Frequently Asked Questions

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Top 10 Most Asked Questions

What happens to my investment if Infinity no longer exists?

Since each investment is a direct ownership interest in a limited partnership or other entity, you are still a direct shareholder of the respective project(s) that you have invested in. The biggest impact is that you will manage your investment(s) directly, as Infinity will no longer manage and provide reports and distributions through its platform.

What is return on debt?

It is a metric used to measure credit risk, and is determined by dividing the net income of the property by the total outstanding principal of the debt.

What is debt service coverage ratio?

It is a metric used to measure the cash flow available to pay current debt obligations. It is determined by dividing net property income by total short-term debt service, and is expressed as a percentage. 

What is yield?

It is a metric used to measure the return on investment. It’s calculated using the net profit the property is generating divided by the cost of the project. It is expressed as a percentage. It can also be referred to as property yield.

What is cap rate?

It is a metric called capitalization rate used to measure the return on investment in a real estate property. This measure is calculated using the net profit that the property is generating divided by the market value of the property. It is expressed as a percentage.

Risk: Oversupply

We only work in high growth markets with low vacancy rates. The financial entity also carries out an extensive financial analysis to ensure that the investment has a low-risk profile.

Risk: Lack of execution of construction in expected timing

The construction budgets put in place by the developer include a 3% provision for overrun costs.

How is my investment backed?

Infinity is a Limited Partner in the joint venture that owns each project including both the building and the land. The investment is backed by the real asset itself.

In the contractual documents for subscription of the investment, you can find more information regarding investment guarantees and risks.

Does my investment have any risks?

All investments come with some form of risk. Investment risk can be defined as the probability or likelihood that the investment does not generate the expected return or even the occurrence of losses relative to the expected return on any particular investment. 

Risk and return are tied: the greater the expected return of a product, the more risk we assume. Some investments have a directly proportional relationship between risk and return (1:1). This symmetric relationship means that for every percentage point of risk, there is the same percentage point of return. 

Generally quality real estate investment does not have a symmetric relationship between risk and return because the investment is backed by a tangible asset, in a growing market, making it a more attractive and lower risk investment. 

We consider Infinity’s projects as low risk investments because aside from being backed by the real estate asset, we only invest in projects in selected areas within high-growth US cities.

The following are some examples of risk:

  • Price risk: Variation in the price of the asset over the life of the investment
  • Construction risk: Variation in construction costs making the development less profitable
  • Stabilization risk: Possibility that the time to rent the units will take longer than expected
  • Liquidity risk: Possibility of converting your investment to cash at market value
  • Currency risk: The value of the investments may be affected by changes in exchange rates

A full breakdown and explanation of these risks can be found in the underwriting document as they vary by project.

Who invests through Infinity?
Who are Infinity’s clients?

Infinity has a well-diversified client base from more than 10 countries, including the USA, Spain, Argentina, Mexico, Colombia and Ecuador. Our investor base is represented by adults of all age groups and a variety of professions from family offices to doctors, and engineers to artists.

What is the structure of each project?

Each investment has a direct share in a limited partnership managed by Infinity, which is regulated by the subscription documents applicable to the investment.

If the partnership doesn’t guarantee the mortgage over the asset, who does?

Infinity is a Limited Partner in the joint venture that owns the project. The developer (General Partner) is responsible for the execution of the project, as well as the bank loan. If the General Partner defaults on the bank loan, they are responsible for the debt.

Is it possible to sell my share before the actual sale of the building?

You may offer your intention to sell on Infinity’s platform at an objective price based on the liquidation value of the investment at that moment. However, liquidity and price are not guaranteed. Therefore before you invest, you must assume that you will hold your investment through its projected lifecycle.

When will I receive my distributions?

Distributions are usually deposited on a quarterly basis. The quantity and schedule of the distribution depends on each project’s business plan and results. Investors are notified regarding both upcoming and historical distributions via Infinity’s online platform.

When do I receive updated information on my investment?

Throughout the life of each investment you will receive detailed information at an asset level, including an investment memorandum, due diligence summaries and quarterly reports. Infinity also conducts annual external audits of each property. The investor relations team is also available to answer additional questions and clarify reports.

How do I invest through Infinity?
  1. Indicate your intention to invest
  2. Define your financial goals with our team
  3. Invest in the projects you are interested in
  4. Become a shareholder in the properties you invest
  5. Receive quarterly updates and, according to the business plan, cash distributions
What is the minimum I can invest?

The minimum investment varies by project, but in most cases starts at $100,000.

How does volatility affect my investment?

Every investor faces volatility. However, real estate can have a differentiated investment strategy that helps protect your portfolio from volatility.

Because of their nature, real estate investments have longer holding terms of at least three years on average. Real estate values fluctuate during economic cycles, but always hold an upward trend over time. The probability of obtaining a higher return increases when we put time on our side.

How does the raise in federal interest rates affect me?

The raise in interest rates may affect the volume of loans for real estate, because it implies greater debt repayments and reduces properties’ cash flow. However, the steady growth in rental rates in many markets may offset the impact of interest rates rises in cash flows coming from multifamily assets. To learn more, click here.

What are my guarantees?

If you invest through a promissory note, Infinity guarantees the interest payment and capital is endorsed by the equity of the building.

How is each investment legally structured?

Infinity structures each building as an independent entity following Regulation D and Regulation S of the SEC 506(c) offering, of which investors can become limited partner shareholders.

What does investing through Infinity offer me?

Infinity’s team carefully vets prospective private equity investments through their market know-how and expertise. The team manages the full lifecycle of your investment, providing you with a completely passive source of income.

Investors are always informed on how their money is working for them via quarterly updates and potential cash distributions.

What is a multifamily building?

A multifamily building is one where the vertical or horizontal construction is divided into units of apartments that share the land as a common asset. Compared to the classic apartment building with many home-owners, a multifamily building has only one owner who manages the entire building.

Who manages the building's development?

Infinity’s team invests in projects with highly seasoned real estate developers. The developers are in charge of managing professionals throughout each step of the process: 

  • Financial structuring: Infinity
  • Construction: a local, qualified general contractor
  • Rental and admin: a specialized building administration company
  • Sale: an investment bank or specialized brokers
What return rate can be obtained by investing with Infinity?

Every project offers unique return rates. While it's difficult to generalize, the average internal rate of return (IRR) should always be above 20%.

What is stabilization?

A stabilized real estate asset is a property in which construction or renovation has been completed, it has reached a certain occupancy rate (at Infinity, this means 95% of total units over a 6-month period), and it achieves a strong net operating income that can support debt service.

In what time frame is a project usually sold?

Generally, development takes around 18 months. We add an additional 18 months for building stabilization and sale.

In what areas does Infinity invest?

Infinity only invests in the United States, as macroeconomic and political conditions are favorable. In addition, the investment team has unique access to projects which are usually reserved only for professional investors.

Infinity focuses on investing in the 20 largest cities by metropolitan statistical area (MSA), where there's favorable demographic, employment, and wage growth. Within each MSA, Infinity looks for neighborhoods with high employment and salary conditions.

How many projects has Infinity financed?

Infinity has invested in over 9 projects over the last 12 months, with a total investment of $508 million and a projected annual return rate of 20%. So far, its investments are located in Las Vegas, New York, Portland, Lacey, Phoenix and St. Louis.

Where is Infinity located?

It is located in Miami but has employees based in Los Angeles, Buenos Aires, Valencia, Madrid, and Quito.

Who makes part of Infinity’s investment committee?

Infinity’s investment committee led by the Chief Executive Officer and Chief Investment Officer, who are US real estate experts that have invested over $6B in projects. The committee members include two independent advisors with extensive experience in finance and real estate.

When was Infinity founded?

Infinity was founded in 2021, and is a spin-off from a family office with more than 10 years of experience, with a mission to democratize access to exclusive projects. In just one year Infinity has invested in 9 projects with a total cost over $508m, representing 300 investors in 10 countries including USA, Spain, Argentina, Mexico, Colombia and Ecuador.

How many investors does Infinity have?

Infinity currently has over 300 investors in 10 countries.