Frequently Asked Questions
FAQ
What exactly does Trust 2 Capital do? Trust 2 Capital began as a small group of investors with a shared mission — to build wealth through strategic real estate acquisitions. Over time, our ability to uncover high-quality multifamily and self-storage opportunities has grown our network from a handful of partners into a nationwide community of investors. Most of my time is spent researching and analyzing opportunities. My goal is simple: find the best teams, the best properties, and the best markets. Best Teams: We partner with operators and property managers who can execute a clear, data-driven business plan. We look for teams with significant experience, operational excellence, and a proven track record of delivering strong returns for investors. Best Properties: We target assets with strong in-place performance and substantial upside potential — properties where we can add value through renovations, better management, and operational improvements. We look for opportunities that can realistically double investor equity in three to five years. Best Locations: We focus on markets with growing populations, strong job creation, and economic diversity. We like to see high median household incomes and home values, because those fundamentals support strong rent growth and tenant quality. When we find the right combination — a great team, a great property, and a great market — we know we’ve found a home run opportunity. Of course, every investment carries risk, and not every deal performs exactly as expected. But with careful underwriting, strong partners, and disciplined execution, we believe most of our investments will create substantial wealth for our investors over time.
How is working with Trust 2 Capital different? At Trust 2 Capital, we do the research so you don’t have to. Our mission is to check all the boxes: a great property, in a great location, backed by a great team. We are not limited to our own internal resources — we actively seek out the best operators, best markets, and best opportunities across the United States. By partnering with experienced teams and proven operators, we’re able to find and execute deals with strong upside potential and durable cashflow. Most importantly, we invest alongside our partners. With our own capital in every deal, we are fully aligned to deliver maximum returns while working to minimize risk. Every property we pursue is carefully underwritten, stress-tested, and vetted to ensure it meets our strict criteria for performance. While we work tirelessly to bring you exceptional opportunities, we encourage all investors to perform their own due diligence. Real estate carries risk, but with the right team, the right deal, and the right plan, we believe the rewards can be extraordinary.
Do I need to be an accredited investor to work with Trust 2 Capital? ome of Trust 2 Capital’s offerings are structured as 506(c) investments, which require participants to be accredited investors. However, we also offer 506(b) opportunities, which allow certain non-accredited investors to participate. Because 506(b) offerings cannot be publicly advertised, they are not posted on our website. To access them, you’ll need to join our private 506(b) investor list. If you’re interested, schedule a call with our team to discuss your goals and get added to our list. Trust 2 Capital serves investors of all experience levels, and we believe everyone should have the opportunity to learn about real estate investing — whether you’re just getting started or expanding a growing portfolio.
How do I replace my active income with passive income? There are many ways to approach real estate investing, but at Trust 2 Capital, we believe in keeping a steady flow of new opportunities coming into the portfolio. As prior investments go full cycle and are sold, we reinvest that capital into the next deal — creating exponential growth over time. Many of our projects are designed to double investor equity in three to five years (or sooner). This cycle of reinvestment creates a consistent flow of capital, ensuring we never miss out on the next great opportunity. Of course, it takes time to reach this point — the longer you wait to get started, the longer it takes to build momentum. We encourage investors to diversify across multiple deals whenever possible and to be diligent in selecting opportunities. A great investment checks three boxes: •A strong team with the experience and ability to execute the business plan •A strong property with upside potential and durable cashflow •A strong market with population growth, job growth, and healthy fundamentals If you don’t have the time or experience to carefully vet deals, consider investing alongside experienced sponsors who do this work every day — that’s exactly why we created Trust 2 Capital. When we launched Trust 2 Capital, we missed out on a few incredible opportunities simply because we didn’t have enough capital raised to close. We learned quickly that, as Rod Khleif says, “multifamily is a team sport.” The larger and stronger our network, the better our deal flow — and the better our ability to move quickly and secure great assets. Our goal is simple: combine the collective experience, capital, and ability of our network to deliver success for every investor involved
How do I know that I can trust the General Partner team to have my back? t Trust 2 Capital, we partner with real estate teams whose compensation is tied directly to property performance. This alignment ensures they are highly motivated to execute the business plan and maximize returns — because our investors (that’s you) get paid first. Most of our syndications are structured with a preferred return. For example, if a deal has an 8% preferred return, the first 8% of annual profits go to the limited partners (investors) before the general partners receive any profit participation. The Private Placement Memorandum (PPM) for each offering clearly defines this structure — including how cashflow, profits, and sale proceeds are distributed. After the preferred return is paid, the remaining profits are typically split between the general partners (who source and operate the deal) and the limited partners (who provide the capital). This structure aligns everyone’s incentives — the better the deal performs, the better everyone does. It’s why we invest our own capital alongside our partners and why we seek operators with meaningful “skin in the game.” As NYT best-selling author David Osborn says: “When investing, always be certain that everyone’s interest is aligned with yours and then make sure they have skin in the game.”
Why is multifamily better than the stock market? Unlike the stock market, where investors have no control over the growth of their assets, multifamily and self-storage investments allow us to force appreciation. By upgrading units, improving operations, and optimizing pricing, we can directly increase revenue — which increases the property’s value. Multifamily and commercial real estate are valued not by neighborhood comparables (like single-family homes) but by Net Operating Income (NOI). The formula is simple: Property Value = Net Operating Income ÷ Market Cap Rate That means every dollar of additional NOI directly drives value. For example, if we raise rents by $300 per month across 150 units, that’s $540,000 in additional annual NOI. At a 5% cap rate, this adds roughly $10.8 million in value (less vacancy adjustments) — a dramatic wealth multiplier for investors. At Trust 2 Capital, we partner with experienced teams who execute these strategies and are compensated based on performance. This alignment ensures that everyone is focused on delivering strong results. As Andrew Carnegie famously said: “Ninety percent of all millionaires become so through owning real estate.” And as Robert Kiyosaki reminds us, paper assets like stocks may create volatility — but cash-flowing real assets build lasting wealth.
What is the difference between this and a REIT? When you invest in a REIT, you are buying shares in a company, just like when you buy shares in a stock. You do not own the underlying real estate, you own shares in the company that owns those assets. When you invest in a real estate syndication, you are investing directly in a specific property. Together with the other limited partner investors and general partners, you will own the entity (usually an LLC) that holds the asset. Thus, you have direct ownership. When you invest in an apartment REIT, that REIT will likely own and manage a lot of apartment buildings in multiple markets across the country. With a real estate syndication, you are investing in a single property in a single market. With a REIT, you can invest a very small amount of money, just like a stock. Syndications typically have higher minimum investments, often about $50,000 or higher. When you invest directly in a property through a real estate syndication, you get the benefit of a variety of tax deductions, including depreciation. In some case those tax benefits can be quite substantial. The depreciation benefits often surpass the cash flow, so you’re showing a loss on paper while you’re actually getting positive cash flow. Further, you can use those paper losses to offset your other income, like income from your job. When you invest in a REIT, because you’re investing in the company and not directly in the real estate, you do get the benefits of depreciation, but those are factored in before you get your dividends, so you don’t get any tax breaks on top of that, and you can’t use that depreciation to offset any of your other income. And any dividends are taxed as ordinary income, which can contribute to a bigger, rather than smaller, tax bill. Multifamily and commercial real estate are valued not by neighborhood comparables (like single-family homes) but by Net Operating Income (NOI). The formula is simple: Property Value = Net Operating Income ÷ Market Cap Rate That means every dollar of additional NOI directly drives value. For example, if we raise rents by $300 per month across 150 units, that’s $540,000 in additional annual NOI. At a 5% cap rate, this adds roughly $10.8 million in value (less vacancy adjustments) — a dramatic wealth multiplier for investors.
My financial advisor has my portfolio of stocks diversified including REITs. Does this count? A diversified stock portfolio is not diversified at all – it’s all the same asset class. If the stock market crashes, it’s all going down. To truly diversify one needs to invest in various asset classes, such as real estate. Not a REIT, but rather real real estate that has an address. Real real estate is a much more stable asset class. It is much less volatile than the stock market. It also allows for much better wealth growth over time because of control and significant tax advantages.
Are there tax advantages to commercial real estate investing? Commercial real estate kicks off significant depreciation to offset taxes. Dr. Cobb became serious about real estate investing in 2019 and has not paid significant taxes since, due to depreciation. Through the use of cost segregation, commercial real estate can result in bonus depreciation of approximately 30-90% of your investment amount in the year of purchase. President Trump brought back 100% bonus depreciation in 2025. Many people believe this will stimulate the economy and the real estate market.
How can commercial real estate investments be structured for maximum tax efficiency? One of the major advantages of investing in commercial real estate properties is the ability to take advantage of various tax benefits. For example, commercial real estate investors can deduct a range of expenses related to their property, including mortgage interest, property taxes, insurance, repairs, and maintenance. In addition, commercial real estate investors can also take advantage of cost segregation, a tax planning strategy that allows them to accelerate depreciation and reduce their taxable income. Cost segregation involves separating a property’s assets into different categories based on their useful life and applying accelerated depreciation to the shorter-lived assets. This can result in significant tax savings for commercial real estate investors.
What are some of the other advantages of commercial real estate investing? Appreciation of commercial real estate property can be dramatic in times with significant inflation. While cash and cash equivalent investments are being depleted by inflation, the commercial real estate investor is experiencing significant growth. Leverage can be an extreme multiplier for the real estate investor. For example, if you buy a 10-million-dollar apartment complex for 3 or 4 million down and finance the other 60-70%. Even though you didn’t pay 10 million dollars out of your pocket but rather the bank covered 60-70% of the property, you still get all of the profits and depreciation on the 10-million-dollar purchase.
Why would I want to trust a real estate syndicator? I have a financial advisor. Syndicators of real estate are general partners that do the work and bring the deal. They get paid after the limited partners who bring the money. Syndicators are incentivized and motivated to make the limited partners money, because until the limited partners are paid, they don’t get to share any of the profit.
I’m new to real estate. How do I get started? Spend as much time as possible looking at opportunities. The more deals you vet, the faster you will get comfortable sorting out which deals are right for you. Give us a call – we are happy to expedite your journey and extend advice on how to break through the glass ceiling that all investors have to deal with
If these deals are so great, why open them to outside investors? Trust 2 Capital’s partners with investors, we can access larger, higher-quality opportunities. This collaborative model not only strengthens our ability to secure top-tier properties but also creates a pathway for better returns for everyone involved.