Frequently asked questions
What is a K-1?
As a partner in the LLC acquiring the properties, you will receive a K-1. This tax form provides detailed information on your share of the partnership's taxable income, gains, losses, deductions, and credits. K-1s are issued annually to enable investors to report their share of partnership income on their tax returns.
Am I an accredited investor?
An accredited investor meets specific income or net worth criteria outlined by the Securities and Exchange Commission (SEC). For individuals, this typically involves having earned income exceeding $200,000 (or $300,000 jointly with a spouse) in the past two years, with an expectation of similar earnings in the current year, or possessing a net worth exceeding $1 million, excluding their primary residence. Various entities may also qualify as accredited investors.
What is a sophisticated investor?
A sophisticated investor, while not meeting the stringent criteria of an accredited investor, possesses significant financial and investment experience, enabling them to evaluate investment opportunities effectively.
How frequently are distributions made?
Distributions are made quarterly, generally starting the third quarter after acquisition.
What are the funds used for?
Investor funds cover the total acquisition cost of the property, including the down payment, acquisition fees, legal expenses, capital improvements, and reserves.
Can I visit the property?
Certainly! Investors are welcome to visit the property both before investing and during the project's lifespan. With sufficient notice, our team will facilitate a tour and address any inquiries you may have.
