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If you have any further questions, please visit our Contact Us page.
1) Why is the minimum investment $400,000?
It is a somewhat arbitrary figure that we felt would begin to make the deal worth our investment of time and money. In order to have the kind of returns we look for, any potential property must meet specific qualifications. A $400,000 minimum investment allows the acquisition of a property with a total value of $2,000,000, and an income of $200,000 annually. Your share of that investment would then deliver you an annual income of $40,000 plus equity appreciation.
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2) Can I pool money together with other partners to come up with the minimum investment?
Yes. You can get together with friends, family, or whomever you like to reach the minimum investment amount of $400,000. Your group will own a collective 20%. Eventually we may provide this type of service, but for now it is up to you.
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3) Are my funds FDIC or SPIC insured?
No. FDIC insurance is for savings accounts smaller than $100,000 held at banks. SPIC insurance is for funds held at brokerages. It insures your funds against the brokerage going bankrupt, but does not insure the value of your investments.
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4) Why would I rather invest in one of the properties that you already own, instead of acquiring another property?
The main difference between the two types of property is speed of purchase. To buy a new property will take several months from beginning the search to closing the escrow. If you are buying part of a property that we already own, you will start receiving income immediately. If we have a property available that fits the amount you are looking to invest, that would usually be your best option.
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A REIT or Real Estate Investment Trust is a larger, publicly traded version of our Partnership Program. Some benefits of our program include:
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You will be a part owner of a specific building, as opposed to a shareholder in a company that owns many buildings. |
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You will not have to pay any fund management fees. |
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Due to the nature of investors, REITs are more volatile than the underlying market. You can hold on to your investment with us and collect rents through any underlying market trend. |
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6) Why do I need to come up with the money before entering escrow?
We do not want to get in the situation where you, the investor, are unable to perform financially at the last minute. Your money will still be fully refundable during escrow, minus expenses, in case you change your mind. Escrow expenses will be paid by us in all other transactions.
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