How It Works?
Our dedicated team will work with you to get the most out of your investment.
Step 1
We get to know each other.
We meet and chat with you to provide you guidance on what investment makes sense for you for your goals. In parallel, we identify and start acquisitions on a project with a strong return profile and diversified risk that fits our stringent criteria.
Step 2
You get to know the investment.
We believe it is important to invest in more than just stocks and bonds. We help you diversify your portfolio with commercial real estate assets and other high yield investment opportunities (multi-family, retail, and office project types) to create a more efficient portfolio and improve your risk-adjusted returns.
Step 3
You decide to invest with us.
If you decide to invest with us on a specific project, we provide you subscription docs and private placement memorandum for your review. You then wire your committed amount to an escrow account in exchange for shares of the investment.
Step 4
You collect passive income and profit.
We provide monthly and then quarterly updates on the project and business plan. We provide quarterly distributions on cash flow based on the performance of the investment and your preferred returns. We will provide K-1s at the beginning of every tax year, showing your income and depreciation losses to help offset your actual cash flow.
Frequently Asked Questions
We can quickly and easily answer all your questions
Accredited Investors
You can get started as an investor with Freeman Equity Group by completing the Contact form at: https://freemanequity.com/#contact
One of the General partners will follow up with you via e-mail in order to schedule a time to investment options.
Yes, as long as the IRA(SEP, IRA and KEOGH) as all eligible as long as the IRA can be “self-directed“. Normally you only simply need to contact the firm which holds your IRA and direct them to make you the custodian.
In the case of a 401k employer-sponsored retirement plans are not eligible however you can invest from a Solo 401k which is “self-directed”.
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).
On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.
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.
Minimum investment for accredited investors is $100,000 this is due in part to the 506c Reg. D reporting requirements.
There is no maximum investment limit for investing for our offerings under Regulation D Rule 506(c).
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.
Net operating income(i.e. rental income – minus debt service and required operating capital funds) are returned to investors on a monthly basis(unless otherwise stated in the Operating agreement.) based on each investor’s equity stake.
In addition on sale of a property the total proceeds(Initial investment plus profit based on equity stake) is return to each investor immediately after closing.
Non-Accredited Investors or Sophisticated Investors
You can get started as an investor with Freeman Equity Group by completing the Contact form at: https://freemanequity.com/#contact
One of the General partners will follow up with you via e-mail in order to schedule a time to investment options.
Yes, as long as the IRA(SEP, IRA and KEOGH) as all eligible as long as the IRA can be “self-directed“. Normally you only simply need to contact the firm which holds your IRA and direct them to make you the custodian.
In the case of a 401k employer-sponsored retirement plans are not eligible however you can invest from a Solo 401k which is “self-directed”.
A “Non-accredited“ or “Sophisticated” investor is one who, alone or with a purchaser representative, has such knowledge and experience in financial and business matters that he or she can evaluate the merits and risks of the prospective investment. However they do not meet either the earned income or net worth requirements of an “Accredited” investor.
Minimum investment for non-accredited investors is $10,000 this is due in part to the 506b Reg. D requirements which only allow up to 35 non-accredited investors.
According to Regulation A our offerings are available to non-accredited investors. You can invest in the non-accredited fund up to 10% of your annual income (yours alone or with a spouse) or net worth (excluding your primary residence), whichever is greater. Currently, the minimum investment is $5,000 is available to non-accredited investors.
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.
Net operating income(i.e. rental income – minus debt service and required operating capital funds) are returned to investors on a monthly basis(unless otherwise stated in the Operating agreement.) based on each investor’s equity stake.
In addition on sale of a property the total proceeds(Initial investment plus profit based on equity stake) is return to each investor immediately after closing.