How does Acquire Real Estate work?
Acquire Real Estate allows accredited investors to pool their money and invest as little as $10,000 into pre-screened, institutional quality real estate opportunities via an online portal. Investing in direct real estate opportunities is now as easy as scrolling through your laptop while sitting on your couch. Acquire Real Estate also lets you pledge money to sponsors allowing you to have early screenings of any deal that the operator lists on our website. Click here for more information.
What are the benefits of using Acquire Real Estate?
Acquire Real Estate makes it easy for our members to invest in a variety of real estate opportunities throughout many geographic locations from the comfort of their home. We spend a tremendous effort sourcing real estate investments so our members don't have to. Our services allow you to screen investments online, sign legal paperwork online and have access to all your documents in one place on your investor dashboard.
Is the Acquire Real Estate website secure?
Yes. We go to great lengths to ensure the security of all of our members and our data and use Secure Sockets Layer (SSL). SSL is the standard security technology for establishing an encrypted link between a web server and a browser. This link ensures that all data passed between the web server and browsers remain private and integral. SSL is an industry standard and is used by millions of websites in the protection of their online transactions with their customers.
How does an investment get listed on Acquire Real Estate?
Acquire Real Estate's experienced team has long standing relationships with many of the top real estate sponsors out there. These companies request permission to list their investment opportunities on the Acquire Real Estate platform. Our staff reviews their materials and determines whether the company and the investment is a strong opportunity for our members.
When companies (Sponsors) list equity transactions on the Acquire Real Estate platform, what criteria does Acquire Real Estate look for?
In general, we are cash flow investors and we look for transactions to provide, safe, predictable cash flow to investors. In some cases the listed properties may have some level of vacancy and the operating partner will attempt to fill that vacancy and bring additional value and increase cash flow over the life of the investment. We will, on occasion, offer development deals to our members who are seeking a higher yield and are willing to take increased risk. Development deals that we offer will only be from sponsors with a history of successful developments in a strong proven markets.
How is Acquire Real Estate different than a Real Estate Investment Trust (REIT)?
When investing in a REIT, you are not investing directly in real estate. Rather you are purchasing shares in a company that derives its revenue from investments in real estate. Investors in a REIT have no control over where and how their money is deployed into real estate investments. With Acquire Real Estate, investors can invest in individual properties of their choice, which in turn provides complete transparency and control over their decision.
Who makes decisions in an LLC?
The decisions in an LLC are governed by a document called an â€œoperating agreementâ€. While every operating agreement is slightly different, they usually include a manager (who may also be a member) and limited members. The manager typically makes all of the day-to-day decisions and the limited members act as passive investors on the transaction. The manager can determine how much cash to distribute to the limited members versus how much to hold in reserve and assess possible sales for the property. There are certain activities that might mandate a vote by the limited members and the limited members can typically take action if the managing member defaults on the terms of the agreement or is grossly negligent.
Why is it only for accredited investors?
Acquire Real Estate has modeled its investment platform around the accredited investor due to the regulation from the Securities and Exchange Commission. Accredited Investors are defined by the SEC as having $200,000 of annual income per individual ($300,000 per couple) with the expectation of that continuing, or a net worth of more than $1 million, excluding the value of the primary residence. Acquire Real Estate is a private, password-protected network for accredited investors in order to meet these guidelines.
How will I be updated about my investment?
Acquire Real Estate will work with the real estate company to ensure timely updates are shared with all investors at least quarterly. Updates will be provided via email and via your investor dashboard. In addition, you will receive tax documents every year that you have a distribution from a real estate investment on Acquire Real Estate.
How does the JOBS Act impact Acquire Real Estate?
The JOBS Act was signed into law on April 5, 2012 by President Obama; Title II of the JOBS Act became effective on Sept. 23, 2013, and Title III is currently under an SEC rulemaking period. Acquire Real Estate is currently only open to accredited investors and relies on legal structures and exemptions that existed before the JOBS Act.
Real Estate Investing Questions
What types of investments does Acquire Real Estate offer?
Acquire Real Estate currently offers both debt and equity investment opportunities. We focus on investing in high quality properties with stable, consistent cash-flow, including, but not limited to, shopping centers, apartment buildings, office buildings, industrial buildings and self-storage facilities. To learn more, click here.
What does Acquire Real Estate do to review the requested investments for the platform?
Our team at Acquire Real Estate has over 60 years of combined experience and has owned and developed over 5 million square feet, sold over $9 billion and funded in excess of $1 billion in real estate transactions. We go through extensive data research and due diligence to fully understand the details of each transaction we offer including the market environment, the quality of the property, the projected returns and the reputation and history of the sponsor we are working with.
When I invest in deals listed on the Acquire Real Estate platform, what do I own?
When you invest in a property with Acquire Real Estate, you are purchasing shares of an LLC as a limited member. In turn, that LLC owns a share of a specific investment property, like a grocery anchored shopping center, for example. An LLC gives you liability protection, shielding your personal assets from the investment.
If I invest with Acquire Real Estate and something happens to Acquire Real Estate, what will happen to my investment?
Acquire Real Estate operates LLCs that could be managed by a replacement manager. Acquire Real Estate would appoint an agent, such as a national bank or trust company, to manage the LLCs in the event Acquire Real Estate is unable to manage them.
When is my investment complete?
With Acquire Real Estate your investment is completed the minute your funds settle our Automated Clearing House (ACH). Unlike most Real Estate Crowdfunding Platforms who operate on a "best efforts" model we are able to eliminate the lengthy escrow process by prefunding all opportunities and allowing investors to purchase interests on a rolling basis.
Are there fees for investors?
Joining Acquire Real Estate and browsing the investment opportunities is free. Should you chose to invest, there is a fee associated with each investment. The fees depend on the nature of the transaction. In addition to administrative and legal expenses, the fees will cover the ongoing reporting and communications for the investments.
When will I get my investment back?
The real estate investments you find on Acquire Real Estate are private transactions in physical properties around the United States. The investments are not traded on public stock exchanges and cannot be easily sold or traded. Different properties have different expected â€œhold periodsâ€. A hold period is the anticipated time investors will be involved with the investment until it is re-sold and range from less than 6 months to greater than 5 years. It is important to read the offering memorandum for a deeper understanding of the hold period for each investment. As an investor, you will receive a return on your investment when the company distributes money.
Are these investments risky?
Yes. Similar to investing in the stock market, there is no guarantee when you are investing in real estate. The real estate market has economic cycles and it is difficult to know how and when the economy will change. But we strongly believe the main benefit of investing with Acquire Real Estate is that you are investing in tangible hard assets around the United States. Your investment is in an actual property you can visit.
Is there an investment minimum?
Yes. The minimum investment is $10,000.
What if more money is needed for the property?
Acquire Real Estate investments typically do not have capital calls. A capital call is where the investor is required to commit more money to the property, beyond the initial investment. Investors will have the opportunity but not the requirement to put more money into the deal. However, if an additional capital raise is required it is possible that investors will be diluted.
What are the tax implications of investing with Acquire Real Estate?
While we cannot provide legal or tax advice and recommend you speak with your own accountant or attorney, one of the benefits of investing in real estate equity through Limited Liability Companies (LLCs) is that they can be taxed as partnerships allowing for the entity to function as a "pass through". For example, profits, losses and depreciation can be passed through to the investors, as applicable on equity investments.