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.

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.

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.

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

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.

Distributions are planned monthly.

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.

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

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.

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.

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

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

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.

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.