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Frequently Asked Questions

→What type of accounts can I invest through?

You can utilize your personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations) and IRA’s as explained in next question.

→Can I invest through my IRA?

Yes, you can invest through your IRA. If you currently have a self-directed IRA, please check with your current custodian to ensure that they will allow you to place your investment with CREE Capital.

→What is a K-1?

As a partner in the LLC that purchases the properties, you will receive a K-1. A 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 K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions, and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.

→Do I have to be an accredited investor to invest?

Currently we have only offered opportunities to accredited investors in order to comply with the SEC regulations.

→Am I an accredited investor?

An accredited investor, in the context of a natural person, includes anyone who:

Has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR

has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

On the income test, the person must satisfy the thresholds for the three 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, in which case the person may satisfy the threshold based on joint income for the years during which the person was married and based on 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:

Any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, OR

Any entity in which all the equity owners are accredited investors.

→ How Frequently are distributions made?

Distributions are planned monthly.

→What exactly are the funds used for?

Investor funds are used for the total acquisition cost of the property. This includes but is not limited to the actual purchase price of the property, acquisition fees, legal and transaction costs, capital projects, and reserves.

→ Can I visit the property?

Yes. Investors can visit the property before investing and during the life of the project.

→Who manages the properties?

CRE Equity Capital handles all of the decisions related to acquiring, managing, and selling the properties. Our role is to deploy our expertise to improve investor returns. We hire professional property management firms to handle the day-to-day activities and work closely with them to ensure that investor returns are maximized. Investors do not participate in the management activities.

→How long is the investment timeline?

Investment windows are generally 5-10 years. This window provides enough time to improve and stabilize the property, benefit from market changes, and exit for a healthy return. 5-10 are projections however there may be times where we can get a 5–10-year return in less time. Selling the property early in these cases may make sense but it will depend on the current conditions.

→What is the minimum investment?

Currently, investment minimums range from $50,000 to $1,000,000 depending on the needs for a particular asset.

→When do investors receive payments?

Investors typically receive profit distributions on a quarterly basis once all the financials are finalized at the end of each quarter.

→How are taxes treated?

Investors receive pass-through tax benefits, which means that all distributions flow to each investor. The LLC pays no taxes. Investors also benefit from the depreciation deduction for real estate, which reduces taxable income. Investors receive a Schedule K-1 by March 15th each year which includes a report of each investor’s share of profits, losses, deductions, and credits to include in their tax returns.

→How does the investment process work?

Investing is simple. Prospective investors receive an Offering Memorandum which details the target property, the market the asset is in, and projected returns. Investors complete the investment documents and contribute capital. Profit checks and investment updates are delivered to investors each quarter.

Contact Us

941-225-2840

Info@CREECapital.com

Schedule a Call

242 S. Washington Blvd Suite 313
Sarasota, FL 34236

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Disclaimer: The CRE Equity Capital website is intended solely for informational purposes. The The CRE Equity Capital website does not constitute an offer to sell, or a solicitation of an offer to buy, an interest in a The CRE Equity Capital investment opportunity. All information included in this website is believed to be current as of the date hereof and is subject to change, completion, or amendment without notice. The The CRE Equity Capital website does not purport to contain all the information necessary to evaluate an investment with The CRE Equity Capital, any such offer or solicitation will be made only by the delivery of a confidential Private Placement Offering Memorandum (PPM)relating to a particular investment.
This website may include forward-looking statements. All statements other than statements of historical facts included in this website, including, without limitation, statements regarding the future financial position, targeted or projected investment returns, business strategy, budgets and projected costs, plans and objectives for further operations, are forward-looking statements. Forward-looking statements reflect our current expectations and assumptions as of the date of the PPM, and are subject to a number of known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied.
*All offers and sales of any securities will be made only to Accredited Investors, which for natural persons, are investors who meet certain minimum annual income or net worth thresholds or hold certain SEC approved certifications. Any securities that are offered, are offered in reliance on certain exemptions from the registration requirements of the Securities Act of 1933 (primarily Rule 506C of Regulation D and/or Section 4(a)(2) of the Act) and are not required to comply with specific disclosure requirements that apply to registrations under the Act.
The SEC has not passed upon the merits of, or given its approval to any securities offered by CRE Equity Capital, the terms of the offering, or the accuracy of completeness of any offering materials. Any securities that are offered by CRE Equity Capital are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell any securities offered by CRE Equity Capital. Investing in securities involves risk, and investors should be able to bear the loss of their investment. Any securities offered by CRE Equity Capital are not subject to the protections of the Investment Company Act. Any performance data shared by CRE Equity Capital represents past performance and past performance does not guarantee future results. Neither CRE Equity Capital nor any of its funds are required by law to follow any standard methodology when calculating and representing performance data and the performance of any such funds may not be directly comparable to the performance of other private or registered funds. All prospective investors are encouraged to conduct their own independent due diligence investigation, review, financial projections, and consult with their legal, tax, and other professional advisors before making an investment decision.

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