What is passive investing?
A partnership between a sponsor who handles every aspect of the transaction and the passive investor who funds a portion of the capital needed and shares in the profits.
What is a Private Placement Memorandum (PPM)?
A PPM is used in “private” transactions when the securities are not registered under applicable federal or state law, but rather sold using one of the exemptions from registration. The Private Placement Memorandum while not required by the SEC, it is highly recommended, and describes the actual offering, risks, includes the partnership agreement, investment summary and subscription agreement. It is a lengthy legal document prepared by a syndication attorney. The subscription agreement section includes basic information as to amounts being purchased and percent ownership. The risk section highlights many of the possible risks involved.
What are your return projections and how are they calculated?
Annual return projections are based on the volume of capital contributed, ranging from 13% to 17% of the funds applied. See the private placement memorandum (PPM) and deal disclosure for additional information.
When will I get my original investment back and what is the expected hold period?
The minimum hold period is 12 months from the day that the capital is received in the fund’s bank account. Once the initial term has elapsed, you are welcome to withdraw the funds by providing a one quarter notice.
What is the minimum investment?
The minimum investment amount is $25,000 for new investors and $5,000 for existing investors.
When and how will I get paid?
Investors will receive quarterly distributions.
How will you communicate with me?
The Avestor portal will serve as the main communication hub, where you can view your cash balance, wire funds, manage investment amounts, confirm deadlines, and download any necessary financial statements. You will also receive a 1099 statement at the end of each year for your tax filing.
Do you invest in your own deals?
Yes – We operate on a core value of treating investors’ money as if it were our own. We invest alongside our clients in every deal.
Do you perform due diligence?
Yes – We perform due diligence on each deal we acquire, following a strict “buy box” to identify the financial viability of each deal.
Can I invest using a retirement account (IRA or solo IRA)?
Yes – You can invest in real estate with certain retirement accounts. We are happy to discuss how to boost your IRA investing returns with real estate investing.
What is the asset management fee?
The annual asset management fee of 1.5% of capital contributed is assessed on a quarterly basis using a prorated amount. The fee is deducted from the quarterly interest return and is mandatory even if you withdraw prior to the assessment deadline.