Frequently Asked Questions

Typical investment accounts are as individuals, joint accounts, tenancy in common, entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, S Corporations) and individual retirement accounts (more info on IRAs / 401ks below).

Yes, you can invest through your IRA. If you currently have a self-directed IRA, please check with your current custodian to ensure that they will allow you to place your investment with Groundswell Assets, LLC. If you haven’t converted from a traditional IRA to a a self-directed IRA you’ll need to contact a custodian to help you with that. If you need a referral we can connect you with the group we use personally.

As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships 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 to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.

An accredited investor, in the context of a natural person, includes anyone who:

• earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR

• has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

• any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or

• any entity in which all of the equity owners are accredited investors.

In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

A Sophisticated Investor doesn’t meet the requirements of an Accredited Investor but they have investor experience. This could mean the person believes they have sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

No. We currently have investment opportunities that are open to accredited and sophisticated investors. You’ll need to register to view our current offerings.

Distributions are planned so you recieve a check in your mailbox every quarter.

Once the deal is closed, the general partner (GP) should send consistent updates on the status of the deal. In regards to the information included in the update, this varies from GP to GP.

Typical monthly reports include occupancy rates, updates on the number of renovated units, details on our rental premiums and how they compare to our projections, capital expenditure updates, relevant updates on the market and resident events. Each quarter, we provide a link to the apartment’s financial statements, which include the T12 and the rent roll. Additionally, all statistics and particulars of the deal you are invested in will be available to you through our investor portal.

Overall, you want to know the status of the business plan and how the rents compare to the projections.

Investor funds are used for the total acquisition cost of the property. This includes but is not limited to the down payment for the actual purchase of the property, acquisition fees, legal and transaction costs, capital improvements, and reserves.

Absolutely! Investors are allowed and encouraged to visit the property before investing and during the life of the project. If you give us a heads up we can make sure someone is there to show you around and answer any questions..