Yes. Many investors participate through self-directed IRAs or other qualified retirement accounts. We recommend working with your IRA custodian or financial advisor to ensure your account is properly structured before investing.
Investments may typically be made through individual accounts, joint accounts, trusts, business entities (LLCs or corporations), and certain retirement accounts. Our team can help you determine the most appropriate structure based on your financial goals and circumstances.
An accredited investor is generally defined by income or net worth thresholds established by securities regulations. This commonly includes individuals earning over certain annual income levels or those with a net worth exceeding $1 million excluding their primary residence. Our team can help guide you through the qualification process.
A sophisticated investor is someone who has sufficient financial knowledge and experience to evaluate the risks and merits of an investment, even if they do not meet accredited investor income or net worth requirements.
Not always. Investment eligibility depends on the specific offering and applicable regulations. Some opportunities may be open to sophisticated investors, while others may be limited to accredited investors only.
Different real estate investments will have different expected hold periods.
A hold period is the anticipated time investors will be involved with the investment until the underlying property is sold or recapitalized to liquidate investors. Hold periods are typically associated with the underlying business plan of the specific property as well as any associated debt financing for the project. It is important to read the offering documents provided by the relevant real estate company for each investment opportunity for a deeper understanding of the hold period for each investment.
A K-1 is a tax form used by companies taxed as partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships (and LLCs that elect to be taxed as a partnership) are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided by sponsors to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
Please note that Onside Capital does not provide tax advice. We strongly encourage you to seek advice from a tax professional.
