FAQ
Frequently asked Questions
Your Investor Portal is the central hub where you can access all critical information related
to your investments, including:
Project Legal Documents – Review agreements and key legal paperwork.
Distributions – Track your investment payouts and payment history.
Quarterly Reports (for equity projects) – Stay informed about project performance.
Tax Documents – Download your 1099s and K-1s as soon as they are available.
Project Updates & Notices – Receive important communications regarding your investments.
Account Information Management – Securely update your bank details, contact information, address,
and more.
Minimum investment amounts typically range from $100,000 to $250,000 per investor, depending on
the specific offering.
Most offerings are available exclusively to accredited investors. However, certain Regulation D Rule
506(b) offerings may allow sophisticated investors to participate, subject to specific eligibility
requirements.
You are considered an accredited investor if you meet at least one of the following criteria established
by the SEC:
Income Test: You have earned at least $200,000 in each of the last two years (or $300,000 jointly with
a spouse or spousal equivalent) and reasonably expect to maintain the same income level this year.
Net Worth Test: You have a net worth exceeding $1 million, either individually or jointly with a spouse
spousal equivalent, excluding the value of your primary residence.
Professional Certifications: You hold certain financial licenses (e.g., Series 7, 65, or 82).
Entity Qualification: You invest through an entity with over $5 million in assets or an entity in which all
equity owners are accredited investors.
If you’re unsure, we’re happy to guide you through the verification process or connect you with a
third-party service that can assist.
Distributions are based on property performance and available cash flow and are typically made via
ACH transfer. Please ensure your banking information is current and securely saved in your investor
portal.
Debt Investments: Distributions are generally made quarterly.
Equity Investments: Distributions are also typically made on a quarterly basis, subject to sufficient cash
flow. Distributions are finalized after the quarterly financials are reviewed, which may take 75 days or
more following the end of the quarter.
Syndication investments are generally illiquid. Investors should be prepared to hold their investment
through the full duration of the business plan, as there is typically no secondary market for reselling
shares.
Investor returns in a commercial real estate syndication come from several sources:
- Ongoing rental income (cash flow)
- Proceeds from a refinance or sale (capital events)
- Appreciation of the property’s value
- Tax advantages such as depreciation and interest deductions
To evaluate investment performance, sponsors typically use the following key metrics:
IRR (Internal Rate of Return): A time-weighted metric that estimates the annualized return on your
investment, factoring in the timing of all cash flows, including both interim distributions and final
proceeds from a sale or refinance. IRR helps compare different investments with varying time horizons.
Cash-on-Cash Return: A measure of the annual pre-tax cash flow you receive divided by your invested
capital. For example, if you invest $100,000 and receive $8,000 in annual distributions, your cash-on-cash
return is 8%. This metric is helpful for understanding the income-generating potential of the investment
year over year.
Equity Multiple: This measures your total return on investment, regardless of time. An equity multiple of
2.0x means you doubled your money (e.g., turned $100,000 into $200,000 over the life of the investment).
It doesn’t account for the timing of returns, so it’s often used alongside IRR.
Each of these metrics provides a different lens through which to evaluate potential risk and return,
and together they offer a more complete picture of expected investment performance
All investments carry risk, and real estate syndications are no exception. Common risks can include:
- Market volatility or downturns that impact rents, occupancy, or asset values
- Financing challenges, such as rising interest rates or unfavorable loan terms
- Underperformance of the asset due to economic shifts or competitive pressure
- Execution risk, including poor property management or missed business plan objectives
To mitigate these risks, experienced sponsors and the UFUND team takes several key steps:
- Thorough due diligence on the market, property, and business plan assumptions
- Conservative underwriting with stress-tested financial models
- Maintaining adequate reserves to handle unforeseen expenses or delays
- Strong alignment of interests by co-investing alongside limited partners and structuring
While no investment is risk-free, our team aims to protect investor capital and increase the
likelihood of achieving targeted returns.
Yes, you can invest through a Self-Directed IRA (SDIRA), Solo 401(k), or other eligible retirement
accounts. We recommend coordinating with your custodian early in the process, as requirements and
timelines can vary by provider.
Please note that certain investments may trigger Unrelated Business Income Tax (UBIT), depending on
the structure of the deal and how leverage is used. We suggest consulting with your tax advisor to
understand how this may apply to your specific situation.
Tax documents depend on the structure of the investment:
1099-INT Forms (for debt investments) are typically issued by late February.
Schedule K-1s (for equity investments) are generally distributed between April and May, depending on
when the sponsor finalizes tax filings. For diversified fund investments, K-1s may take longer due to the
involvement of multiple sponsors.
As an investor, you may be subject to:
- Passive income taxes on distributed earnings
- Depreciation recapture at the time of sale
- Capital gains taxes if the asset is sold at a profit pressure
Investments may also offer tax advantages, including depreciation, which reduces taxable income and can
defer tax liability. Please consult your CPA or tax advisor to understand how these apply to your individual
situation.
As a limited partner in a syndication, your liability is limited to your invested capital. You are a passive
investor, meaning you do not have operational control or voting rights regarding day-to-day
management or investment decisions.
If active involvement in investment decisions is important to you, a direct investment or joint venture
structure may be a better fit.
