FAQs

Hartman-Virzi Capital was founded in 2022 to give qualified investors a strategic, transparent approach to real estate investing

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Frequently Asked Questions

 

 

 

What is Hartman-Virzi Capital?

Hartman-Virzi Capital LLC is a 506(b) real estate investing company based in Rocky River, Ohio. Through detailed analysis of on and off-market investment opportunities, fund managers will identify and pursue cash-flowing, value-add properties that meet specific criteria. We look forward to sharing our strategy and joining forces with fund members!

What is an accredited investor?

Despite being a 506(b) offering (typically open to both accredited and non-accredited investors), Hartman-Virzi Capital Fund 1 has been reserved only for accredited investors. To be an accredited investor, a person must have an annual income exceeding $200,000 (or $300,000 for joint income) for the last two years. They should have an expectation of earning the same or a higher income in the current year. A person is also considered an accredited investor if their net worth exceeds $1 million, either individually or jointly with their spouse.

What will we be investing in?

Hartman-Virzi Capital Fund 1 will be targeting B&C class apartment properties in the Cleveland, Ohio market. Apartment buildings allow for cash flow at the onset of the investment, hedges against vacancy, tax benefits, and resistance during recessionary periods.

How do you source your deals?

We will target cash-flowing, but under-performing properties that possess a value-add opportunity. As Realtors in the Cleveland-area, the fund managers will scan the Northeast Ohio Multiple Listing service for opportunities, while also hunting for off-market deals and leveraging our connections with property managers, real estate agents, lenders and other area investors.

What rate of return will be targeted and how can investors expect returns to be distributed?

A minimum 8% average annual rate of return will be targeted. Hartman-Virzi Capital Fund 1 will be categorized as a priority return for investors, meaning the fund managers do not split returns with members until the members have recouped their initial investment on the project. Once investors have received back their initial investment, members will split returns with managers 70/30. Once an investor IRR of 15% is met, profits in excess of that 15% are split 50/50 between members and managers. Earnings will be distributed quarterly to members.

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’ll receive these documents securely through our accounting partners at SKM.

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Disclaimer

*All offers and sales of any securities will be made only to Accredited Investors, which for natural persons, are investors who meet certain minimum annual income or net worth thresholds or hold certain SEC approved certifications. Any securities that are offered, are offered in reliance on certain exemptions from the registration requirements of the Securities Act of 1933 (primarily Rule 506B of Regulation D) and are not required to comply with specific disclosure requirements that apply to registrations under the Act.

The SEC has not passed upon the merits of, or given its approval to any securities offered by Hartman-Virzi Capital, the terms of the offering, or the accuracy of completeness of any offering materials. Any securities that are offered by Hartman-Virzi Capital are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell any securities offered by Hartman-Virzi Capital.

Investing in securities involves risk, and investors should be able to bear the loss of their investment. Any securities offered by Hartman-Virzi Capital are not subject to the protections of the Investment Company Act.

Any performance data shared by Hartman-Virzi Capital represents past performance and past performance does not guarantee future results. Neither Hartman-Virzi Capital nor any of its funds are required by law to follow any standard methodology when calculating and representing performance data and the performance of any such funds may not be directly comparable to the performance of other private or registered funds.