FAQ
Sponsors (General Partners (GPs)), have collectively managed over 6000+ units under sponsorship till date. Orion founders have completed several full cycle real estate transactions in CRE space delivering results above proforma. GPs have experience and participation in multifamily CRE transactions over $1B and with future development opportunities in the north of $1B to build residential and mixed-use projects in Texas.
Orion RE Capital is growing rapidly and increasing its footprint by acquiring institutional-grade assets while continuing to deliver superior results. We have built strong relationships and created an ecosystem of brokers, lenders, equity partners, property managers, attorneys, etc. In 2021, as part of the strategic plan, we expanded our offerings to allow our investors in multifamily, land, new construction, and other type of real estate opportunities. Orion executives and the founders Mr. Prasanna Kumar, Mr. Suresh Batchu, and Mr. Shivesh Gowda will continue to manage all the operations, acquisitions and will continue to be the principals involved in decision making and day-to-day activities.
20+ years of experience living in Texas, gives us competitive advantages in many areas including better understanding of the sub-market, local connections of brokers, access to better deals, better insights for underwriting etc.
The asset class “Multifamily” has proven time and again the safest investment choice due to its strong fundamentals that people need a place to live. During the past recessions and the recent pandemic, all our multifamily assets did exceptionally well, and the GPs were able to deliver superior returns between 25% to 45% AAR and consistently made quarterly distributions. With our conservative underwriting and stringent acquisition criteria we choose assets in the markets that are going to assure preserving your capital and projected to generate better results with the lowest risk. Every investment comes at risk, we always recommend investors make their own decision while investing.
Yes, at their discretion they typically invest between 3% to 5%, or more depending on the circumstance. Remember that the GPs take responsibility of the loan guarantees.
Fund and Portfolio words are interchangeable and has the same meaning. The new Fund/portfolio “Orion Land Portfolio 2022” will be similar to our previous funds. We plan to acquire between 3-6 properties under this fund. Instead of acquiring properties individually, acquiring the properties under the fund will continue to give us the benefit of diversification and reduced risk. The fund offers significant risk-adjusted benefits where your investment is spread across multiple properties rather than just one property. The fund allows sponsors to customize the portfolio and manage the properties more effectively. All properties are acquired with the goal to exit between 3 to 5 years. The decision to exit at a property level or fund level will be made keeping in mind the best outcome for our investors. The amount invested by an investor will not be specific to a particular property. The investment will be property agnostic and will enjoy the returns from all properties acquired under the fund. If one asset is underperforming, then the other assets will make up for it and therefore continue to ensure a higher probability of achieving projected investor returns.
The Fund is structured as a Limited Liability Company (LLC). Individuals will make their investment into the Fund LLC (Portfolio) which will purchase properties via subsidiary entities. In this way, properties are owned by the Fund and cash flow passes from the property to the Fund, which then makes distributions to investors based on the number of units they own.
Each Fund is created with a specific objective in mind. The overall goal is to deliver superior returns in a tax efficient manner. The Fund strategy is to invest in Core, Core Plus & Value add multifamily apartments, land, etc. We are also looking at land development, senior homes and BTR (built to rent) types of assets as well.
Please refer to Fund specific pages to learn more about targeted returns.
Please refer to Fund specific pages to learn more about the duration.
No. This is a closed end Fund.
Each investor will have a date from which their returns will accrue. Whenever any property is sold all investors in the Fund do get the prorated distribution from the sale proceeds.
Every investment comes with some risk. Historically real estate investments have performed well and by far the Multifamily investment is very safe and recession proof. We are very experienced operators, our primary objective is to protect the investor equity, we do this via thorough due diligence and data driven approach before acquiring.
A trusted team and one of the best in Texas for investing in commercial real estate, superior risk adjusted strategy, bonus depreciation, built-in diversification, potential tax benefits and return of capital along with superior returns are some of the benefits to invest in Orion Realty Funds.
Limited Partner (LP)
We use professional third-party companies who are experts in managing this type of assets in an effective manner.
You can be an accredited or sophisticated investor. To be an accredited investor, a person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or a higher income in the current year. An individual must have earned income above the thresholds either alone or with a spouse over the last two years. A person is also considered an accredited investor if they have a net worth exceeding $1 million, either individually or jointly with their spouse. Net worth included investment homes, furnishings, jewellery, automobiles etc., but excludes the value (and any related indebtedness) of a primary residence. A sophisticated investor is a classification of investor indicating someone who has
enough capital, experience and net worth to engage in more advanced types of investment opportunities. We can only accommodate a limited number of sophisticated investors in this Fund. Consult your CPA for any additional clarifications on Accreditation.
Yes, Investors are responsible for identifying potential buyers and work with potential buyers to determine terms, conditions & cost associated. The Fund manager must approve the transfer and once approved will facilitate the process. There will be a small attorney fees for this transfer.
Real estate investments are illiquid, meaning it is not like a stock where we can enter and exit whenever we want. The typical hold period is between 3 to 5 years.
We need to have patience and believe in the fundamentals; real estate is the best investment choice during all market cycles, so patience is the key.
Your capital is invested in the real estate properties that the fund owns, and we cannot exit the properties in the middle of implementing a business plan, and doing so will be a loss for everyone. When we are done with creating value and the market turns around, we will exit.
Therefore, it is not possible to exit individual investments at different intervals as it is going to impact everyone. Most of our investors understand the situation and they believe in the long-term prospects of this investment. Believe us, when the COVID pandemic happened in 2021, we went through an even higher
panic mode however we stuck to our fundamentals and held on to the assets, and finally came out very successful.
Having said that, if you can identify another potential investor who is willing to take over your position, then we will be more than happy to transfer your shares to them and exit you out. Please keep in mind that, If you have used bonus depreciation in the previous years those would be reclaimed, and it may result in some tax consequences which you may want to check with your CPA as to how that works. Our number one priority continues to protect investors’ capital.
Any LLC or Corp. can invest directly into the Fund and the entity needs to stay active throughout the life of the Fund.
Please visit https://investors.orion-re.comto register and contact us. A detailed “How To” step by step PDF guide will be made available to allow individual investors to create and navigate through their account on the investment portal.
Yes, you can invest as an individual, jointly with your spouse or other related person, through several different types of retirement accounts, or through an LLC, Corporation, Trust, and many other types of entities.
You will fund 100% of your commitment all at once and will be deployed on our acquisitions and improvements. Investors can access updated account information 24/7 by logging into the investor portal. Investors also receive detailed asset information quarterly.
Distributions will come from cash flow generated by the Fund properties, refinance and capital appreciation when exiting these properties.
An Investor’s account begins to accrue returns from the date specified by us. Since each Fund is structured differently, our Investor Relationship team will keep you appraised on these dates after you have funded your investment.
Yes, we can help you do that.
Please consult your CPA/TAX Advisor for any tax-related questions.
We are currently working with a 1031 exchange provider to explore the possibility of allowing 1031 funds to be invested. Given that the 1031 exchange is a complicated and time-consuming process, and has exorbitant service fees, we are only considering this on a selective basis. Please write to support@orionrecapital.com for additional details.
The Fund will issue federal K1s to all investors on an annual basis.
We make every effort to provide K1s to investors in early March. Investors using entities (LLCs etc.) please plan to file an extension just in case.
Please consult your CPA/TAX Advisor for any tax related questions
Everyone’s tax situation is different. You should consult your CPA to see If you can benefit from this.
If the offering is via 506(b), we accept accredited and sophisticated investors self-certifying and for 506(c) we accept only accredited investors whose accreditation is verified by certified agencies.
SEC rule 506-B type of security is being offered. Sellers of unregistered securities are only allowed to sell to accredited investors, who are deemed financially sophisticated enough to bear the risks & no more than 35 non-accredited investors.
We get agency/bank loans. Equity raise is for the down payment, working capital and other improvements only. All our investments are financed through agency/bank loans.
No
Please send an email to “support@orionrecapital.com” or call us at 1-833-373-6262 for further questions and information.
Our goal is to make distribution during 3rd week of the April, July, October and January for the preceding quarter that ends in March, June, September and December respectively, only if there is positive cashflow left to be distributed.
Currently, the Fund does not support reinvestment on a quarterly basis. However, the plan is to support this feature in the future Funds.
You are not liable for the debt or any other risks. Your liability is limited to the capital you are investing in the Orion Realty Funds
The purchase price is what the seller sold the property for. However, it does not include all the closing costs, fees, expenses, working capital, and the CAPEX amount. Therefore, you will find a difference in purchase price vs purchase cost. Upon closing, we will disclose the final numbers in the settlement statement which will show all the details.
Total Return = Sale Price – Sales Expenses – Outstanding Loan – 100% Equity return to investors – GP Promote + Previous Distributions + Escrow + Remaining Working Capital. From sales proceeds, any expenses related to the sales (Broker fee, etc.) will be subtracted. Then the outstanding loan will be paid off. Then 100% of the original investment to the investors will be paid. From the remaining amount, LP profits are calculated after applying the GP promote %. Please refer to the PPM for details
No, there is no CAP on how much LPs can make
Please refer to fund specific pages to learn more about the split
Targeted returns that are mentioned in Fund specific pages are different from depreciation.
Yes, most definitely. You will have multiple opportunities to contribute to this Fund.
