We currently support personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations). For more information on IRA accounts, see below.
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.
An accredited investor, in the context of a natural person, includes anyone who:
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 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:
In this context, 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.
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 REM Capital.
Currently we have only offered opportunities to accredited investors in order to comply with the SEC regulations. If you are not an accredited investor please reach out to us for more information so that we can get to know each other better. We can offer further advice once we understand your situation better.
Distributions are planned quarterly.
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 are allowed to visit the property before investing and during the life of the project.
REM 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.
A Limited Partnership is formed, which holds title to the property. BENA Capital serves as the General Partner, while investors are Limited Partners. The Limited Partnership structure provides investors with both liability protection as well as pass-through tax benefits.
A Limited Partnership is a legal entity which consists of a General Partner and one or more Limited Partners. The General Partner is responsible for making all decisions, but retains the liability for the partnership. The Limited Partners are passive investors but receive liability protection.
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 $250,000 depending on the type of fund.
Investors receive profit distributions on a quarterly basis. Typically those are sent by the end of the following month once all of the financials are finalized.
Investors receive pass-through tax benefits, which means that all distributions flow to each limited partner. The Limited Partnership 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 fund’s target property types, markets, and projected returns. Investors complete the investment documents and contribute capital. Profit checks and investment updates are delivered to investors each quarter.