FAQ

According to the Investopedia: Real Estate is the land and any permanent improvements attached to the ground, whether natural or manufactured—including water, trees, minerals, buildings, homes, fences, and bridges. A real estate is a form of real property. It differs from personal property, which are things not permanently attached to the land, such as vehicles, boats, jewelry, furniture, farm equipment, and securities such as Stocks and Bonds

• Real estate is a class of “real property” that includes land and anything permanently attached to it, whether natural or manufactured.
• There are five main categories of real estate: residential, commercial, industrial, raw land, and special use.
• You can invest in real estate directly by purchasing a home, rental property, or other property, or indirectly through a real estate investment trust (REIT) or REAL ESTATE SYNDICATIONS OR FUNDS offered by Sponsors.

There are five main types of real estate:

1. Residential real estate is property employed for residential purposes. Examples include single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences with fewer than five individual units.
2. Commercial real estate is property employed exclusively for business, such as apartment complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centers, stores, and theaters.
3. Industrial real estate is property employed for manufacturing, production, distribution, storage, and research and development. Examples include factories, power plants, and warehouses.
4. The land is undeveloped property, vacant land, and agricultural land (farms, orchards, ranches, and timberland

Definition Real estate investing refers to purchasing property as an investment to generate income rather than using it as a primary residence. Any land, building, infrastructure, and other tangible property is usually immovable but transferable.

Definition by Investopedia: Passive income is earnings from a rental property in which a person is not actively involved. Active income and Passive income are taxable, but it is often treated differently by the Internal Revenue Service (IRS). The Internal Revenue Service (IRS) has specific rules for what it calls material participation, which determine whether a taxpayer has actively participated in business, rental, or other income-producing activity. Therefore, a taxpayer can claim a passive loss against income generated from passive activities.

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 refinancing 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

We are not professional tax advice and should not be relied upon for making investment decisions. Instead, investors should consult with their financial advisor, accountant, and tax attorney for tax advice specific to their particular needs and objectives.

If not done wisely, real estate investment may even lead to poor returns or depreciation of the investment value. The following are some of the primary reasons for which the real estate investing goes wrong:

• Lack of Knowledge: Before investing in real estate, one must have ample knowledge and information about the project they are planning to spend in. Most investors fail to analyze the right investment time or potential of the property and cannot generate good returns on their sum.
• Poor Management: Buying a suitable property or real estate project as an investment is an art. But the investor needs to equally pay attention to the management and maintenance of that property, contractors, budget, and tenants. In the case of real estate, which lacks management’s leadership, the returns may deplete.
• False Calculation: Real estate investing requires a calculative approach and mathematical skills to determine the future profitability of a project. Sometimes, investors lack these particular skills and fund in less beneficial projects.

Selling an investment too soon;  An impatient investor makes the most common mistake of expecting a high return from a real estate investment in a short period. And if it does not happen, they lose hope and give up easily. However, such people need to understand that these investments yield high returns in the long run.

A real estate syndication is a way for investors to pool their funds together to buy a real estate asset. The asset is usually more significant than what an individual could purchase independently.

Each Real Estate Syndication must file documentation and report to the Securities and Exchange Commission (SEC).

An accredited investor is an individual who meets the guidelines and requirements of income and net worth based on securities and exchange commissions (SEC) regulations. As a result, the SEC can ensure proper protection for all investors. To be an accredited investor, you must satisfy at least one of the following:

• Have an annual income of $200,000, or $300,000 for joint income, for each of the last
  two years, with expectations of earning the same or higher income this year
• Have a net worth exceeding $1 million, not counting your primary home.
• Some licensed professionals may also be considered accredited.

Every investor’s tax situation is different. Therefore, you must consult with your own tax professional for specific tax advice.

Some items to consider:

• Equity Partner will receive a Schedule K1 reporting the income or losses from the property.
• Additional state tax returns could be required to file.

Visit our Investor Portal

The information contained on this page is for information purposes. It is not an offer to sell or a solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would violate any laws. The price and value of the investments referred to herein and the income from such investments may fluctuate. Investors may realize losses on these investments, including a loss of principal. We do not provide tax, accounting, or legal advice to our clients, and all investors are to consult with their tax, accounting, or legal advisers regarding any potential investment. The information and any opinions contained on this page are from sources that we consider reliable. We do not represent that such information and opinions are accurate or complete. Past performance is not indicative or a guarantee of future performance. Interested investors should review the Private Placement Memorandum (PPM) and Operating Memorandum (OM). All terms of this page are subject to the terms of the PPM and OM. Projected returns and various assumptions are subject to risks outlined in the PPM.