Frequently Asked Questions

No. Real estate investments are generally long-term and illiquid, and investors should be prepared to hold their investment for the full projected investment period, which is typically between 5 and 10 years, depending on the specific investment.

In some cases, the business plan may include the possibility of refinancing the property, which could allow for a partial return of investor capital. However, the timing and amount of any such return may vary and are not guaranteed.

In the United States, to be considered an accredited investor, one must have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have an income of at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.

The term “accredited investor” is defined in Rule 501 of Regulation D of the U.S Securities and Exchange Commission (SEC) as:

• a bank, insurance company, registered investment company, business development company, or small business investment company;
• an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
• a charitable organization, corporation, or partnership with assets exceeding $5 million;
• a director, executive officer, or general partner of the company selling the securities;
• a business in which all the equity owners are accredited, investors;
• a natural person who has an individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, or has assets under management of $1 million or above, excluding the value of the individual’s primary residence;
• a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year
• a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
• a natural person who has certain professional certifications, designations or credentials, or other credentials issued by an accredited educational institution, which the Commission may designate from time to time. Presently holders in good standing of the Series 7, Series 65, and Series 82 licenses.
• natural persons who are “knowledgeable employees” of a fund with respect to private investments.
• limited liability companies with $5 million in assets may be accredited investors.
• SEC- and state-registered investment advisers, exempt reporting advisers, and rural business investment companies (RBICs) may qualify.
• Indian tribes, governmental bodies, funds, and entities organized under the laws of foreign countries, that own “investments,” as defined in Rule 2a51-1(b) under the Investment Company Act, in excess of $5 million and that was not formed for the specific purpose of investing in the securities offered.
• Family offices with at least $5 million in assets under management and their “family clients,” as each term is defined under the Investment Advisers Act.
• “Spousal equivalent” to the accredited investor definition, so that spousal equivalents may pool their finances for the purpose of qualifying as accredited investors.

Source:
https://www.investor.gov/system/files/news/documents/english/ib_accreditedinvestors.pdf

Not necessarily. Some of our investment opportunities may be structured under Rule 506(b) of Regulation D, which may allow participation by a limited number of non-accredited investors, provided certain regulatory requirements are met.

Participation in these opportunities generally requires that we have a pre-existing and substantive relationship with the investor, and all investors must meet the suitability requirements for the specific offering.

As an investor in the LLC that owns the property, you will generally receive a Schedule K-1. A K-1 is a tax form used by partnerships to report each investor’s share of the partnership’s income, gains, losses, deductions, and credits for tax purposes.

K-1 forms are typically issued annually so investors can include the information when preparing their tax returns. Our goal is to provide K-1s by March 31 when possible; however, timing may vary because we rely on third-party accounting and reporting. As a result, investors may occasionally need to file a tax extension.

Yes. Investments may be made through entities such as a Limited Liability Company (LLC), Limited Partnership (LP), or a Trust, depending on the specific offering and investor eligibility. Please contact our team if you have questions about investing through an entity.

In some cases, investments may be made through self-directed retirement accounts such as a Self-Directed IRA or Solo 401(k). Investors should consult with their custodian and tax advisor to determine eligibility and suitability. For more information, feel free to contact us.

Absolutely. After completing the investor onboarding process and establishing a relationship with our team, we may be able to introduce you to existing investors who are willing to share their experience.