Q1: What is an Accredited Investor? Do I have to be Accredited to invest?
To be an accredited investor, a person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or a higher income in the current year.
A person is also considered an accredited investor if they have a net worth exceeding $1 million, either individually or jointly with their spouse NOT including their primary residence.
You do NOT have to be an accredited investor to invest, a sophisticated investor may also invest. A sophisticated investor is: a high-net-worth investor who is considered to have a depth of experience and market knowledge that makes them eligible for certain benefits and opportunities.
Generally speaking, sophisticated investors are seen as those who will not need to liquidate investment assets in the short term, and can even sustain a loss of their investment without damage to their overall net worth.
Q2: Are these investments risky?
Any investment carries risk and there are no guarantees with any investment. That being said, your money is secured to a physical piece of real estate through a first lien position. In the case of a default we are always the first one in the capital stack to get paid. In the case that a borrower defaults, we will take back the property and quickly resell, and in the very rare case of a massive market correction, then we will rent the property out until in a position to sell it.
Q3: Why commercial real estate?
Our family has chose commercial real estate because we are looking to grow our wealth but also receive cash flow. Having a blended return of equity and cash flow is a nice complement to not just retirement, but every day life. We focus on Multifamily, Mobile Home Parks and Self Storage.
Q4: Can I passively invest in real estate with my tax deferred money?
It is certainly possible to invest in our deals through a Self-Directed IRA (SDIRA), Qualified Retirement Plan (QRP), or Solo 401k. To learn more read an article we recently published about this subject. This can be the absolute MOST POWERFUL way for many investors to invest.
Q5: How can I learn about the current investment opportunties?
The best way is to schedule a call with Dave and get a better understanding of what our goals are for you as a company, following the call you can join our email list and be notified when new investment opportunities become available.
Q6: What is the minimum investment amount?
The minimum investment for Real Alternative Capital is $50,000.