax losses” passed through to the investor.
An accredited investor, in the context of a natural person, includes anyone who: earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, OR any entity in which all of the equity owners are accredited investors.
Yes, you can invest through your IRA. If you currently have a self-directed IRA, please check with your current custodian to ensure that they will allow you to place your investment with REM Capital. We also accept self-directed and solo 401(k) as well as any other retirement type structure. It’s a great way to achieve capital appreciation inside of a tax advantaged structure.
Yes, our particular structure being a 506(c) offering requires us to only accept accredited investors. Accreditation is simple and easy with our Docusign process. Typically your CPA or investment advisor can assist and it’s just a matter of confirming that you have $1MM of net worth (exclusive of personal residence) or meet income requirements of $200k/year (single) or $300k/year (married). If you are not an accredited investor please reach out to us and we’re happy to point you in the direction of other opportunities that may fit your needs.
Distributions are sent out via ACH each month. Distributions are usually lower in the beginning of the project (5-7% per year cash-on-cash in year 1 and 2) and higher towards the latter part of the value add (10-12% cash-on-cash in year 3+).
Investor funds are used for the total acquisition cost of the property. This includes but is not limited to the actual purchase price of the property, acquisition fees, legal and transaction costs, capital projects, and reserves. We set aside 6-12 months of expense reserves as part of our conservative underwriting process. We also typically raise the capital to cover our improvement projects so that we’re not taking unnecessary risk to complete the intended value-add. Capital preservation comes first. We want to maximize our return while minimizing our risk to capital.
Yes. Investors are encouraged to visit the property before investing and during the life of the project. We typically visit each site on a quarterly basis and will notify you via email ahead of time when those visits are taking place. We love to see our investors and show them around. It’s a part of our mentorship program and we believe investor education is a critical component of helping you become a better investor.
We form an LLC as a special purpose entity to hold title to the property we’re investing in. Then we create another LLC that wholly owns the SPE. This is where the Class A (investors) and Class B (management) members have their ownership.
A Limited Partnership is an older term that was used for many years to delineate between passive partners and management partners in an entity. These days we use a Limited Liability Company (LLC) to house all of our legal entities. LLCs have Members and Classes. The LP/GP delineation is still used today because of it’s ease of translation from the past. Today we are technically all Members and there are Class A members (investors) and Class B members (management). The General Partner (i.e. Class B member) is responsible for making all decisions and retains the liability for the LLC. The Limited Partners (i.e. Class A members) are passive investors but receive liability protection. In our deals, we are on both sides of the deal – as investors and as management. It’s important to “put your money where your mouth is”.
Investment windows are generally 5-10 years. This window provides enough time to improve and stabilize the property, benefit from market changes, and exit for a healthy return. This time frame is reviewed on an annual basis in relation to the property financials and the local/regional economic conditions. It’s important to stay on top of what happening in the market and while we prefer long-term buy and hold because of the higher overall returns, there may be times where we can get a 5-10 year return in less time. Selling the property early in these cases may make sense but it will depend on many factors such as replacement costs, opportunity cost, tax laws, etc.
Our typical investment minimum is $100,000 on each project. We try to keep the number of investors on each project to a reasonable number so that it doesn’t feel like crowd funding. Our goal is to give you the time and attention that we feel you should have to keep up with your investment and make it a personal experience. Our investor mentorship program includes site visits, monthly updates, and access to our leadership team for questions, feedback, etc. We also have a VIP Investor program for those who invest a cumulative amount of $1MM or more. We value long term relationships and want to say “thank you” to our dedicated investors by giving them up to an additional 20% on their return.
Investors receive profit distributions on a monthly basis. These are sent out via ACH by the end of the following month once all of the financials are finalized. Investors can track their progress on our investor portal.
Investors receive pass-through tax benefits, which means that all distributions flow to each limited partner. The Limited Partnership pays no taxes. Investors also benefit from the depreciation deduction for real estate, which reduces taxable income. Investors receive a Schedule K-1 by March 15th each year which includes a report of each investor’s share of profits, losses, deductions, and credits to include in their tax returns. Typically the first year includes a roughly 50-70% tax write-off due to accelerated depreciation. In general, investors will not have to pay taxes on distributions for the first 5-7 years due to these tax benefits and the structure of our deals.
Investing is simple. Prospective investors receive an Offering Memorandum which details the deal’s property type, market details, and projected returns. Investors complete the investment documents and contribute capital. Distributions are paid via ACH on a monthly basis. Investment updates are delivered to investors monthly (in the beginning as we get rolling) and eventually quarterly (once we achieved the completion of our value-add component).

Meet The Team

Our team is comprised of genuinely gifted minds

Greg Forster – Founder

Greg Forster is the founder of Payout Capital Greg Forster Greg Forster is the founder of Payout Capital and has been active in Real Estate investing full-time since 2004. Greg has actively owned, managed, and renovated well over 500 single and multifamily properties. Prior to that Greg was responsible for managing multiple restaurant locations from the ground up in the southeast United States with Applebees, Lone Star Steakhouse, Steak And Ale & Ruby Tuesday`s.

Garrison Gilbert – Senior Advisor

Honesty, integrity, and teamwork is what guides us through our day to day activities Garrison has been a full-time real estate investor since 2001 after completing college with two business majors and a minor in psychology. Since that time, he purchased over 1200 properties including fix/flips, land development deals, beach property acquisitions, single-family rental portfolios, section-8 rental portfolios, high-end estate developments, nonperforming real estate notes, and he was involved with a $50M real estate fund based out of NYC in 2008. Then in 2015, he made commercial real estate his full-time focus.Since he transitioned to full-time commercial real estate investing, Garrison has had the opportunity to speak at several large apartment building conferences where average attendance ranges from 600-1000 people. He is also a multifamily real estate coach for one of the largest names in the business while also having two real estate mastermind groups for apartment building owners
Additionally, Garrison is one of the founding members of MultifamilyMaster.com, which is a worldwide online platform that provides free educational content for buying apartment buildings. Due to his success in the commercial real estate space, he was nominated for Multifamily Real Estate Investor of the Year in 2018 by Think Realty Magazine, which is one of the largest magazine publications for real estate investors. As Director of Investor Relations, Garrison Gilbert is a wealth of knowledge when it comes to real estate, and he strives to help as many people as possible because in commercial real estate, your network is your net worth, and this is a team sport.

Rod Khleif – Senior Advisor

Rod Khleif is an entrepreneur, real estate investor, multiple business owner, author, mentor, and community philanthropist who is passionate about business, life, success, and giving back. As one of the country’s top real estate trainers, Rod has personally owned and managed over 2,000 properties.

Rod is Host of the Top-Ranked iTunes Real Estate Podcast which has been downloaded more than 9,000,000 times – “The Lifetime Cash Flow Through Real Estate Investing Podcast.” Rod is the author of “How to Create Lifetime Cash Flow Through Multifamily Properties” considered to be an essential “textbook” for aspiring multifamily investors.

As an accomplished entrepreneur, Rod has built several successful multi-million dollar businesses. As a community philanthropist, Rod founded and directs The Tiny Hands Foundation, which has benefited more than 75,000 community children and families in need. Rod has combined his passion for real estate investing and business development coaching with his personal philosophy of goal setting, envisioning, and manifesting success to become one of America’s top real estate investment and business development trainers.

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