Frequently Asked Questions

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As a partner in the LLC that acquires the properties, you will receive a K-1 tax form. The K-1 provides detailed information on your share of the LLC’s taxable income, gains, losses, deductions, and credits. Since partnerships themselves are generally not subject to federal or state income tax, the K-1 is issued to each investor to report their portion of the partnership’s financial activity. K-1s are provided annually, allowing investors to include the relevant amounts on their individual tax returns.

An accredited investor, as defined for natural persons, includes anyone who:

• Earned over $200,000 annually (or $300,000 with a spouse) in each of the past two years and reasonably expects the same for the current year, OR
• Has a net worth exceeding $1 million, either individually or with a spouse, excluding the value of their primary residence.

Entities, including banks, partnerships, corporations, nonprofits, and trusts, may also qualify as accredited investors. Relevant entities include:

• A trust with total assets exceeding $5 million, not formed solely to purchase the subject securities, and whose purchases are directed by a sophisticated person, or
• Any entity where all equity owners are accredited investors.

A "sophisticated person" is someone with sufficient financial and business knowledge to evaluate the risks and merits of an investment, or an individual whom the company or fund offering the securities reasonably believes has this level of expertise.

Distributions are scheduled on a monthly or quarterly basis.

A Sophisticated Investor does not meet the criteria of an Accredited Investor, but possesses significant investment experience. This typically means the individual believes they have the knowledge and expertise in financial and business matters to assess the risks and merits of a potential investment.  We also need to have a preexisting relationship prior to investing together. 

Investor funds are used to cover the total acquisition cost of the property, including the down payment, acquisition fees, legal and transaction costs, capital improvements, and reserves. These funds are strategically allocated to facilitate the purchase, ensure a smooth transaction, enhance the property's value through necessary improvements, and maintain a financial cushion for unforeseen expenses or operational needs, all aimed at maximizing the investment's long-term performance and stability.

Absolutely! Investors are welcome to visit the property both before investing and throughout the duration of the project. With prior notice, we’ll be happy to personally give you a tour, address any questions, and provide updates on the progress.