A K1 will be issued to you as a partner in the LLC that purchases the properties. A K1 is a tax document used by partnerships to provide investors with specific information on their portion of the taxable income of the partnership.
Partnerships are normally exempt from federal and state income taxes, but they must send a K1 to each investor to disclose his or her share of the partnership’s revenue, profits, losses, deductions, and credits. K1s are issued to investors on a yearly basis so that they can deduct K1 amounts from their tax returns.
Partnerships are normally exempt from federal and state income taxes, but they must send a K1 to each investor to disclose his or her share of the partnership’s revenue, profits, losses, deductions, and credits. K1s are issued to investors on a yearly basis so that they can deduct K1 amounts from their tax returns.
In the context of a natural person, an accredited investor is someone who:
Earned income of more than $200,000 (or $300,000 with a spouse) in each of the previous two years, and expects to earn the same this year,
OR
Has a net worth of over $1 million (excluding the value of the person’s primary residence), either alone or with a spouse.
In addition, accredited investors include banks, partnerships, businesses, organizations, and trusts, among others. These entities would be deemed accredited investors, the following may be relevant to you, depending on your circumstances:
any trust with total assets of more than $5 million that was not founded to buy the subject securities but was instructed to buy them by a sophisticated person, or any entity in which all of the equity owners are accredited investors.
A sophisticated person in this context means that the person must have sufficient knowledge and experience in financial and business matters, or that the company or private fund offering the securities reasonably believes that this person has, to evaluate the merits and risks of the prospective investment.
Earned income of more than $200,000 (or $300,000 with a spouse) in each of the previous two years, and expects to earn the same this year,
OR
Has a net worth of over $1 million (excluding the value of the person’s primary residence), either alone or with a spouse.
In addition, accredited investors include banks, partnerships, businesses, organizations, and trusts, among others. These entities would be deemed accredited investors, the following may be relevant to you, depending on your circumstances:
any trust with total assets of more than $5 million that was not founded to buy the subject securities but was instructed to buy them by a sophisticated person, or any entity in which all of the equity owners are accredited investors.
A sophisticated person in this context means that the person must have sufficient knowledge and experience in financial and business matters, or that the company or private fund offering the securities reasonably believes that this person has, to evaluate the merits and risks of the prospective investment.
A Sophisticated Investor does not satisfy the Accredited Investor’s qualifications, but they do have investment experience. This could indicate that the person believes they have sufficient financial and business knowledge and expertise to assess the merits and dangers of a potential venture.
Quarterly distributions are planned.
Investor funds are used for the total acquisition cost of the property. This includes, but is not limited to, the initial down payment, acquisition fees, legal and transaction charges, capital improvements, and reserves.
Absolutely! Before investing, and throughout the project’s existence, investors are allowed to tour the property. If you give us enough notice, we will personally walk you around and answer any questions you may have.
IF YOU ARE A BROKER, WITH A PROPERTY TO SELL, OR AN OWNER THAT WANTS TO SELL YOUR PROPERTY, TELL US ABOUT IT!
IF YOU ARE AN INVESTOR, INTERESTED IN HEARING MORE, OR GETTING ON OUR MAILING LIST, TELL US ABOUT YOURSELF!
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CONTACT US:
7901 4th Street N, Suite 300
St. Petersburg, Florida 33702