Understanding real estate crowdfunding for accredited investors
As an accredited investor, you’ve reached a significant milestone on your financial journey. Accredited investors are individuals who have demonstrated a high level of financial sophistication, often through substantial income or net worth. Explore the exciting realm of real estate crowdfunding.
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Who qualifies as an accredited investor?
Accredited investors are individuals or entities meeting specific financial criteria, allowing them access to unique investment opportunities that may not be available to the general public. The Securities and Exchange Commission (SEC) defines accredited investors as those with an annual income exceeding $200,000 (or $300,000 for joint income) or a net worth exceeding $1 million, excluding the value of their primary residence.
Our commitment to stringent
Project evaluation
At RealRise Capital, we take our commitment to providing exceptional real estate securities seriously. Our robust internal review process ensures that every project we consider for capital raising meets the highest standards of professionalism and viability. Issuer submissions are reviewed for eligibility, documentation completeness, and platform onboarding requirements. Not all submissions proceed to listing.
How it works
Here's an insight into our meticulous evaluation process:
01
Evaluation of the business plan and deal underwriting
Our team meticulously reviews issuer-provided business plan materials and the underwriting to assess the risks associated with the project.
02
Core competency assessment
We consider whether the proposed project aligns with the core competencies of the sponsor, determining if their expertise and team structure is a match for the proposed project plan.
03
Market Data and Assumptions
We require that deal assumptions are supported by comprehensive market data, to support the assumptions described in the issuer materials.
04
Financial review
We review the financials of the project, with options for self-certification, review by a certified public accountant (CPA), or full CPA audit based on the capital raising goals.
05
Background check on stakeholders
Our third-party partners conduct thorough background and bad actor checks (including KYC and AML) on the entity issuing the securities as well as every individual with a 20% or greater interest in the company.
06
Track record review
We review prior project experience to evaluate their history of success, recognizing that past performance does not predict or dictate the outcome of future projects.
07
Sponsor experience and team assessment
We review the experience and background of the team supporting the project to assess whether they appear to have relevant expertise for the proposed business plan.
08
Exit strategy analysis
We ask sponsors to describe anticipated exit considerations, aiming for adaptability in the response to changing market conditions. This is done to support sponsor flexibility in handling unexpected challenges, acknowledging that certain situations may be unpredictable.
09
Sources of funding
We inquire about the company’s other sources of funding, assessing the extent of needed capital, LTV, and leverage of other sources.
10
Professionalism and Industry Standards
Our team assesses the professionalism and industry adherence of all project materials, assuring that they meet or exceed established standards.
11
Regulatory Obligations
We inform companies of their responsibility as project sponsors/issuers and educate them on their function concerning the marketing and selling of securities. More information about this can be found here.
Investing in real estate securities carries significant speculative elements and involves certain risk factors. Our internal review process is designed to support platform onboarding and review of issuer-provided materials. Despite all or efforts to analyze the opportunities listed on our site, we encourage all investors to thoroughly perform their own due diligence based on the information we have provided. In the event that there are additional questions not covered in the offering materials we encourage and invite all users to utilize the comment feature to ask further questons about the investment opportunity.
Exploring potential investment opportunities
Accredited investors may use crowdfunding as one way to consider portfolio diversification.
By participating in crowdfunding offerings, accredited investors may gain access to investment opportunities they might not otherwise encounter, without direct involvement in day-to-day property management.
Crowdfunding can offer a way to participate in real estate opportunities within local markets as part of a broader investment strategy.
Explore our accredited investor-focused crowdfunding opportunities and unlock the access to private investment offerings.
Investor
Frequently Asked Questions
Can’t find the answer you’re looking for? Contact us or view our Resources Page.
During the investment process you will self-certify by inputting information about your annual income and networth.
Real estate crowdfunding offers accredited investors a unique and accessible opportunity to diversify their investment portfolios. By participating in real estate security offerings, you can benefit from the potential for attractive returns without the challenges of direct property management and ownership. This approach allows accredited investors to leverage their financial expertise while gaining exposure to the real estate market, all with a relatively low barrier to entry.
The minimum investment amount is set by the project sponsor, and you can find these details on the offering page. Given that our platform accommodates investments from both accredited and non-accredited individuals, accredited investors essentially have no specific minimum investment requirement
There can be tax implications when investing in real estate securities. Tax treatment can vary based on several factors, including the structure of the investment, your specific financial situation, and the location of the property. It’s important to consult with a tax professional or financial advisor to fully understand the potential tax consequences of any real estate investment vehicle. As an investor, you will receive the pertinent end-of-year tax documentation, such as a K-1 form for each specific project in which you are invested.
Within the best of our ability Secure Living will work with the project sponsors to send out project updates regarding the performance of the asset and any potential gains or losses generated from the property.
There are no fees associated with investing on our platform, but transaction fees may be incurred when placing an investment.
You may invest via your company. Additional documentation will be required to complete and verify the investment transaction.
