Questions careful investors ask
Answered straight.
What do you earn, and when?
PENDING FROM INVESTO: fees and the profit split in one plain paragraph, from the operating agreement.
In what order does money come back?
PENDING FROM INVESTO: is investor capital returned before the owners' profit share, and is there a preferred return?
Can I take my money out early?
No. There's no market to sell your share until the building sells. Only invest money you won't need for the whole hold.
What happens if a deal fails?
You can lose part or all of what you invested. Ask us on the call about the deals that didn't go to plan and what investors were told.
Who else is in this?
The two owners, with their own money, and other accredited investors. Ask us how many are in the open deal.
Who runs the building day to day?
A professional third-party operator handles leasing and upkeep. We own it, oversee it, report on it and make the big decisions.
How and when are distributions paid?
Typically quarterly, from the building's net operating income: rent in, expenses out. When the building sells or refinances, you receive your share of the proceeds. Distributions are not guaranteed.
What tax documents will I get?
A Schedule K-1 every year. Depreciation can offset part of the cash flow on paper. Ask your CPA how it applies to you.
Can I invest from a self-directed IRA or old 401(k)?
Often, yes. Check that your custodian allows private real estate, then ask us on the call.
Who counts as accredited?
Generally, income over $200,000 ($300,000 with a spouse) in each of the last two years, or net worth over $1 million excluding your home, or a Series 7, 65 or 82 license in good standing.
