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FAQs

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Frequently Asked Questions

There are many ways you can participate in Commercial Real estate investing. You can invest with cash, through trusts, using truly Self-Directed Ira’s and more.

Our conservative approach allows us to only present our investors with opportunities that meet the following expected performance criteria:
5% to 7% Average Annual Cash Flow (typically distributed on a quarterly basis.) 12% to 15% Annualized Cumulative return from all sources. This includes cash flow and equity growth (as reflected by appreciation and principal pay down, realized at an equity harvesting event).
While our performance history is strong, these are not guaranteed returns. Commercial Real Estate Investing is not a good fit for everyone.

We only invest in emerging markets with above average job growth drives economic growth. We do not expose our investors to high-risk markets with an unfriendly business environment.

There are several tax advantages to investing in Commercial Real estate:

  • – Quarterly, cash flow distributions flow to you on a tax-deferred basis
  • – Proceeds from refinance events can come to you with no immediate tax obligation
  • – 1031 Exchanges allow you to defer capital-gains taxes
  • – the Step Up in Basis benefit reduces your heir’s tax obligation when they sell the inherited asset.

    • This is not professional tax advice. Please consult with your tax professional to better understand your individual tax situation.

    Persons qualify under any of the following:

    • Annual income of $200,000 individually for the last two years with expectation of earning the same or higher income.
    • Annual income of $300,000 for joint income for the last two years with expectation of earning the same or higher income.
    • Net Worth exceeding $1 million (excluding primary residence), either individually or jointly with his spouse.

     

    Entities (Trust, LLCs, LPs) qualify under any of the following:

    • Private business development company or an organization with assets exceeding $5 million.
    • Entity consists of owners who are accredited investors (per the definition above).

    Commercial real estate investing involves large investment amounts and limited regional opportunities. USE, on the other hand, allows accredited and institutional investors to invest for as little as $50,000, all from the convenience of an investor’s computer, tablet or smart phone. This means that investors can participate in opportunities that historically may have been available only to large institutions. You’ll also be investing “passively” — like stocks and bonds — so that you don’t need to directly be concerned with the management headaches associated with a property.

    Distributions are typically made quarterly from available operating cash flow. Size and timing of distributions depend on the business plan and performance of each investment. Investors are notified of upcoming distributions and can track their distribution history.
    Investments are typically structured as LLCs. For each investment, we invest alongside with investors in the transaction and are responsible for day-to-day management of the property. We assume responsibility for oversight, reporting, and major decisions on behalf of our investors.
    We focus on quality over quantity. Our team invests in every transaction we pursue, which instills both patience and alignment. We are constantly reviewing opportunities but only act on the small subset we find compelling. As such, only a small number of investments may be available at any given time.
    Our investment horizon varies by opportunity, but a typical business plan assumes a 3-7 year hold period.
    USE allows you to choose and invest in a specific property, whereas a REIT only allows investments into pools of capital that are often directed toward investments limited by asset class or geography. REITs are often so large that they have difficulty participating in opportunities involving “small balance” projects under $50 million, which represent many of the opportunities sought by USE. Finally, because most REITs are publicly traded, the shares in those REITs can be subject to the same volatility as may be experienced by the stock market generally. You should consult your tax or investment advisor for additional information.
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