MLG Private Fund VI
With an investor-centric fund structure, accredited investors can invest their money in Private Fund VI with confidence. Our fund targets diversification, prioritized cash flow, low leverage, and acquires property through our dual-sourcing strategy.
Invest Today Learn about Real Estate InvestingKey Differentiators of MLG’s Private Funds
Our Private Real Estate Funds provide access to investment opportunities that aim to produce generous, tax-advantaged cash flow and appreciation over time to grow our investors’ wealth. These opportunities are thoroughly reviewed and vetted by our team and through the lens of our 36+ years of experience.
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Real Estate Diversification
Private real estate funds have historically had a relatively low correlation to the volatility of public markets.
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Low Leverage & Tax Efficiency
We manage leverage by targeting debt of approximately 65% of all-in costs for acquisitions. Income from investments in private real estate can be considered tax-advantaged, depending on your personal tax situation.
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Hedge Against Inflation
Short term leases in multifamily and other asset classes creates the ability to move rents with inflation.
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Cash Flow & Appreciation
Real estate takes time. The time spent building a real estate portfolio is rewarded by producing cash flow and appreciation over time through the execution of business plans to improve asset cash flow.
Private Fund Investment Model
The Private Fund investment model is structured to put our investors returns first and provide passive income. 100% of available distributions are paid to investors. MLG targets an 11-15% pre-tax IRR in a tiered structure as follows5:
- TIER ONE 8 % Cumulative Preferred Return on Invested Equity
- TIER TWO 100 % Return of Original Principal Invested after the 8% Preferred Return
- TIER THREE 70% / 30% Profit Sharing Split of Remaining Cash Flow Distributions after return of original principal
- 11 -15% Targeted IRR Pre-Tax Return
- Quarterly Distributions Paid
- 1.25 % Asset Management Fee on Invested Capital
Historical Performance
Private Real Estate vs. Public Markets
See below for a comparison of the S&P 500 (public equities index), IYR ETF (public REIT index), and NCREIF (private real estate) over the last 20+ years. Alternative investments, such as private real estate funds have performed steadily relative to the volatility of the public markets.
Source: Yahoo Finance | NCREIF
How We Acquire Real Estate
MLG has developed a dual-sourcing deal flow strategy to create opportunities regardless of market cycle. Historically, MLG has been able to source ±100 transactions per month, giving us the ability to be highly selective in our review process. We target 1-2 real estate acquisitions per month, on average.
Joint Venture (JV)
We have established numerous partnerships across the nation from which we seek real estate investment opportunities, allowing us to capitalize on local knowledge and relationships to find deals. The joint venture acquisition strategy is focused on finding real estate in positive economic markets with job and population growth.
Key Relationships: Foster relationships with local real estate partners.
Diversity: By geographic, asset type and partner/sponsor.
Deal Flow: Critical selection of the smartest investments possible.
Direct Acquisitions
This acquisition strategy falls within target asset classes (i.e., apartments, industrial, retail and office) and includes states where MLG is located, or a state where we have long-established and historical relationships.
35+ Years Experience: Acquisitions and relationships are time tested and proven.
Local Staff: Ability to manage with “boots on the ground.”
Reach: Owning and operating multiple properties within a given MSA.
Targeting High-Value Opportunities for Investors
Our acquisitions team reviews ±100 real estate investment opportunities, on average, in any given month. We’re focused on smart, critical selection of real estate. We make the right deals at the right time, putting our investors first.
- Operational Efficiencies: Focusing on opportunities that yield returns from improving the operational efficiency of the asset. For example, a property may be managed to occupancy while not focusing on maximizing income.
- Buying Off-Market: Realizing an opportunity to complete a purchase without having to bid against other groups or buyers. MLG strives to establish local real estate relationships with sponsors that have rapport with local owners.
- Capital Investments: Adding value to an asset by investing in capital improvements that improve the underlying value of the asset.
Which Real Estate Fund Option Works for You?
MLG Private Fund VI LLC and MLG Dividend Fund VI LLC (together, the “Fund”) will invest side-by-side in each investment. Each have their respective attributes and have the same overall pre-tax investment objectives. Which one you invest in will depend on your personal financial situation. Learn More.
- Overview
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MLG Private Funds
A continuation of our historic fund model. Investors will realize rental income produced from fund operations. -
MLG Dividend Funds
A great opportunity for a retirement account (IRA, 401k, etc.), Foundation and Endowment investors seeking dividend income.
- Unrelated Business Taxable Income
- YES
- NO
- Multi-State Tax Filling
- YES
- NO
- Use Passive Activity Losses
- YES
- NO
- Schedule K-1
- YES
- YES
- Common Income Types
- Capital Gain and Net Rental Income (Loss)
- Capital Gain, Ordinary REIT Dividends
Investment Insights to Keep You Ahead
EXPLORE MORE INSIGHTS-
Investment OptionsREAD MORE
Is Now the Right Time to Invest in Private Real Estate? Insights from Tim Wallen, Principal & CEO
By Timothy Wallen -
Investment OptionsREAD MORE
How Investors are Paid: MLG’s Private Fund Return Structure
The series of MLG Private Funds provides investors with access to investment opportunities that aim to produce tax-advantaged cash flow and appreciation over time. The Funds focus on growing investors’ wealth, capital preservation and diversification within private real estate investment. Understanding how and when returns are sent to investors is perhaps one of the most important elements of any investment structure. Within the private markets, there are a myriad of different structures that may exist. These structures can be frequently misunderstood. Our Funds utilize a “European equity waterfall return structure”. This is specifically designed to be an investor friendly return structure. This demonstrates our firm’s commitment to investors and our confidence in our ability to execute. MLG Private Funds Return Structure: Our latest Fund, Private Fund VI, intends to underwrite potential investments to a target internal rate of return of between 11% and 15% (net of Fund expenses and fees), on a leveraged basis. Each of our funds utilizes a three-tiered return structure. 100% of available distributions are paid to investors as follows1; (Tier 1) 8% cumulative preferred return on invested equity (Tier 2) 100% return of original principal invested, after a full 8% cumulative preferred return is paid (Tier…
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Thought LeadershipREAD MORE
Two Investment Options: MLG Capital Private Fund and MLG Dividend Fund
Author info Everyone loves options in life and when you invest in our Private Real Estate funds, you can choose from two Fund options to best suit your personal objectives. When Private Fund IV launched in 2018, we introduced a new concept, “the Dividend Fund” as we’ve called them, in conjunction with our historic fund offerings. We’re excited to continue offering this dual structure for investors in our latest funds. While both fund options invest in the same underlying assets across each Fund, both fund options present different tax implications to investors. Let’s take a deeper dive. Why two fund options? One of the primary reasons we created the Dividend Fund structure was to better accommodate tax-advantaged accounts (i.e., IRAs, 401(k)s, etc.). Without this structure, investors using these types of accounts could face unnecessary tax due to Unrelated Business Taxable Income. UBTI is generally incurred by tax-exempt investors when participating in private real estate funds (in our case) due to the fund utilizing leverage on fund assets. The Dividend Fund structure aims to eliminate the risk of UBTI for investors using tax-advantaged accounts. What’s the same? Both fund options invest in the same assets regardless of which option you…
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