Am I an accredited investor?
Definition of an accredited investor, in the context of a natural person, includes anyone who:
- Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and expects the same for the current year, OR
- Has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
- On the income questionnaire, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.
- To note, entities such as banks, partnerships, corporations, nonprofits, and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
- Any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
- Any entity in which all of the equity owners are accredited investors.
By this definition, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
Do I have to be an accredited investor to invest?
Yes. Our offerings under Regulation D Rule 506(c) are available to accredited investors only.
What type of accounts can I invest through?
We currently support personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations).
Can I invest through my IRA?
Yes, it needs to be self directed, you can use it as long as you are the custodian which means you can self direct into a regulation D fund.
What is a K-1?
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.
Can I add funds after my initial investment?
Yes, you can – depending on where we are with each phase of our fund, additional funds may be added to your initial investments.
Can I invest if I live in another state?
Yes, as long as someone approves that you are not an alien. You have to have a US bank account and US tax ID if you are outside of the country. Note, an ITIN is not sufficient. Every investor will need a Tax ID to allow for them to complete their tax returns in the US.
When should you expect your first distribution?
If we close the deal in Jan, you should expect your first return sometime in March. It should take approximately 45 days to settle out closing, and we should be distributing cash flow to each investors.
What’s the difference between this and a REIT?
Everything. We never invest in REIT. The benefit of Real estate is hard asset. REIT is a piece of paper and not backed by anything but promises. You are invested with us as an investor and you will get every benefit as a real estate investor.