We can quickly and easily answer all your questions.
You can get started as an investor with Avestix here: https://invest.avestix.com/accounts/register.
The entire account creation and investment process are completed online via the Avestix website. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.
Our funds are offered through Regulation D under the Securities Act of 1933 where only accredited investors are allowed. To be an accredited investor you must have earned income that exceeds $200,000 for each of the past two years (or $300,000 together with a spouse) and reasonably expect to make that income in the current calendar year. Alternatively, you can qualify if you have a net worth over $1 million,
either alone or together with a spouse, excluding the value of your primary residence.
At this stage, we don’t allow non-accredited investors to invest in our funds.
There are several options for types of entities/accounts you can use when investing in our funds. You can invest as an Individual, Jointly, through an LLC (Limited Liability Company), Corporation, Partnership, Retirement Plan/401K, or a Trust.
The current custodian of your existing IRA or 401K will be able to advise you on your ability to self-direct your savings into our funds, which is likely. However, in the event that the answer is no, contact us and we can put you in touch with a custodian that will be able to assist you in investing your retirement funds into alternative assets.
You will be issued a Form K-1 from the LLC that purchases the properties.
A Form K-1 is a tax form used by partnerships to provide investors with detailed information on their share of
a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead, issue a
Form K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions, and credits.
The Form K-1s are provided to investors on an annual basis so that each investor can include Form K-1 amounts on his or her individual
We strive to complete all K-1s by March 31st. Though, as we rely on outside reporting, they may be delayed in order to gather all required information forms in our and provide in our investors ’ best interest.
An accredited investor, in the context of an individual, includes anyone who:
A person must satisfy the thresholds for the prior two years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period. The person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.
In addition, entities such as banks, partnerships, corporations, nonprofits, and trusts may be accredited, investors. Of the entities that would be considered
accredited investors and depending on your circumstances, the following may be relevant to you:
A sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
Realty funds are typically 10 years but can be shorter, longer, or even have a perpetual life. In an effort to maximize investments, it is in our sole
discretion to extend or decrease a funds term, however, it is our goal to stay invested in properties long-term to fully capture appreciation from rising rents and inflation. When a change to the expected time frame occurs it is typically either to avoid selling when the market is down or to take advantage
of selling when the market is up. These decisions are always made strategically, with our investors’ interest in mind.
The distribution will be paid at the end of the first quarter after the funds have been secured against an asset.
Low- to mid-teens equity returns over the life of investment on an annualized basis are our target. That said, we may target higher or lower returns depending on each unique investment. If, for example, we see an opportunity to maximize gains on the sale of a property long-term by forgoing shorter-term distributions to make improvements to a property, we would do that.
Though we approach all our activities strategically, all investments involve risk and targets are only a goal. Realized returns may be higher but can also be lower and can even result in a complete loss.
We typically pay distributions quarterly but may change the frequency at our sole discretion during the term of the fund.
Global events like Covid, for example, as well as other factors beyond our control can impact the distribution of dividends. It will
all depend on the type of property, the market, and other conditions explained in detail in the offer document.
Our fee structure is significantly lower than many other real estate investment managers.
We charge asset management fees based on the fund’s equity, transaction fees based on the acquisition and
disposition of properties for running the fund, and a management performance fee based on the performance of the investment.
There are no hidden fees or other miscellaneous fees, such as financing fees or loan guarantee fees.
Yes! We believe in our investments and we don’t expect you to put your money where we wouldn’t put our own. We are highly engaged owners, with our investment professionals buying into every single deal we do.
All investments involve risk. There are numerous factors outside of our control that can impact any
fund’s performance. Our target returns are a guidepost, not a guarantee.
That said, we have found private real estate to typically be less risky than many other types of investments. Private real estate has historically been less volatile than the stock market, and properties generally appreciate over time as inflation pushes rents up. Additionally, we conduct extensive research and due diligence
on every property and have a high degree of conviction that our risk is balanced with our targeted returns.