Q: Do you provide audited financials?
A: Yes. A copy of the auditor’s report will be made available to Members on an annual basis.
Q: Can I invest through a Self-Directed IRA, or other retirement account?1
Q: Do you intend to use leverage?
A: It is anticipated that bank or seller financing will generally account for between approximately sixty percent (60%) and seventy percent (70%) of the gross fair market value of each Property, with a maximum loan to value ratio of seventy-five percent (75%) of the Company’s Property Portfolio.
Q: When do I begin to accrue a return?
A: Upon admittance into the Fund, an Investor’s account begins to accrue a return 30 days after the date of Acceptance.
Q: When will distributions likely begin?
A: The Manager’s goal to begin distributions at the conclusion of Q3 2016.
Q: When are distributions made?
A: Distributions may occur on a quarterly basis and the Manager intends to make distributions, if any, within 45 days after the close of the quarter.2
Q: What kind of reporting will I receive?
A: On a quarterly basis the Manager intends to furnish Members with a Fund update, which reports various activities and operations of the Fund. This report can range from 3-10 pages depending on the volume of activity for a given quarter. Annually, you will receive a K-1, as well the Fund’s audited annual financial statements.
Q: How long does it take to deploy my capital?
A: This can vary. Generally your capital will be deployed within 30 days of receipt. As your money is held in a third-party escrow account, if at anytime prior to being issued a Receipt and Acknowledgement for the Securities, you wish to cancel your subscription you may do so at your discretion.
Q: Are you a REIT?
Q: Must I be “Accredited” in order to invest in the Fund?
A: Yes. The Fund is offering Units to Investors under an exemption from securities registration afforded by Regulation D, Rule 506(c), which requires the Manager to take “reasonable steps” to verify that each Investor is “Accredited,” prior to allowing them admission to the Fund. There are eight (8) separate categories of Accredited Investors, under which an Investor may qualify, each of which is provided in the Fund’s Private Placement Memorandum, along with the documents the Investor must provide to demonstrate its qualifications to invest in this Offering. For more information, visit https://www.sec.gov/answers/accred.htm
Q: What is the duration of this Fund?
A: An investment in the Fund should be considered long-term in nature. Investors should be in a financial position that will enable an Investor to hold its Class A or Class B Interests for the duration of the Fund, which is projected as up to ten (10) years, or longer.
Q: Is the Fund eligible for a 1031 Exchange?
A: No, but we may be able to accommodate a Section 721 Non-recognition of Gain or Loss on Contribution. If you are the owner of an MHC and would like to submit your property for consideration, please utilize our Property Submission Tool found on MHCAmerica.com.
Q: How long before there is excess cash flow above the Preferred Return to split?
A: Likely during the first few years all Net Proceeds Available for Distribution less a Member’s Preferred Return will be used in acquiring, developing, and/or improving the Properties to help increase both the value of each such Property and future cash flow of the Fund. After withholding such sufficient Working Capital and Reserves as determined in the sole discretion of the Manager, distributions, if any, will be made to the Members.
1 The Company will accept investments by employee benefit plans subject to ERISA, including Individual Retirement Accounts (IRAs). ERISA rules state that, unless exempt, when benefit plans own twenty-five percent (25%) or more of the total value of any class of Interests offered by the Company, the Interests may be deemed a “Plan Asset”, which could subject the Company to additional fiduciary responsibilities, independent auditing, and reporting requirements. Organizations exempt from United States federal income tax under section 501(a) of the Code are subject to the tax on unrelated business taxable income (“UBTI”) imposed by Section 511 of the Code. While the Company does not anticipate generating a substantial amount of UBTI for any Member, there can be no assurance in this regard. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on investment.
2 Investors should consult with their financial advisor, accountant and/or tax attorney for tax advice specific to their particular needs and objectives.