Vestus Capital helps accredited investors put money into professionally managed real estate and other private investments without becoming landlords. We vet deals and sponsors, pass on most of what we see, and bring investors into a diversified mix of opportunities, with a current focus on medical and dental office real estate.

How do I get started?

Start with a conversation. Schedule an intro call and we’ll talk about your goals and whether our investments fit them. If you’d rather learn first, browse the blog, educational videos, and the free Engineer’s Investing Toolkit.

Can I invest if I'm new to real estate?

Yes, as long as you meet the accreditation requirements for the offering. Many of our investors are engineers, tech professionals, and physicians who had never owned a rental property. Our blog, videos, and The Engineer’s Guide to Real Estate Wealth are good places to start.

What kinds of investments do you offer?

Our current focus is medical and dental office real estate leased on long-term triple net leases. We’ve also invested in multifamily apartments, build-to-rent communities, and early-stage companies, and we look at other asset classes selectively.

Accreditation

What is an accredited investor?

The SEC generally considers you accredited if you earned more than $200,000 in each of the last two years ($300,000 with a spouse or spousal equivalent) and expect the same this year, or if your net worth is over $1 million, not counting your primary home. Holding a Series 7, 65, or 82 license also qualifies. More detail: What It Means to Be an Accredited Investor.

What is a sophisticated investor?

Someone with enough financial and business knowledge and experience to judge the merits and risks of an investment. Some private offerings allow a limited number of sophisticated investors who aren’t accredited.

Can I invest if I'm not accredited?

Sometimes. Certain offerings, known as Rule 506(b) offerings, allow a limited number of non-accredited sophisticated investors who have a prior relationship with the sponsor. Start with an intro call so we can tell you when an opportunity like that opens.

How the investments work

What is a real estate syndication?

A group of investors pools money to buy property that a professional sponsor manages. Investors are limited partners. They put in capital and receive a share of the cash flow and profits, but they don’t manage the property. Intro to Real Estate Syndications covers the basics.

How are the deals structured?

Investors typically become limited partners or members in an LLC that owns the property or portfolio. Cash flow, depreciation, and profits pass through to you, and gains on sale are generally taxed at long-term capital gains rates.

What's the difference between a fund and a single-deal syndication?

A single-deal syndication buys one property. A fund buys many, which spreads risk across more buildings and tenants but means you know less about each one up front. See Fund vs. Single-Deal Syndication.

How is a syndication different from a REIT?

A REIT is a company whose shares you can buy and sell, often on the stock market. A syndication is direct ownership of property through an LLC. Syndications usually require higher minimums (often $50,000 to $100,000) and longer holds, but they pass depreciation benefits through to you. See Syndications vs. REITs.

What is a preferred return?

A preferred return means investors are paid first, up to a set annual rate such as 8%, before the sponsor shares in profits. It’s a priority, not a guarantee. Preferred Return and Waterfalls Explained walks through the math.

What returns should I expect?

Returns vary by deal and are never guaranteed. They typically come from ongoing cash distributions plus a share of profits when a property is sold or refinanced. Each offering’s documents lay out its projected returns and its risks.

When will I get my first distribution?

It depends on the investment. Many syndications pay quarterly, starting after the first full quarter the property is owned. Funds may pay monthly or quarterly, and some make distributions based on redemption requests. Timing depends on the asset type and the strategy, and each offering’s documents spell it out.

How long is my money tied up?

Plan on several years. Most real estate syndications hold properties for 3 to 7 years, and your investment is generally illiquid until the property is sold or refinanced. Only invest money you won’t need during that time.

What fees do sponsors charge?

Common fees include an acquisition fee when a property is bought, an annual asset management fee, and sometimes fees at refinance or sale. Every fee is disclosed in the offering documents. Look for a structure where the sponsor makes most of its money when investors do.

What documents will I sign?

Usually a subscription agreement, along with the operating agreement for the LLC. You’ll also receive a private placement memorandum (PPM) describing the deal, the terms, and the risks. Read them carefully, and have your own advisor review them if needed.

Medical office real estate

Why medical office real estate?

Medical and dental practices provide care people need, sign long leases, and spend heavily to build out their space, so they rarely move. That tends to produce steady rent. Learn more in Medical Office Real Estate Investing: A Plain-English Guide.

What is a triple net (NNN) lease?

In a triple net lease, the tenant pays rent plus the property’s taxes, insurance, and maintenance. The owner’s income is more predictable because rising operating costs fall mostly on the tenant. See What Is a Triple Net Lease?

Is medical office real estate recession-proof?

No investment is recession-proof, and dental and medical visits do dip in downturns. But when rent is a small share of a practice’s revenue and the lease runs for years, rent payments have historically held up well. See How Medical Office Real Estate Holds Up in a Recession.

What happens if a tenant leaves?

The building earns no rent from that space until a new tenant moves in, and the owner covers its costs in the meantime. That’s why the operating teams we partner with look for strong tenants, corporate guarantees, long lease terms, and diversification across many buildings, so one vacancy doesn’t sink the portfolio.

Due diligence

How do you vet deals and sponsors?

We review track records, debt terms, fees, projections, financial statements, and legal documents, and we pass on more than 100 deals a year. Our process is in How to Vet a Real Estate Sponsor, and our 101-point checklist is in the free Toolkit.

What are the main risks?

Private real estate carries real risk, including loss of capital, illiquidity, tenant vacancy, rising interest rates, falling property values, and sponsor execution. Each offering’s PPM lists its specific risks. Never invest money you can’t afford to have tied up or to lose.

Taxes and retirement accounts

I’m not a CPA, so please talk to yours before acting on any of this. The tax code also changes often, so take these answers as a step in the right direction, not the final word.

Are there tax benefits?

Often. Real estate investors can receive depreciation, which can offset income from the investment and sometimes other passive income. The benefit depends on your personal tax situation, so talk with your CPA. More: Tax-Saving Strategies for Commercial Real Estate Investors.

What is a K-1, and when will I get it?

A Schedule K-1 reports your share of the investment’s income, losses, and depreciation for your tax return. K-1s for real estate partnerships often arrive in March or April, and sometimes later. Many investors file a tax extension as a routine step.

Can I invest with my retirement account?

Yes. You can invest through a self-directed IRA with an independent custodian, or through a self-directed Solo 401(k) if you have self-employment income. Each has different rules and tax considerations. See Investing in Real Estate Syndications With a Solo 401(k) and Navigating UBIT With Self-Directed IRAs.