FREQUENTLY ASKED QUESTIONS
Am I an accredited investor?
Accredited investors, as defined by the SEC, are those who meet the criteria to participate in certain private capital market deals. Generally, an individual person is considered an accredited investor if you meet one of the following requirements:
- You have a pre-tax income exceeding $200,000 annually for the past two years ($300,000 jointly with a spouse or spousal equivalent) with the expectation of that continuing in the next year.
- You have a net worth of more than $1,000,000, either alone or with a spouse or spousal equivalent, excluding the value of the primary residence.
- You hold certain professional certifications, designations, and licenses that are active and in good standing. This is usually Series 7, Series 82, and Series 65 holders.
Am I eligible to invest?
If you are an accredited investor whose primary residence is within the United States, yes – you are eligible to invest in this Fund.
Are investments guaranteed?
Investments are NOT guaranteed. Moreover, real estate investments are highly illiquid because of long hold periods, and investors should only commit an amount that they are comfortable with potentially losing.
What are the risks associated with investing in a real estate syndication and how are the risks mitigated?
One significant risk in real estate investing arises from potential shifts in interest-rate policies by the Federal Reserve, which could elevate capital costs. We proactively mitigate this by ensuring our deals possess a substantial cash flow safety margin to cushion against rising interest rates. Moreover, we opt for fixed-rate loans over floating rates. Furthermore, we uphold a robust cash reserve equivalent to 18 months of our operational expenditure to navigate unforeseen challenges.
What's the difference between investing in a Syndication vs. investing in a REIT?
Syndication investments are targeted, private ventures shielded from the volatility of public market fluctuations, whereas REITs are publicly traded entities, making them more susceptible to market volatility.
How does my involvement as a limited partner impact my liability?
Every asset is safeguarded within its individual LLC (Limited Liability Company). This structure confines potential liabilities and litigations strictly to that specific asset. Just like lenders, limited partner (LP) investors aren’t deemed as operators, thus they’re insulated from liabilities stemming from operational setbacks.
When do distributions begin and how frequent are they?
Cash distributions commence once the associated asset achieves stability, typically after 12 months. The return of capital is initiated during a significant refinancing event or upon sale, usually between 3 to 5 years.
What are the minimum investment requirements for participating in this opportunity?
The minimum investment threshold stands at $40,000.
Can I invest through my self-directed IRA or 401(k)?
Absolutely, investments can be channeled through your 401(k) or IRA. If desired, our trusted partners at Syndication Pro and Equity Trust can assist in setting up a self-directed IRA, guiding you throughout the process.
What types of regular communication should I expect?
Investors can anticipate monthly email updates detailing the progress of fund projects. Additionally, investors can access and monitor their accounts anytime via the Syndication Pro portal.