Frequently Asked Questions
What is Parallel's investment strategy?
We aim to find under-appreciated multifamily properties, obtain non-recourse financing, improve operating performance, generate cash flow (aka: “mailbox money”) for our investors, and earn appreciation over a holding period.
What is the typical investment structure?
We typically create single asset LLCs with Parallel acting as the asset manager. Investors receive distribution payments via check. While the distribution amount may fluctuate depending on the asset’s performance, adjustments are made on a quarterly basis, or as necessary.
What is the minimum required to invest?
We require a $50,000 minimum. This amount is subject to change based on asset size and specific deal requirements.
What criteria do I need to meet as a investor?
– Investor is comfortable with a $50,000 minimum investment.
– Investor has access to a CPA and attorney to advise on investments of this nature.
What is a K-1?
A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
Will I receive a K-1 for my Parallel investments?
Depending on which investments you own in your portfolio, you may receive a Schedule K-1, K-1 information, or substitute K-1 (hereafter collectively referred to as K-1), a Form 1099-DIV or both. For more information, please see the relevant Parallel Offering Circulars when they become available.
When will K-1s be available to investors?
Our goal is to finalize all K-1s by March 15th, however, some funds may rely on outside reporting, or require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns.
How does a K-1 differ from a Form 1099-DIV?
Generally, investors that receive a Form 1099-DIV recognize dividend income equal to cash distributions received. Ordinary dividends are typically treated as ordinary income for tax purposes. When an investor receives a K-1, he or she will recognize their portion of the taxable income from the partnership but typically will not pay tax on their cash distributions. The taxable income allocated to each investor may include ordinary income, dividend income, interest income, rental real estate income, or otherwise. This income retains the same character as it had in the partnership, and should be reported on each investor’s federal tax return. Please consult your tax advisor for additional information.