Faqs
Introduction
At Mortar Group, we empower investors with clear, actionable insights into real estate syndication. Whether you’re new to investing or a seasoned professional, our FAQs cover how we deliver design-driven, high-yield real estate opportunities in New York City and beyond. Updated regularly to reflect our latest strategies and investor feedback, these answers help you make informed decisions with confidence.
About Mortar Group
What is Mortar Group?
Mortar Group is a New York City-based, vertically integrated real estate firm specializing in architecture, development, and asset management. Since 2001, we’ve worked on over 40 projects, delivering high-yield, design-driven real estate syndication investments for accredited investors in Brooklyn, Queens, and beyond.
Where does Mortar Group invest?
We target high-growth neighborhoods in Brooklyn, Queens, and Upper Manhattan, with selective investments in urban markets showing strong economic fundamentals and design potential, ideal for real estate syndication opportunities.
What types of properties does Mortar Group develop?
We specialize in multifamily residential, mixed-use, and boutique commercial properties. Our focus on innovative design and sustainable development ensures high-demand assets in NYC’s competitive real estate market.
Investment Basics
Who can invest with Mortar Group?
Our real estate syndication offerings are open to accredited investors—individuals with a net worth over $1 million (excluding primary residence) or annual income exceeding $200,000 ($300,000 joint).
What is the minimum investment for Mortar Group projects?
Most projects typically require a minimum investment of $25,000–$50,000, making real estate syndication accessible to both new and experienced investors.
How do investors participate in Mortar Group syndications?
Investors join as limited partners (LPs) in a special-purpose entity that owns the project. Mortar Group acts as the sponsor, overseeing design, construction, and asset management to target strong returns.
What is the typical hold period for Mortar Group investments?
Development projects typically span 2–4 years, while stabilized, income-producing assets may be held for longer, depending on market conditions and investment strategy.
How do I start investing with Mortar Group?
Join our investor list or schedule a consultation via our Contact Page. After verifying accreditation, we share exclusive real estate syndication opportunities before public release.
Why invest in real estate syndication with Mortar Group?
Real estate syndication offers diversification, passive income, and professional management. Mortar Group’s fee-free structure, and NYC market expertise look to deliver superior returns compared to traditional investments.
Returns, Fees, and Alignment
How are investor returns structured in Mortar Group projects?
Returns vary by project but typically include a preferred annual return, followed by a profit split favoring investors after the preferred return is met, ensuring competitive real estate syndication returns.
Does Mortar Group charge asset management fees?
No. Unlike traditional private equity funds, we do not charge annual asset management fees, maximizing returns for real estate syndication investors.
When do investors receive distributions?
Distributions are paid upon project stabilization, refinancing, or sale. Timing depends on whether the project is development-focused (shorter-term) or income-producing (longer-term).
Does Mortar Group co-invest in its projects?
Yes. We co-invest in deals, aligning our financial incentives with investors to ensure shared success in our real estate syndication projects.
Taxes and Retirement Accounts
Can I invest in Mortar Group projects through a Self-Directed IRA (SDIRA)?
Yes. We partner with many custodians like Equity Trust or others to facilitate seamless, compliant SDIRA investments in our real estate syndications.
What tax benefits come with Mortar Group’s real estate syndications?
Investors may benefit from depreciation deductions, 1031 exchanges, depending on the project structure.
What tax documentation do investors receive?
Investors receive an annual Schedule K-1 detailing income, expenses, and depreciation for tax reporting purposes.
Risk, Oversight, and Due Diligence
What are the risks of real estate syndication with Mortar Group?
We target high returns in real estate, and with those high return projections come higher risks – and investors can potentially lose capital. Key risks include market fluctuations, construction delays, and absorption timing. We mitigate these through conservative underwriting, in-house expertise, and experience across multiple NYC market cycles. See PPM for all the details and potential risks.
How does Mortar Group manage construction risks?
Our integrated architecture and development teams provide thorough reviews and use fixed-price contracts when feasible, minimizing cost overruns and delays in our real estate projects.
How are Mortar Group projects financed?
We finance projects with a balanced mix of senior debt from reputable lenders, preferred equity or mezzanine loans, limited partner equity, and our own co-investment, ensuring stable capital structures for real estate syndications.
How does Mortar Group ensure transparency for investors?
We provide quarterly reports with project updates, budgets, and photos via our secure investor portal, keeping you informed throughout the investment lifecycle.
How does Mortar Group select investment opportunities?
We use data-driven market analysis, focusing on high-growth neighborhoods with strong demand and design potential. Our expertise looks to make projects meet both aesthetic and financial goals.
Access and Communication
How can I learn about new Mortar Group investment opportunities?
Accredited investors can join our investor list or schedule a consultation at info@mortargroup.com. New real estate syndication offerings are shared directly before public release.
Can I tour a Mortar Group project?
Yes. We offer walk-throughs for investors during construction and prior to project completion. Contact us at info@mortargroup.com to arrange a visit.
How do I contact Mortar Group?
Reach us at info@mortargroup.com or through our Contact Page for personalized support on real estate syndication investments.
What makes Mortar Group different from other real estate syndication firms?
Our architect-as-developer model, no-fee structure, and hands-on approach deliver superior design and returns, setting us apart in NYC’s real estate syndication market.
How does Mortar Group support first-time real estate syndication investors?
We provide personalized consultations, educational resources, and transparent reporting via our investor portal, ensuring first-time investors feel confident and informed.
What is the difference between development and income-producing investments?
Development projects (2–4 years) focus on value creation through construction, offering higher potential returns with increased risk. Income-producing assets (5–10 years) generate steady cash flow with lower risk, ideal for passive income.
What does “Architect-as-Developer” mean?
Our architect-as-developer model integrates design and development in-house, eliminating third-party inefficiencies. This approach reduces costs, accelerates timelines, and ensures creative vision aligns with financial performance, maximizing value for real estate syndication investors.