Oak Street Assets
FAQs

Oak Street Assets is a private real estate investment firm founded by Tim Fergestad. We help clients achieve superior risk-adjusted returns through the acquisition of apartment communities nationwide. Oak Street Assets is financed by accredited investors seeking a combination of strong cash flow and equity growth.

We purchase apartment complexes with a very specific set of criteria – manage them effectively – and distribute cash flow to investors.

Multifamily is another term for apartments. There are smaller multifamily properties such as duplexes, and there are larger commercial multifamily properties which consists of anything from 5 units to large communities with hundreds of units.

At Oak Street Assets we typically invest in larger projects that have 100+ units which allows us to scale on-site processes, reduce expenses and generate greater returns for our investors.

Unlike traditional investments, where you have no control and are simply hoping what you bought goes up in value, Multifamily investing is a business plan that creates value through tangible improvements to cash flow at a physical asset. Such revenue can generate passive income for investors, and the greater the net operating income, the greater the value of the property.

Combine this with any market appreciation, any amortization, and the tax advantages of real estate, and you have the greatest wealth-building vehicle on earth.

“Ninety percent of all millionaires become so through owning real estate.” -Andrew Carnegie

At Oak Street Assets, we invest alongside our partners and ensure that every deal is fully researched to ensure maximum returns and minimum risk. We communicate regularly and are always available to help our investor partners.

You can join our free community here. Our Investor Club members are the first to receive notifications of new deals.

Due to SEC regulations, we must have a pre-existing, substantive relationship with our investors in order to share all of our offerings.

Getting started is simple – simply fill out the investor form and schedule a call with our team here.

As a passive investor, you have no active responsibilities in the deal. Our team, the general partner (also referred to as a “Sponsor”), does all the work. This includes sourcing and managing the asset on your behalf and the other limited partners invested in the deal.

Yes, in addition to investing with cash, many of our investors direct retirement funds through various retirement plan accounts (Self-Directed IRA, Solo 401K, SEP IRA, Simple IRA).

We work with a number of affiliates and are happy to discuss how to boost your retirement returns and create wealth with real estate investing.

Please reach out as we often have opportunities and can have multiple 1031s in a given deal allowing for lower investment amounts.

Many of our investments are 506c offerings, which require you to be an Accredited Investor (see next question), although we do have opportunities from time to time that only require we have a pre-existing substantive relationship.

Getting started is simple – simply fill out the investor form and schedule a call with our team here.

There are several ways to be considered an accredited investor as defined by the Securities and Exchange Commission. The most common are either you have
a net worth of $1 million, (not including equity in your primary residence)

or

have an annual income of $200,000 per year (or $300,000 if you’re married) and have done so for the last two years, and expect to maintain that level of income through the current year.

A REIT is a real estate-flavored stock. Real estate is a physical asset that has an address, is insured, and is not correlated with the stock market. Real estate is a much more stable asset class with a better risk-return profile and much less volatile than the stock market. It also allows for much better wealth growth over time because of control and significant tax advantages.

Rather than being a traditional consumer or target for the financial industry, look at where the wealthy and successful invest. Books like Tony Robbins’s recent ‘The Holy Grail of Investing’ and Robert Kiyosaki’s classic ‘Rich Dad, Poor Dad’ are great places to start learning about the power of alternative investments and what top experts recommend as a diversified portfolio.

Generally, after paying the preferred return to the limited partners, the profits will be split between the general partners who bring the deal and do all the work and the limited partners who put up the money. The private placement memorandum document will detail how the money is split.

“When investing, always be certain that everyone’s interest is aligned with yours and then make sure they have skin in the game.” – David Osborn

At Oak Street Assets, we usually look for an 8%+ cash-on-cash annual return with an IRR north of 15% over the hold period (we look for a conservative plan that targets a 20% Average Annual Return, doubling of investor capital in 5 years). In a value-add project, a large part of the investor returns come in the year of sale.

Actual returns vary on a property-by-property basis. If you’d like to hear more about our criteria and investment process, contact us here.

You’ll receive a Schedule K-1 tax form to include with your tax filings each year. This form reports your income and losses for the investment. At the time of sale, the partnership gains are treated as long-term capital gains.

*Please consult with your tax professional or CPA to obtain the most accurate tax information for your unique situation.

While there are no guarantees with any investment, we work hard to ensure that every deal has proper reserves and multiple exit strategies in order to best protect and grow your capital.

We pride ourselves on having great relationships with our investors and being accessible. Whenever you want to talk to us, reach out, and we will schedule a call to answer all of your questions and help you achieve your goals.

To get started, join the Oak Street Assets Investor Club. We’ll take some time to get to know you and your investing goals, and then we’ll share upcoming investment opportunities with you.

We will educate you and help align your goals with our offerings. If you are unclear on anything, please reach out, and we can help you find answers (e.g., how much to invest, when to expect returns, what tax benefits are available, etc.).

The Oak Street Assets Investor Club is free to join, and there is no investment commitment. Click here to join us.

To learn more about investing through one of our retirement partners, click here.