• You can expect to come across institutional‑quality apartment or multifamily offerings with the following overarching characteristics.

  • Asset profile: Suburban garden or low‑/mid‑rise apartment communities (typically ~150–400 units), generally 2000–2020 vintage.
  • Business plan: Practical, targeted refresh of interiors and exteriors (~$5,000–$7,500 per unit) to support roughly $50–$100/month rent lift, plus operating improvements (renewal pricing, faster turns, expense control, and energy/systems upgrades). 
  • Market fit: Job and population growth with employer diversity and supply‑constrained suburban submarkets where rents are supported by wages and replacement costs. We also focus on “attainable” housing^* communities and generally avoid regions with outsized regulatory or insurance headwinds.
  • Capital structure: Primarily fixed‑rate agency debt at 60–70% LTV, sized to ≥1.25× DSCR from day one on a fully amortizing basis. We generally do not use floating‑rate loans or interest‑rate caps.
  • Process: We typically acquire with our own capital, stabilize operations, and then open the investment to individual investors, providing greater visibility on potential performance.
  
  
  To learn more about our investment strategy and asset focus, you can read Steadfast Direct’s Investment Thesis here.
  
  * Attainable housing refers to apartments designed for middle-income households earning 80-120% of the Area Median Income (AMI). Attainable housing aims to create a stable workforce and stronger communities by ensuring that people who work in a community can afford to live there.

• Durable demand: Steady job and population growth with employer diversity.
• Practical affordability: Rental affordability for middle-income households. a clear replacement-cost gap, meaning, where buying and upgrading makes more financial sense than building new.
• Manageable supply: New construction and renter demand move in step with each other, preventing a glut of empty units and protecting occupancy.
• Workable operating climate: property-tax and insurance environments that support the business plan, and local regulations that allow professional property management and timely lease enforcement.
• Our operator footprint: within or adjacent to where our teams already manage for execution support

We generally avoid overbuilt urban cores and locations with outsized regulatory or insurance volatility.
We’re generally leaning into parts of Texas, the Southeast, and Mountain states (select submarkets), and we’re cautious on overbuilt urban cores, coastal Florida/SE (insurance volatility), and high-regulation West Coast markets.

For the full rationale and current target areas, see the Steadfast Direct Investment Thesis.

Yes. Steadfast and its principals typically invest 10–20% of the total equity in each offering. In select cases, we acquire with Steadfast capital first (“warehouse”), stabilize initial operations, and then open the offering to individual investors, so early performance is visible before investors commit their capital.

How the co-investment works: Our capital is at risk alongside yours and participates at the same rate in the same class of equity (except for the sponsor’s performance participation). Distributions are pro rata, and the sponsor promote only engages after investors receive the stated preferred return and return of capital (full details are available in each PPM).

Transparency on economics: We disclose the exact co-investment amount, preferred return, waterfall, and fees on every offering. Fees are market-standard (e.g., acquisition, asset/property management) and are shown so you can see precisely what to expect.

Durability of alignment: Co-investment is funded at close and is expected to remain in place throughout the hold; if market conditions require additional support (e.g., to preserve asset value), Steadfast may add capital alongside investors under the terms set out in the documents.

Many avenues let you access private real estate today, but most are distribution platforms that package their offerings and are less involved in operating them. Steadfast is an owner‑operator first and a distribution channel second. Our edge is practical. We commit our own capital, we run the assets with in‑house teams that have worked across cycles, and we focus on creating value through operational excellence.

In practice, Steadfast Direct’s unique edge shows up in three ways:

1. We invest alongside you from day one. We commit meaningful firm/affiliate capital to each offering. Terms are straightforward; our outcomes are tied to asset performance, not to platform fees.
2. We operate what we buy with in‑house, cycle‑tested teams. Acquisitions, asset and property management, and capex execution sit under one roof. That gives us direct control of the levers that drive Net Operating Income, including pricing, renewals, faster unit turnovers, expense control, and targeted, cost‑controlled upgrades. This ensures plans get executed according to plan.
3. We focus on where America lives. We target attainable-living communities serving middle-income renters in job-growth, supply-constrained submarkets.

Bottom Line: Steadfast Direct’s unique edge is that we invest alongside you with meaningful skin in the game, we operate the assets with our own teams that have decades of operational experience, and focus on suburban and middle-income assets for the potential of steady cash flow across multiple cycles.

We keep the capital stack simple.

Equity: Investors purchase LP/LLC interests in a deal-level entity. Steadfast is the sponsor/manager and a meaningful co-investor. Terms are disclosed per offering (preferred return, a straightforward waterfall, and market-standard fees). We generally underwrite a multi-year hold, provide quarterly reporting, and make distributions when the asset supports them. Any capital-call provisions are spelled out in the documents.

Debt: We primarily use fixed-rate agency loans (Fannie/Freddie) at about 60–75% LTV, sized to ≥1.25× DSCR from day one on a fully amortizing basis. This emphasizes predictable debt service and reduces dependence on refinancing or interest rate fluctuations. If a different structure is a better fit for a specific acquisition, we’ll state the terms and the rationale in that offering’s materials.

We plan for what we can control and build cushions for what we can’t. 

Here’s what that looks like:

• Underwrite for the downside. We cap rent-growth assumptions and run “what-ifs” on vacancy, expenses, and exit values. Plans must work without heroic assumptions and lean towards conservatism.
  
  
• Debt for stability. We primarily use fixed-rate agency loans at moderate leverage (about 60–70% LTV), sized to ≥1.25× DSCR from day one—i.e., income can comfortably cover the debt service. That keeps payments predictable and avoids the need for a refinance to make the plan work. If a different structure better suits a specific deal, we clearly outline it in the offering.
  
  
• Reserves and scoped capex. We fund operating and replacement reserves up front and fully scope capital work. We pilot renovations to confirm costs and rent increases before scaling.
  
  
• Insurance discipline. We competitively bid coverage, right-size deductibles, and invest in risk-reduction (roof, systems, safety). We avoid markets where insurance volatility overwhelms NOI.
  
  
• Taxes and policy tools. We model assessments conservatively and pursue appeals where appropriate. In many markets, attainable-housing communities can qualify for local programs (e.g., abatements/exemptions) that lower expenses in exchange for income/rent commitments.
  
  
  • Example: In Texas, some assets can be structured with a Public Facility Corporation (PFC) partnership that provides up to a 100% property-tax exemption during the compliance term. Our Boerne asset uses a PFC structure; terms and covenants are detailed in the offering documents. Note: Such programs are case-by-case and not universal.
    
    
• Operating control. As an owner-operator, our in-house teams manage the levers that move NOI: rent pricing and renewals, fewer vacant days between residents, expense control, and targeted, cost-controlled upgrades.
  
  
• Flexibility if conditions change. We keep multiple paths to value, which can include => operating for income, renovating where payback is clear, and selling or refinancing when warranted. If needed, we can adjust distributions to protect the asset and communicate with our investors why and what’s next.
  
  

Bottom Line: To mitigate today’s market volatility, we are leaning towards more conservative underwriting assumptions, primarily fixed-rate debt sized to coverage, ample reserves, policy tools where sensible, and day-to-day operating control.

While uncommon, we may temporarily adjust distributions to protect the asset and long-term value. Capital calls are rare but possible; if one is considered, you’ll receive clear, timely communication on the reason, the options, and next steps. Our approach—moderate leverage, a preference for fixed-rate debt sized to coverage, and upfront reserves—helps reduce the likelihood, but we don’t assume it can’t happen. We underwrite risk up front, address challenges directly, and keep investors informed throughout the hold, with our capital invested alongside yours.

The minimum investment is $25,000.

Exact minimums and fees are specified per offering and shown on the offering page and in the PPM. Typical fees include an acquisition fee, an asset-management fee, property-management at market rates, and a performance participation that applies only after investors receive the stated preferred return and return of capital. There are no separate or hidden “platform” fees.

Short answer, not typically via our standard LP interests.

Section 1031 allows tax deferral when you exchange investment real estate for like‑kind real property within strict 45‑day identification and 180‑day closing windows. Interests in a partnership/LLC (what most direct offerings issue) generally do not qualify for 1031 treatment. Investors who must execute a 1031 usually invest through a Tenant‑in‑Common (TIC) or a Delaware Statutory Trust (DST) that holds title to the replacement property. Those vehicles, when available, are structured separately from standard offerings.

If you have 1031 needs, contact us early, we can discuss whether a separate DST/TIC or other solution is available for a specific acquisition, or whether alternatives (e.g., Section 721/“UPREIT” contributions where applicable) could meet your objectives. We don’t provide tax advice. Please consult your advisor for your specific situation.

These are private, illiquid real estate interests with transfer restrictions and no redemption program or public market. You should plan to hold for the full term. 

Steadfast generally underwrites multi-year holds (often ~5 years), but the actual timeline can be shorter or longer, depending on the business plan and market conditions.

Investor liquidity typically comes from a sale or a refinance. Any exceptions (e.g., limited transfer rights or special liquidity features) would be spelled out in the specific offering documents.

You’ll receive quarterly asset and financial updates in the investor portal within 75 days of quarter-end as well as a year‑end Schedule K‑1 for each partnership interest by March 31st. We also provide material notices promptly if something important changes at the property or in the investment.

Steadfast Direct Offerings are intended for accredited investors.

Who can invest: According to the U.S. Securities and Exchange Commission (SEC), you qualify as an accredited investor if any one of the following criteria is true:

1. Income: $200k+ (individual) or $300k+ (joint) in each of the last two years, with a reasonable expectation of the same this year; or

1. Net worth: Over $1M (individually or jointly), excluding your primary residence; or

1. Professional: Hold Series 7, 65, or 82; are a director/executive officer/GP of the issuer; or a “knowledgeable employee” of a private fund; or

1. Entities: Trusts or entities with $5M+ in assets (not formed solely for this investment), family offices with $5M+ AUM (and their family clients), or entities where all owners are accredited.