An accredited is defined by the U.S. Securities and Exchange Commission as meeting at least one of the following requirements:
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)
The full range of capital required for a property investment starting at the bottom with the most senior (priority) debt and “stacking” on top the additional capital ending with the least senior capital in the stack, the equity.
The ratio of a property’s Net Operating Income to its value on a static basis. Also known as the property’s cash yield.
Unleveraged, low-risk/low-potential return strategy with predictable cash flows. Generally stable, fully leased, multi-tenant properties in strong, diversified metropolitan areas.
Moderate-risk/moderate-return strategy. Many of these properties will require some form of enhancement or value-added element.
Crowdfunding refers to the raising of capital for a venture or investment in increments from various investors.
Some listings involve purchasing a stake in the financing instrument, rather than the equity, of a property. The debt has a priority position in the capital stack over the equity.
Payments made to investors periodically over the course of the investment hold period.
Most deals involve investing in part of the equity of the project, or the capital that the developer invests in the property. The equity has a junior position to the debt in the capital stack.
Some listings are organized as funds. Investors invest capital for multiple properties at once under the management of the fund, as opposed to an individual property.
This is the minimum amount that an investor can invest into a property. It varies by property.
High-risk/high-return strategy. The properties will require a high degree of enhancement. This strategy may also involve investments in development, raw land, mortgage notes, and niche property sectors.
This refers to the percentage of the desired capital that has currently been raised. Once a project has achieved 100%, the listing will move to the Closed Deals page.
The value of the property produced upon sale at the end of the holding period.
This is an estimate of how long the investor should expect to have money invested in the property.
IRR is the calculation of an investment’s return on its initial investment. The targeted IRR is the property developer’s pro forma return of and on the investment and takes into account the initial investment, the annual net cash flow from the project and the reversion or net cash flow upon sale of the project.
Medium-to-high-risk/medium-to-high-return strategy. It involves buying a property, improving it in some way, and selling it at an opportune time for gain. Properties are considered value added when they exhibit management or operational problems, require physical improvement, and/or suffer from capital constraints.
We are not a broker-dealer or investment advisor and we do not provide financial or legal advice. We do not perform any diligence on, endorse, or recommend any investment opportunity appearing on our website, in our advertisements, newsletters, email, or any other medium. We make no respresentation as to the truth, accuracy, or completeness of any information regarding, or the suitability of, any investment opportunity. We have no fiduciary or other obligations, or potential liabilities, to you. We are not responsible for ensuring compliance with applicable law regarding the purchase or sale of any security, and you should always consult with your legal and financial advisors.