Frequently Asked Questions

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Marzo Capital Group is a nationally recognized, alternative investment company with a focus on real estate. We specialize in the acquisition, development, management, and brokerage of assets across a diversified portfolio delivering superior risk-adjusted returns for investors.

To learn more about MCG, visit the About Us section of our website.

As a leading alternative investment company with over $1 billion in sales and 100+ deals funded; our goal is to source the highest quality investments on the planet. Through our strategic partnerships with world leading investment firms like Blackstone, KKR, and many more, MCG offers one of the largest selections of alternative investments in the country. Our extensive Marketplace offers a variety of real estate investments in various asset types and geographical locations throughout the country. Marzo Capital Group is a licensed real estate brokerage and investment advisor.

Our services include:

  • • Investment Sales
  • • Investment Advisory
  • • Asset Management
  • • Acquisition/Disposition
  • • Development
  • • Brokerage
  • • Research
  • • Valuation
  • • Leasing
  • • Capital Markets
  • • Debt Placement
  • Getting started as an investment partner is quite simple.
    Fill out the registration questionnaire form online here:
    A team member will reach out to you within 24 hours after completing the online form.

    Our funds are set up as SEC 506b funds which require investors to be Accredited Investors.

    Rule 501 of Regulation D of the U.S. Securities and Exchange Commission (SEC) states: An accredited investor, in the context of a natural person, includes anyone who:

  • • Income exceeds $200,000 /year (or $300,000 /year joint with spouse) in each of the prior two years, and reasonably expects the same for the current year,
  • OR
  • • Net Worth exceeds $1 million excluding value of the primary residence

  • **If a person is married within this period, an exception may exist in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years. In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
  • • any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
  • • any entity in which all the equity owners are accredited investors.

  • In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

    MCG offers several different account types to invest through.

  • Individual
  • Joint WROS
  • Joint TIC
  • Self-Directed IRA (Traditional, Roth, SEP, Simple)
  • Self-Directed 401k
  • Trust
  • Sole Proprietorship
  • Limited Liability Corporation (LLC)
  • Corporate (S or C)
  • General Partnership
  • Limited Partnership
  • Defined Benefit Plan
  • Defined Contribution Plan
  • 403b
  • 457
  • Profit Sharing
  • Thrift Savings Plans
  • Charitable
  • 529 College Savings
  • UGMA
  • DVP/RVP

  • And many more.

    Depending on the fund, most distributions are paid monthly, quarterly, or semiannually.
    **For Zero Cash Flow deals there are no distributions.

    Distributions can be paid through check, direct deposit (ACH) or money market fund (cash account) the asset is held within.

    Schedule K-1 is an Internal Revenue Service (IRS) tax form issued for investment in a partnership. The purpose of the Schedule K-1 is to report each partner's share of the partnership's earnings, losses, deductions, and credits. 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.
    As a limited partner in the entity that purchases the properties, you will receive a K-1 for tax reporting. 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.

    K-1s are provided to investors on an annual basis and most sponsors finalize all K-1s by March 15th.
    **Issuing sponsors may request an extension to issue K-1s for the tax reporting year under certain circumstances. The latest extension must be filed by September 15th, As a result, you may be required to obtain extensions for filing federal, state and local tax returns.

    Yes! You can reside from anywhere as long as you satisfy the “Accredited Investor” requirements set forth by the SEC and your account is not “flagged” by ALM regulation for terrorism, money laundering or tax evasion.

    It varies. Each deal contains different investment horizons ranging anywhere from an average of 5-7 years. When investing in private funds, an investor should always plan to invest with a 10-year time horizon in mind. However, most funds mature under 7 years.

    By nature, real estate invests are illiquid. There is no active secondary market for private real estate funds. However, most sponsors offer options to potentially liquidate in the event of emergencies for small fees.

    The majority of our funds are owned and operated by the largest private equity and investment firms in the world, giving investors an added layer of security. In the event of a passing by a key member or asset manager, your beneficial interest within those funds do not change or dissolve. The underlying investments will continue to cash flow and a successor will be assigned to take over the asset management role within that entity.

    Just about everything. Real Estate crowdfunding sites typically partner with smaller, less established sponsor/developers with less experience looking to raise outside capital in order to close on their deals. We work exclusively with the largest sponsor/developers and deliver pre-closed investment ready properties with average deal sizes exceeding $25 million. In addition, we offer several different deal structures to accommodate all types of investing including retirement accounts, Delaware Statutory Trusts, qualified opportunity zones, 1031 exchanges, 721 exchanges and more.

    Public Real Estate Investment Trusts (REITs) are common (or preferred) shares issued from a public company and are considered equities (stocks). Real estate is physical ownership in real assets while equities (stocks) are shares of stock in the underlying companies.
    Owning private real estate or Delaware Statutory Trust interest allows an investor to be a partner of the underlying real estate and offers many potential benefits over public REITs including:

  • 1. Ability to Raise Value
  • 2. Achieve Higher Risk-Adjusted Returns
  • 3. Better Diversification
  • 4. Higher Stability
  • 5. Lower Volatility through Non-Correlated Assets
  • 6. Tax Optimization (depreciation, 1031 Exchange tax deferral, interest write offs)

  • Since Delaware Statutory Trusts (DSTs) ownership is classified as “direct interests” through IRS Revenue Ruling 2004-86, these investment vehicles qualify as “like-kind” property to perform a 1031 exchange in and out of.
    **Private real estate funds are illiquid investments. Please consult with your CPA to see if private real estate is right for you.

    For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.

    Or, visit our Investments Center to learn more about real estate funds.

    A Delaware Statutory Trust (DST) is a legal entity created under Delaware law that permits fractional ownership of real estate assets. This Delaware Statutory Trust (DST) was created to replace the Tenant in Common (TIC) structure which had many faults. A DST has the unique ability to be treated as physical real estate ownership allowing an investor to 1031 exchange in and out of. The DST offers taxable benefits including depreciation, mortgage interest exemptions and many more.

    For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.

    Or, visit our Education Center to learn more about Delaware Statutory Trusts (DST).

    Section 1031 of the Internal Revenue Code, provides a simple, strategic method for deferring capital gains or recapture tax from the sale of real property. This is done by completing what is most commonly referred to as a like-kind, or 1031 exchange. This makes the 1031 exchange potentially the single most important tax strategy for preserving and growing the value of your real estate investments.

    For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.

    Or, visit our Education Center to learn more about 1031 Exchanges.

    There are currently two types of property which qualify as like-kind:

  • 1. Property held for investment purposes, and, or
  • 2. Property held for a productive use in a trade or business.

  • Example
    Apartment building for Retail Strip Center

    **Exchanging from property to equities (stocks) do not qualify under the Like-Kind Exchange. (Ex. apartment building for Microsoft Inc stock)
    For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.
    Or, visit our Education Center to learn more about 1031 Exchanges.

    There are several.
    The most common benefits of a 1031 Exchange include:

  • • Tax Deferral
  • • Diversification
  • • Purchase Larger Properties
  • • Better Leverage
  • • And many more…
  • For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.
    Or, visit our Investments Center to learn more about real estate funds.

    Yes. There are three basic guidelines to follow.

  • 1. Value: The purchase price of the replacement property must be equal to or greater than the net sales price of the relinquished property
  • 2. Equity: All equity received from the sale must be reinvested into the replacement property
  • 3. Debt: Exchanger must obtain equal or greater debt on the replacement property.

  • **Exception: a reduction in debt can be offset with additional cash from the exchanger.


    For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.
    Or, visit our Education Center to learn more about 1031 Exchanges.

  • 1. The Three Property Rule
  • 2. The 200% Rule
  • 3. The 95% Rule


  • For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.
    Or, visit our Education Center to learn more about 1031 Exchanges.

    A replacement property must be identified before the end of the 1031 Exchange 45-day identification period. Any replacement property you receive before the expiration of the identification period will be treated as “identified”.
    All replacement property must be finalized in a written document and signed by you. This document must be sent before the end of the 45-day ID period to a Qualified Intermediary.
    For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.
    Or, visit our Education Center to learn more about 1031 Exchanges.

  • 1. 45-Day Identification Period: All replacement properties must be IDed by the end of the 45th day from when the relinquished property was closed.
  • 2. 180 -Day Closing Period: All Identified replacement properties IDed within the 45 Day Identification Period must be closed on.
  • No. The IRS has strict codes and cannot be extended for any reason except a Presidential Disaster Declaration. Weekends and holidays are NOT included in this exception.
    **The 45 & 180 day timelines go off of calendar days, not business days.

    A: A Qualified Intermediary also known as Q.I. plays a pivotal role in all stages of the 1031 exchange process.

    For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.
    Or, visit our Education Center to learn more about 1031 Exchanges.

    Original Purchase Price + Improvements – Depreciation = Net Adjusted Basis
    **Consult these figures with a licensed CPA or Qualified Intermediary

    For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.
    Or, visit ourEducation Center to learn more about 1031 Exchanges.

    Sales Price - Adjusted Basis - Cost of Sale (expenses) = Capital Gain
    Capital gain tax is tax on the growth in value of an investment when a sale or transfer occurs. When an asset is sold, the gain or loss is considered “realized” by the IRS thus creating a taxable or non-taxable event. Capital gains are the difference from the original cost basis and the adjusted basis after all expenses.

    Capital Gains Calculator
    **Consult these figures with a licensed CPA or Qualified Intermediary

    For more information we encourage investors read our free ebook titled “The Power of 1031 Exchanges and Delaware Statutory Trusts (DSTs) here.
    Or, visit our Education Center to learn more about 1031 Exchanges.

    NO.

    Marzo Capital Group will set up the necessary account(s) with our clearing agent, Bank of New York Mellon Pershing to hold and insure your assets. Once the account is established, account owners have 24/7 online access to view the account(s) and gain access to important tax documents.

    If completing a 1031 Exchange, Marzo Capital Group works directly with your team (attorney, accountant, qualified intermediary, etc.) in coordinating your exchange. When you’re ready to complete your exchange, you and your team review the closing statement, then authorize your qualified intermediary to transfer your 1031 funds directly to the title company where the closing takes place.

    Visit About Us to learn more about our clearing agent or Contact Us to request a company brochure.

    Bank of New York Mellon Pershing

    Visit About Us to learn more about our clearing agent or Contact Us to request a company brochure.

    Pershing, a subsidiary of The Bank of New York Mellon is the world’s largest provider of custodial banking solutions. Since 1939, Pershing has provided comprehensive correspondent securities execution, clearance, data processing, and financial products for over 1,300 clients in 30 countries. With Pershing, The Bank of New York services global assets of over $38 trillion.

    Visit About Us to learn more about our clearing agent or Contact Us to request a company brochure.

    All transactions are processed through our broker dealer, Emerson Equity, LLC. Founded in 2003, Emerson Equity is a leading investment broker dealer based in San Mateo, California. The company offers a diverse range of products including traditional brokerage, fee-based investment advisory and alternative investment solutions. Emerson Equity, LLC Member: FINRA, SIPC (CRD#: 130032 / SEC#: 801-71293,8-66296)

    Visit About Us to learn more about our clearing agent or Contact Us to request a company brochure.

    Yes. Every investment including US Treasuries carry some degree of risk. Our primary goal is to mitigate risk by performing extensive due diligence and utilizing best-in-class asset managers.
    Some of the risks associated with owning real estate can include:

  • • Illiquidity
  • • Loss of Investment
  • • Market Risk
  • • Economic Risk
  • • Credit Risk
  • • Debt Risk
  • • Asset-Level Risk
  • • Inflation
  • • Natural Disaster
  • • Distribution Suspension

  • We encourage every investor to read the prospectus and Private Placement Memorandum (PPM) carefully before making an investment decision. Real estate investors should inquire about these risks and receive straight answers to be more confident in their investing decisions. Be aware of any investment opportunities that do not make all risks involved crystal clear.

    Our advisors are here to help you further understand the risks involved.

    For more information, read our Disclosures & Disclaimers and Terms of Use.

    Absolutely.
    Our team of experts are here to answer any questions you may have. For general questions, contact our support team at info@marzocapitalgroup.com or call us toll free (888) 495-7355. You can also book an appointment with an advisor at your convenience on our calendar.

    Yes of course!
    Owning real estate is a major financial decision. With over 50 years of combine experience and over $1 billion in real estate transactions, we are here to be an ongoing resource for you.
    Every client is assigned a full-time advisor. Our investment partners also have access to our team of asset managers, deal sponsors and receive quarterly statements and updates throughout their ownership period.

    A lot!
    MCG is a licensed real estate brokerage, wealth manager, insurance broker and Certified Estate Planner (CEP).
    As an added service to our clients, we offer all aspects of wealth management, retirement planning, insurance, and estate planning.
    As a real estate brokerage firm, we can offer buy/sale representation, property valuation analysis, broker opinion of value (BOV), due diligence assistance and much more.

    For general questions, contact our support team at info@marzocapitalgroup.com or call us toll free (888) 495-7355. You can also book an appointment with an advisor at your convenience on our calendar.

    Investment-grade leases are leases to tenants that maintain a credit rating of BBB− or higher. This investment rating is given by the major rating agencies such as S&P's, Moody's, or Fitch. These ratings directly represent a company's ability to repay its obligations and remain solvent. BBB− represents a "good credit rating" according to the rating agencies. Typically, larger publicly traded, national companies maintain these stronger credit ratings.
    Regional tenants and franchises do not report quarterly earnings in order for rating agencies to place a rating status. In most cases, it is recommended that a lease be corporate backed (backed by the parent company and not franchisee).

    Typically, "long-term" describes a fixed-length obligation in lease term at or beyond 10 years. Along with the initial lease period, there are usually lease options as a part of the fixed lease term. It is important to distinguish between the options and obligations. For example, if a newly executed lease is signed by XYZ corp for a 10-year initial term with (2) 5 year option periods, this does not make it a “20 year lease”. The option periods are simply lease extensions giving the tenant the right to exercise if deemed fit.
    National corporate tenants tend to include contingencies within the language of the lease which must be sought after. Find out rent terms and how long the tenant is obligated to pay. It makes all the difference when considering your risk, returns, ability to obtain financing, and your ultimate ability to resell the property for a profit.

    Double-Net ("NN") and Triple-Net (or "NNN") leases are lease structures whereby the tenant is responsible for all operating expenses, including taxes, insurance, the structure, and the roof. A pure NNN lease that will cover these costs throughout the term of the lease is often referred to as an "absolute NNN lease." Some leases are called "triple net" that do not include the expenses of the roof or structure of a building.
    These types of leases are more accurately referred to as "modified NNN" or "double-net" ("NN") leases.
    It is important to differentiate lease types when considering investment property. Roof and structure repairs can be very costly and may provide your tenant an early out for their lease obligations if the structure is not maintained properly. On the other hand, if you acquire a double-net property with appropriate warranties, you may be able to get a materially higher income than you would with an absolute triple-net.

    Simply put, in a ground lease structure, the owner owns the rights to the land or “dirt” the property sits on and receives ground rents as compensation. Initially, a tenant upon development will pay to have a building constructed and pay the owner of the lot for continued land rights.
    In a fee simple structure, the investor owns the land and structure which the building sits on. Initially, upon development, the tenant allowed a developer to perform a full build-to-suit construction for their establishment. This means, supply the land, construct the building and deliver a final Certificate of Occupancy (CO).
    Both structures carry advantages and disadvantages depending what an investor is seeking. For more information email info@marzocapitalgroup.com .

    Like any investment, there is always some level of risk. Multifamily has been among one of the most resilient asset classes. As the population grows, affordable housing is in demand than ever with a national shortage of buildable units across the country. As a leading asset class, multifamily owners are able to add value through upgraded renovations and raise market rents to increase the property value. Multifamily units tend to remain at high occupancy levels in high barrier to entry markets creating consistent, predictable cash flow for investors.

    Like any investment, there is always some level of risk. Our strategy when acquiring existing properties specifically seeks out centers which can be acquired for under replacement cost. As investors, this positions us to offer competitive rental rates to new or existing tenants vs. high-cost new construction being built. If we are performing a build-to-suit development for a major retailer, the lease commitment has been signed prior to commencement of construction. This then alleviates most risk from the equation.

    Like any investment, there is always some level of risk. Self-Storage carries some of the lowest risk in the real estate landscape. Our strategy when acquiring existing facilities specifically seeks out properties that have inefficiencies and are in need of capital improvement. Through our extensive knowledge, MCG is able to reposition a distressed facility and aggressively rebrand and redevelop the property bringing it up to institutional grade standards. This then raises the net income derived from the asset giving it a higher resale value.

    Like any investment, there is always some level of risk. Acquisition opportunities in the manufactured housing community sector remains highly fragmented. By nature, MHPs carry many moving parts and require hands on maintenance. Another constraint in the MHP sector are non-institutional investors attempting to acquire directly without experienced management to take advantage of market inefficiencies. Although lucrative investments, MHPs need strict management and systems in place for optimum viability.

     

     

    Self-storage

    Why own Self-Storage?

    • Stable, Simple and Predictable cash flowing assets
    • Growing industry with high demand
    • Highest Return on Investment (ROI)
    • Lowest Default Rates of any product types: .24% vs. 4.5% in Multi-family
    • Low maintenance
    • Low overhead
    • No “Tenants, Toilets & Trash”
    • Non-cyclical, recession & inflation proof
    • Highly fragmented private owner ratio (5:1)
    • Garners sticky tenants (tenants more willing to renew leases YOY vs. Multi-family)
    • Easier to get financed by traditional lending sources
    • More favorable loan rates

    Does Self-Storage carry risk?

    Like any investment, there is always some level of risk.  Self-Storage carries some of the lowest risk in the real estate landscape.  Our strategy when acquiring existing facilities specifically seeks out properties that have inefficiencies and are in need of capital improvement.  Through our extensive knowledge, MCG is able to reposition a distressed facility and aggressively rebrand and redevelop the property bringing it up to institutional grade standards.   This then raises the net income derived from the asset giving it a higher resale value.

    The self-storage industry has outperformed all other commercial real estate sectors over the last fifteen years with an average return of over 20 percent.  This $38 billion dollar industry is being fueled by the rise of apartment living leading to increased demand for space.  Today, 1 in 10 US households rent self storage units compared to 1 in 17 in 1999.  Unlike multifamily, this niche product type offers attractive, non-cyclical returns without the liability of tenants, toilets and trash. 

    Development

    Since the great recession demand for self-storage units have grown considerably despite limited new development.  New developments on average have absorbed approximately 600 facilities in 2018, compared to the average of 2,100 facilities per year from 2000 to 2009.  By purchasing well located sites in markets showing supply shortage and strong growth potential, development continues to be a profitable strategy. With in-house site selection and development, we are uniquely positioned to move quickly and take advantage of opportunities capable of delivering above-market returns.

    Acquisitions

    The self-storage landscape today is comprised of 54,000+ facilities, 80% of which are held by private owners of four facilities or less.  This creates a unique opportunity for value-add & redevelopment investors by purchasing distressed then upgrading the facility to institutional grade standards.  Marzo Capital Group is well positioned to acquire existing facilities and drive outsized returns through operational efficiencies and diligently deploy capital improvement plans.  Strategies vary from redeveloping distressed facilities, building conversion (big box retail, warehouses, etc.), lease up of vacant space through aggressive marketing, utility efficiency programs, rebranding, climate control additions, retail or special use space (if applicable), storage containers, movable modules, automation, RV & trailer spaces, truck rentals, moving supplies, etc.

     

     

    Mobile Home Parks

    Why own Mobile Home Parks?

    • Lower Cost Per Unit
    • Lower cost for repairs and maintenance
    • High Return on Investment (ROI)
    • Risk Diversification
    • High Demand, Low Supply
    • High Occupancy, Less Tenant Turnover
    • Non-Institutional, “Mom and Pop” Owners
    • Less Competition
    • Alternative to Multi-Family
    • Non-cyclical recession & inflation proof
    • Highly fragmented private owner ratio (8:1)
    • Garners sticky tenants (tenants more willing to renew leases YOY vs. Multi-family)
    • Easier to get financed by traditional lending sources
    • More favorable loan rates

    Do Mobile Home Parks carry risk?

    Like any investment, there is always some level of risk. Acquisition opportunities in the manufactured housing community sector remains highly fragmented.  By nature, MHPs carry many moving parts and require hands on maintenance.  Another constraint in the MHP sector are non-institutional investors attempting to acquire directly without experienced management to take advantage of market inefficiencies.  Although lucrative investments, MHPs need strict management and systems in place for optimum viability.

    Affordable housing has become the hottest arena in the commercial real estate space due to high demand and short supply. The overdevelopment of class A multi-family communities have lead to a discrepancy in market rents, making MHPs great alternatives to the Multi-Family sector.  With over 20% of Americans living on $20,000 per year or less, demand has hit peak levels and will only continue to rise.  In addition, MHPs carry some of the lowest vacancy rates of any product type which offers great stability and diversification to any portfolio.  Marzo Capital Group is well positioned to acquire and stabilize distressed parks in excellent sub-markets offering affordable housing at a lower cost per unit.

    The Highest Quality Alternative Investments Period.