There are many different real estate opportunities available to investors. Purchasing properties for rental income is always an option, but what if you’d rather not be responsible for managing someone else’s primary residence?
If this—or a similar concern—has been keeping you from making your own real estate investments, then we have good news: there are other options available that don’t require any property management!
First National Realty Partners (FNRP) is a private equity firm that specializes in grocery-anchored commercial real estate and necessity-based retail space. Working primarily with national brands, they offer investors large potential gains, quarterly cash distributions, and hand-selected investment opportunities.
However, not everyone will qualify for FNRP. Wondering if this is a potential investment option for you (if so, is it worth investing in)? Keep reading to find out!
As mentioned above, FNRP is a private equity firm that invests in a variety of handpicked, high-quality commercial properties. The company holds various individual properties, but necessity-based retail space—and similar properties such as a grocery-anchored retail property—are mainly the types of properties it invests in.
All investors are responsible for is investing: nothing else. FNRP takes care of the entire process, from property selection and acquisition to disposition. In return for their investments—as well as paying any applicable fees—investors enjoy a consistent cash flow in the form of quarterly cash distributions. The company has historically offered an annual cash distribution of 6% to 9%, depending on the particular property in question.
First National Realty Partners used to only offer their real estate deals to institutional investors. However, they have thankfully reduced their investment requirements. Nonetheless, not all interested investors will be prospective investors.
Whereas many real estate investing companies offer their services to both the accredited and non-accredited investor, FNRP’s real estate investments are only offered to accredited investors. To qualify, you’ll need to be a high-net-worth investor (with a net worth exceeding $1 million) or have an annual income exceeding $200,000. You can also qualify if your and your spouse’s combined income exceeds $300,000 per year.
In addition to being accredited, interested retail investors will also need to be able to pay a minimum deposit of $50,000 on an investment offering.
If you meet the minimum investment requirements for FNRP then you’re able to invest. However, you’ll first need to head over to their website and make an account before you can start.
Once that’s completed, you’ll be able to view their current investment offerings in detail. Some basic information is available without making an account, but you’ll need to be registered if you want to access critical information. Fees vary from deal to deal, but some possible fees you may be responsible for are the:
- property management fee
- disposition fee
- annual asset management fee
- acquisition fee
To get this additional information, you’ll need to “attend” the deal webinar for the specific property you’re interested in. In addition to any applicable fees and the minimum investment requirements, this webinar will also cover internal rates, anticipated returns, and other property specifics for your potential investments.
Assuming everything checks out and you can meet the minimum investment requirements, you can now fund your investment. Like many other real estate firms, FNRP accepts the investment minimum via wire transfers.
Although you may be able to afford the investment minimum—and perhaps you even consider it an affordable price to pay—it’s important to remember that FNRP only offers long-term investments. Liquidity is non-existent, which means you won’t be able to get your funds back until the deal has run its course. Ensure you can afford to lose your investment before making it.
First National Realty Partners considers each property on an individual basis. However, they generally target annual returns of 12-18% (paid via quarterly distributions). As the investor, this means you’ll enjoy a consistent cash flow.
The targeted returns are a bit ambitious, but there’s a lot of upside potential. As of this year, FNRP has offered an average return of 24.03%. However, these real estate assets usually offer cash distributions of 6-9%.
Any investment made with FNRP will be an illiquid investment. This may not be much of a concern for a high-net-worth investor, but it’s still a factor worth considering. Alternative investments like REITs often offer secondary markets where investors can sell their assets, but this isn’t the case for FNRP investments.
You’ll need to stay committed for the entire investment lifecycle. Each real estate private investment opportunity will run for a different duration, which means you should consider each property on a case-by-case basis.
Investing with this real estate investment firm has a lot of upside potential, particularly for the accredited investor who’d prefers quarterly distributions over rental income. Focusing mainly on grocery-anchored commercial real estate, FNRP offers a unique investment opportunity to those who meet its rigorous investment criteria.
However, if you don’t meet the required investor status—either from your annual income or the investment minimum—there’s still hope. You have plenty of alternative options available that don’t require you to be an accredited investor!
Truthfully, First National Realty Partners may not be the service for everyone. It’s ideal only for long-term investors with a consistent cash flow who can afford to stick it out for the long haul. That said, if the previous description applies to you, FNRP is definitely a service worth checking out. Between the consistent annual returns and their average rate of returns, it’s an investment you can almost count on profiting from.