Farmers Capital Group is a commercial real estate, private equity company.
No. Farmers Capital Group is as structured as a Limited Liability Company.
A Limited Liability Company (LLC) is a common business structure where the owners are called members or managers.
The process of bringing investors together to pool their financial resources to acquire one or more real estate assets.
Opportunities are reserved for accredited investors who individually earn more than $200,000/YR ($300,000, joint) for each of the last two years and expect to reasonably maintain the same level of income or have a net worth exceeding $1 million, either individually or jointly with his or her spouse. More information can be found here on the SEC website.
No, we are inclusive of all investors who share our core values.
We primarily invest in Self-Storage, Muti-family Apartments, and Mobile Home Parks as equity owners.
A Real Estate Investment is a venture where resources are pooled to purchase a business based on real property, execute the business plan, and sell the asset (or refinance).
Yes, all investments have some level of risk. Investing with Farmers Capital Group does not come without risks. All investments have risks. Make sure to read the Operating Agreements (O.M.) and other risk disclosures before committing capital to a deal.
No, international investors are allowed into our deals.
Business Structure and Partners
Farmers Capital Group uses a set of criteria pertaining to financial returns, qualifying qualities of the operator, and economic factors in the geographical market.
Farmers Capital Group vets each opportunity and passes only the qualifying deals along to our investors. Each investor must decide for themselves if the deal is suitable for them.
No. However, FCG is implementing a Board of Advisors.
Investments are typically composed of two types of partners: Genera Partners (GP)l and Limited Partners (LP).
Most investments follow the same structure as mentioned above.
A limited partner (LP) is an investor who exchanges capital in exchange for an expected return, experience, deal availability, and limited liability.
A General Partner (GP), also known as the operator or sponsor, is responsible for executing the business plan and life cycle of the asset.
FCG is required by the Securities Exchange Commission (SEC) to file the required paperwork for each deal.
The SEC is a U.S. government agency created by Congress to regulate securities and protect investors.
A Fiduciary is a person legally obligated to put a client’s investment decisions before their own. They typically offer complex indexes made up of traditional investment vehicles and are compensated annually based on the total value of the portfolio.
The owner of FCG invests alongside the limited partners and is compensated only when their preferred returns are met.
A turnkey investment is a fully renovated property an investor can buy and immediately rent out. Once purchased, the investor becomes responsible for asset management and is wholly liable. Turnkey investments typically yield lower returns because the investor is purchasing the asset with little to no appreciation opportunity.
We invest alongside our investors to directly purchase real estate and are compensated based on business plan execution. We don’t offer opportunities to our investors that we wouldn’t invest in ourselves.
The renovation process varies by asset class and geography. Investors can find the full process detailed in the marketing material.
The General partners
The General partners
Yes, limited partners will receive regular business plan updates via email or through the online portal.
Limited Partners will receive regular updates via email or through the online portal during the asset life cycle.
The percentage varies by business plan and asset class. Capital Expenditure reserves will be listed as needed.
Investments generally last anywhere from 2 to 10 years
Capital, Distributions, Taxes, & Fees
It is common for General Partners to invest their own capital into deals, although not required. They are financially incentivized to execute the business plan and hold the majority of liability.
If an opportunity meets our investment criteria, we will create an LLC and offer our investors shares of the company as limited partners.
The funds received from operations (cash flow) and the sale or refinance of a property.
Yes, limited partners are taxed on distributions. Limited Partners are equity owners and therefore able to take advantage of paper losses due to depreciation expense (accelerated through legislation and cost segregation studies).
Not at this time.
Yes, Self-directed Investment Retirement Accounts (IRAs) and Solo 401Ks can be used to invest in our deals.
A Real Estate Investment Trust
A) Investing with FCG means you know the property, business plan, and operating sponsors of a specific deal. With a REIT, shareholders do not have visibility to these details.
B) Income generated from a REIT is classified as Ordinary Dividend Income and taxed accordingly (~10 to 37%). However, the income and depreciation generated from FCG investments pass through to the investor which can partially offset any other income (W2 or farm operations).
A legal mechanism that allows investors to place unrealized capital gains into a like-kind investment in a tax-free manner.
Generally speaking, no. If you have a 1031 event, please reach out to discuss available options.
Fees vary with each deal. However, a typical fee structure is a 2.0% syndication fee and a 0.5% operational fee at the initial fund level. These fees enable us to provide a first-class investor experience over the long term. The profits are split +50/50 in favor of the passive investor after preferred returns are met.
Our fee structure and profit split incentivize us based on performance which is different than a typical Financial Advisor who charges 1-2% per year on the total Assets Under Management (no matter how well the fund performs).