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First National Realty Partners: Invest or Avoid?

By Jamie Richardson | September 30, 2022

Accredited investors have many different options to choose from once they decide to invest in real estate. Some opportunities are commercial; others are residential, and some may be a mixture of both property types. First National Realty Partners is a real estate private equity firm that allows accredited investors to invest in various commercial properties. Requiring a relatively minimal investment and offering a seven-year record of success, FNRP may be worth considering for those looking to diversify their portfolio without personally acquiring real estate.

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What is an Accredited Investor?

There are certain qualifications a person (or persons) must meet before they’re considered to be an “accredited investor.” You’re considered an accredited investor if you meet one or more of the following criteria:

  • Your net worth exceeds $1,000,000 USD. This net worth cannot include your primary residence.
  • Your annual income exceeds $200,000 USD. This must be true for the past two years, and your expected future annual income must also exceed this amount.
  • You & your spouse’s joint income exceeds $300,000 USD. The same conditions as individual annual income apply.

You can invest with FNRP as long as you’re an accredited investor. If not, you will not be eligible. However, there are many other real estate investment opportunities you can pursue instead.

Investment Opportunities With First National Realty Partners

FNRP currently holds over $900M in retail commercial real estate properties. These properties are rented to well-known, reliable tenants who pose little risk of running out on their financial responsibilities. FNRP often rents properties to grocery chains like Publix, Whole Foods, and Kroger. Other noteworthy tenants include McDonald’s and Lowe’s. By catering to these and similar businesses, FNRP has managed to routinely turn a profit (both for the company and for its investors) on their commercial properties.

Historical Performance

First National Realty Partners is known for offering consistent results. Annual returns average 12-18%, which outpaces the 10% return generally expected from the stock market. These returns are in line with FNRP’s own return goals, which vary from 12-18% depending on the specific property. Investors generally expect to receive an 8% annual cash distribution, providing them with consistent income throughout the duration of their investment.

FNRP Offerings

Investors can choose to invest in either a Limited Partnership or an Opportunity Fund. Limited Partnerships allow one to invest on a project-by-project basis, whereas the Opportunity Fund provides fractional shares of the FNRP portfolio. It’s possible to instantly diversify your portfolio using the Opportunity Fund, but you’ll need to be able to invest a minimum of $50,000 into the Fund. While it is possible to lose money using either of these approaches, both arelikely to become successful investments.

Limitations

To invest in First National Realty Partners, one must be an Accredited Investor. Beyond that, you must also have a minimum of $50,000 to invest. You can invest more, but each new deal you enter will require at least $50,000. These investments can be funded through wire transfers or by check. In the event that a deal falls through, FNRP will return your money.

It’s critical to remember that FNRP offers long-term investments. Although some deals may offer a certain extent of liquidity, most will not. When investing, you should be prepared to hold for five or more years. The specifics of each arrangement will vary by property, which makes checking the terms and conditions of each investment a necessity.

The Benefits of FNRP

While there are certain limitations you’ll run into, these are fairly standard when dealing with real estate investments. Opting for investing with FNRP specifically does offer certain advantages though, which may give it an edge over alternative options. These include:

  • High standards - Out of every 1,000 investment properties FNRP considers, the firm only invests in one (on average). This means every property has been thoroughly vetted and deemed profitable by the in-house team, even before the opportunity was presented to investors.
  • Processes are handled internally - Unlike other companies that often outsource tasks, FNRP handles everything—from property acquisition to real-estate management—in-house. This enables them to close profitable deals efficiently with industry-leading companies.
  • Support - In addition to having access to routine meetings and webinars, investors can also refer to a dedicated team of investment specialists with any questions or concerns they may have.

Summary

For accredited investors who want to invest in real estate without becoming a landlord, investing with First National Realty Partners poses a lucrative opportunity for many. However, there are still some limitations that must be taken into consideration before any commitments are made. Like many other real estate investments, investing with FNRP requires one to be prepared for long holding periods (often exceeding five years). Liquidity should not be expected, and it’s even possible to lose money during that time. That said, the firm’s historical performance is quite impressive, so we’d expect to see generally positive performance from any investments you do make. If you’re an accredited investor who’s ready to get some “skin in the game” in real estate, there’s no better time to start than now. Sign up for FNRP by clicking here!

Jamie is a 5-year freelance writer who enjoys real estate. He is currently a Realty Biz News Contributor.
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