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
Our Private 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 35+ years of experience.
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Diversification
Private real estate has 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 investment in private real estate can be tax efficient, 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.
Investment Model
The Private Fund investment model is structured to put our investors returns first. 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. Private real estate has performed steadily relative to the volatility in other asset classes.
Source: Yahoo Finance | NCREIF
How We Acquire Property
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 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.
What We Seek
Our acquisitions team reviews ±100 deals, 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 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-
Thought Leadership
January 2024 – Why Invest Now?
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Thought Leadership
Which Fund Option is Best for Me?
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…
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Thought Leadership
Bonus Depreciation: What is it and where is it going?
The contents of this article are not to be considered as tax advice and individuals should consult their own tax advisor as to tax advice. Recipients of the information contained…
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