FREQUENTLY ASKED QUESTIONS
What is the minimum investment amount?
The minimum investment varies but it is typically USD $50,000 to $100,000.
Do I have to be an accredited investor to participate?
We offer securities under U.S. Securities & Exchange Commission SEC Regulations 506(B) and 506(C). Depending on which security is offered, investors will need to be accredited or sophisticated. More information can be found on SEC website here.
For Canadian (Ontario) Investors, according to Ontario Securities Commission (O.S.C.) an accredited investor means an individual with:
— Net income before taxes was more than $200,000 in each of the two most recent calendar years and is expected to be more than $200,000 in the current calendar year
— Net income before taxes combined with a spouse was more than $300,000 in each of the two most recent calendar years and their combined net income is expected to be more than $300,000 in the current calendar year
— Financial assets, alone or with a spouse, of more than $1 million before taxes but net of related liabilities
— Net assets, alone or with a spouse, worth more than $5 million
More info can be found here: https://www.osc.ca/en/securities-law/instruments-rules-policies/4/45-106/summary-key-capital-raising-prospectus-exemptions-ontario
For American Investors, the requirement for an Accredited Investor is below (atleast one of the below):
–has either a net worth of $1 million, not including their primary residence
–OR an annual income of $200,000 (or $300,000 if married) for the last two years and you have a reasonable expectation that it will continue
How do income distributions work?
Part of the appeal of owning real estate is the ongoing cash it generates. As this cash accumulates, the sponsor and/or property management company distributes it to investors. Distributions are typically paid quarterly with some properties cash flowing right away. Other properties that have a larger value add component may take 2-4 quarters for distributions to start. This is referred to as the Cash on Cash return.
Can I use my IRA, 401-K or RRSP to invest?
If you are American, absolutely! IRA’s can be converted to self-directed IRA’s (SDIRA) and old 401-K’s can be converted too. Your current 401-K plan may allow an “ in-service transfer” where you move a portion of the balance into an SDIRA.
If you are Canadian, we currently do not accept registered funds (RRSPs).
Do I have legal liability as a passive investor?
No, passive investors have no legal liability. Passive investors purchase shares in an LLC or LP that owns the property, similar to purchasing stock in a publicly traded company.
How long does my money stay in the investment?
Typical investment timeframes vary based on the investment and market conditions but typically run from 3-6 years. The Sponsor/ General Partnership team (GP) may decide to sell after 2-4 years if the property is meeting the projected returns of our investors.