FAQ
Frequently Asked Questions
You can get started as an investor with us by clicking here: https://vecnocapital.investnext.com/
The entire account creation and investment process are completed online via the Vecno Capital Investor Portal. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.
We underwrite, tour, and make offers on dozens of investment properties before we are awarded one that fits our buying criteria.
We want to, at least, be able to deliver an 70%-100% return for our investors’ money over a five-year period. This means that if an investor places $100,000 in one of our deals, we want to return their initial capital plus another $70,000-$100,000. Our goal is to double your money in five years or less.
During ownership, we also want to be able to produce 6%-10% cash on cash return, paid monthly or quarterly. This means that on a $100,000 investment, at an 8% annual cash on cash return, you would get paid $8,000 per year or $2,000 per quarterly.
After closing, we send a Monthly Operational Snapshot email and Quarterly Financial Reports. Distributions are sent either monthly or quarterly via ACH or check based on your preference.
The Vecno Capital Investor Portal allows our investors 24/7 secure access to documents, historical returns, and more.
You can always contact us at any time for specific questions or schedule a tour of the property.
No. Real estate is inherently a long-term, illiquid investment. We typically underwrite with a minimum of a 5-year hold period on our properties. However, we may also refinance and return 50%-100% of the investor’s capital within 36 months.
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
No. We typically issue 506(b) offerings, where we are allowed to have up to 35 non-accredited investors on a deal. However, we must have a pre-existing and substantive relationship with that investor.
As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions, and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
Our goal is to finalize all K-1s by March 31st, however, we do rely on outside reporting and may require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state, and local tax returns.
Yes. Investors are able to invest through a Limited Liability Company, Limited Partnership, or Trusts. For more information feel free to contact us.
Yes, we can accept investments made through a self-directed IRA, Solo-K, and any other self-directed retirement account. For more information feel free to contact us.
Absolutely. Once you have applied to be an investor, we’ll schedule a short introductory call with you to learn about your investing goals. Once we’ve gotten to know you, we’d be happy to connect you with our existing investors.