FAQS
During the investment process, you will receive specific instructions for that offerings method of payment. The method of payment is specific to each project, so carefully review each step of the investment process.
All investing has risks so your initial investment is not guaranteed to be returned to you if things go very bad. However, we are just taking on a very moderate amount of debt so the risk on the project is low. And as a preferred stock holder you will be first on the equity line to be paid. The sponsors (Neighborhood Ventures) have common stock and will be paid after preferred stock holders. Hence, you are in a good position to get your money back if things start to go south.
If the full amount isn’t raised for the project, your funds will be returned to you.
You will receive a Schedule K-1 each year to use when you file your personal income taxes. It will include your proportion of income from the property income (rents) minus operating expense and when the property is sold, it will include your portion of the capital gain from the sell.
TWO YEAR PROJECT
THREE YEAR PROJECT
Both accredited and non-accredited investors can participate
After the loan is paid, the remaining will first go to preferred equity holders until they have received a 12% return. The remainder will go to common equity holders.
Currently, all of our individual projects are only offered to Arizona Residents. We do offer the Fund to individuals who qualify outside of Arizona.
The preferred return is capped at 12% but the benefit of being a preferred investor includes that you are being paid out before the common equity investors are paid.
Yes! Many investors have invested with an IRA. We work with Jeff from Directed IRA to make this easier for investors, he’d be happy to walk you through the process. Jeff’s contact info is below:
Jeff Minnick
Business Development Officer
Directed IRA & Directed Trust Company
T: (602) 899-9396 Ext. 115| F: (602) 899‑9641
3033 N Central Ave, Ste 400, Phoenix, AZ 85012
