FREQUENTLY ASKED QUESTIONS

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Investing is simple. Prospective investors receive an Offering Memorandum which details the target property, the market the asset is in, and projected returns. Investors complete the investment documents and contribute capital. Profit checks and investment updates are delivered to investors each quarter.

You can utilize your personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations,  S Corporations) and IRA’s as explained in the next question 

Yes, you can roll funds into a self-directed IRA or self-directed 401(k) plan and use them to invest in real estate.

Yes, we work with both accredited and sophisticated investors. Accreditation is determined by property  and the type of investor will have access to that specific investment. 

An accredited investor is anyone with an earned income that exceeds $200,000 (or $300,000 together with a spouse) OR has a combined net worth over $1 million (excluding the value of the primary residence).

A sophisticated investor is a classification of investor indicating someone who has sufficient capital and experience to engage in advanced types of investment opportunities.

Investor funds are used for the total acquisition cost of the property. This includes but is not limited to the actual purchase price of the property, acquisition fees, legal and transaction costs, capital projects, and reserves.

Investment windows are generally 5 to 8 years. This window provides enough time to improve and stabilize the property, benefit from market changes, and exit for a healthy return. 5-8 years are projections; however, there may be times where we can complete the project in less time.

Currently, investment minimums range from $50,000 to $1,000,000 depending on the needs for a particular project.

 Investors typically receive profit distributions on a quarterly basis once all the financials are finalized at the end of each quarter.

Investors receive pass-through tax benefits, which means that all distributions flow to each investor. Investors also benefit from the depreciation deduction for real estate, which reduces taxable income. Investors receive a Schedule K-1 each year which includes a report of each investor’s share of profits, losses, deductions, and credits to include in their tax returns.