Acquisition Criteria

At Disrupt Equity, we focus on identifying B and C class multifamily assets with 90 units or more, in key markets including Texas, Atlanta, Jacksonville, and Memphis. Disrupt Equity will typically take a 100% ownership interest, but may also acquire assets through partnership or joint ventures.

Property Type: Multifamily
Target Markets: Texas, Georgia, Tennessee, and Florida
Sub-Markets: Houston, Dallas – Fort Worth, Austin, San Antonio, Atlanta, Jacksonville, Memphis
Property Size: 90 units or greater
Transaction Size: $4-50 million
Equity Contribution: $1,000,000 – $20,000,000
Property Class: B+ to C-
Vintage: 1960-2000
Debt: New Debt, Assumption or All Cash
Ownership Type: Outright, Partnership, Joint Venture

Investment Strategies

Value-Add:
Our core focus are value-add opportunities. These assets are typically well occupied at takeover but rent below market or have a clear value-add play, such as implementing utility bill-back. By implementing revenue-generators, curing deferred maintenance, adding and improving amenities, and taking steps to improve property appearance, we can usually continue to increase rents and generate substantial cash-flow for investors. A typical value-add play is $5,000-$9,000/unit in rehab budget.
Stabilized:
These assets are typically well maintained and have high occupancy at takeover. These assets typically provide strong cash-flow from day 1, and have an opportunity to increase value through moderate interior upgrades. The rehab budget is typically on $1,000-$3000/unit.
Distressed:
These assets tend to have lots of deferred maintenance and suffer from high vacancy. With a strong rehab budget, these asset can typically be turned around and brought back to stabilization in 12-24 months, afterwards providing significant cash-flow or value for investors. The typical rehab budget is $6,000 to $15,000+ per unit.

Investor FAQs

An accredited investor is an individual who meets specific requirements regarding net worth and income according to SEC regulations. These regulations ensure proper protection for all investors.

To be an accredited investor, you must satisfy at least one of the following:

1. Your annual income has been $200,000+, for the past two years and you have the expectation of reaching the same income level this year.
2. Your joint income with your spouse has been $300,000+ for the past two years and you have the expectation of reaching the same income level this year.
3. Your individual net worth (or joint net worth with your spouse) exceeds $1,000,000, excluding your primary residence.

Investor accreditation requirements will depend solely upon our offering, but in general you are not required to be an accredited investor to invest in our offerings.

To be a sophisticated investor, you must satisfy at least one of the following:

1. Your individual income has been between $100,000 and $199,999 within the past two years, and you have the expectation of reaching the same income level this year.
2. Your joint income with your spouse has been between $200,000 and $299,999 in the past two years, and you have the expectation of reaching the same income level this year.
3. Your individual net worth (or joint net worth with your spouse) is between $350,000 and $999,999, excluding your primary residence.

To be be notified on our investment opportunities you must be placed on our investor email list. If you are looking to be on our investor list, please complete the investment form here: https://www.disruptequity.com/invest

For each investment opportunity open to our investors, you will receive an email notification from us announcing the offering. In most cases we will host a webinar to provide you with more information regarding the investment offering.

The minimum investment is dependent upon the offering, and can vary for each offering. Typically, the minimum investment amount will be $25,000- $75,000 per offering. Investments will be accepted on a first come first serve basis.

As an investor you will receive distributions throughout the hold time of the asset along with a return on your investment upon sale. These returns will vary from project to project, so, please contact us at team@disruptequity.com for more specific information regarding total returns. To review the returns on our recently closed acquisitions please visit: https://www.disruptequity.com/recent-acquisitions/

This will vary depending on the project. The distribution schedule will be outlined within the investment offering. In general, we offer monthly distributions to our investors.

Upon investing with Disrupt Equity, you can expect to receive monthly investor reports that will update you on the performance of the project with financial data, and a summary discussing the execution of our business plan.

Yes, you can use your self-directed IRA or solo 401(k) to invest in our investment offerings.