Here's how passive investing works
1. Register with Us
Apply (Free) to be in the group with other like-minded investors seeking to build wealth. Access our education library.
2. Schedule a Call
Get to know us and we get to know you. See if passive investing is a good fit for you and answer any questions you may have.
We share passive investment opportunities with the group. If you are interested in investing then we can walk you though the whole process.
Once you invest. That's it. You will receive quarterly reports and investment updates. Your distributions will be made either check or direct deposit.
FREQUENTLY ASKED QUESTIONS
As a passive investor, you won’t have any other active responsibilities in the deal. The Sponsor (general partners) in the deal, will manage the asset on your behalf.
To be considered as an accredited investor, you must meet one of the following two criteria:
- Have $1 million in net worth (not counting your primary home).
- Have either an annual income of $200,000 per year or an annual combined income of $300,000 (together with your spouse).
Additionally, you must have maintained this net worth or these annual income amounts for the past two years and intend to continue doing so over the coming year.
The minimum investment is $50,000
Our funds invest with carefully vetted operating partners. The operators are responsible for day-to-day management of the properties We do intense due diligence on each operator before approving them and serve as a large capital provider assuming responsibility for oversight, reporting, and major decisions on behalf of our investors.
Each Passive Investor Club Capital Fund is structured as an LLC. As an investor, you will own a membership interest in a the Capital Fund. Through this structure investors have direct ownership in the individual properties in the Fund, giving you access to tax benefits.
You can invest with cash and through trusts, LLCs, and LPs. In addition, you can invest through eQRPs, self-directed IRAs, and self-directed 401(k)s.
A REIT (Real Estate Investment Trust) is basically real estate flavored stock and is often highly correlated to the performance of the stock market. As direct fractional investors, Passive Investors Club investors are protected from that volatility.
Additionally, direct fractional ownership provides investors access to all of the tax advantages that are often unavailable to REIT Investors. REITs typically make the majority of their fees through transactions, while the bulk of our fees come after our investors make money.
An investment in the funds should be considered long-term in nature. Investors should be in a financial position that will enable an investor to hold their investment for the duration of the fund, which is projected as up to Three (3) to ten (10) years, or longer for the Income Fund.
Because you will invest in a Limited Liability Company, your liability cannot exceed the amount of your investment plus amounts distributed to you. One value of real estate as an investment as compared to stocks, etc., is that it is highly unlikely for property to lose all value, as is possible when investing in stocks. Companies can go completely out of business or have their value reduced to virtually nothing. The passive investors carry no lending risk.
Commercial real estate can provide several tax advantages to an investor:
- Cash flow distributions will often flow to you on a tax-deferred basis
- Proceeds from refinance events typically come to you with no immediate tax obligation
- The step up in basis benefit reduces your heir’s tax obligation when they sell the inherited asset
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A Community of Like-Minded Individuals Seeking Financial Freedom Through Passive Investing in Commercial Real Estate
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