Frequently Asked Questions

 

How do I get started as an Investor with Griffin Crowd Capital?

First, we need to know if you are interested in one of our projects. You can do that by clicking the “Investment Opportunities” button at the header of this page. You will be prompted to sign up for an account, at which point you will be able to create your login ID and Password. If you see a project you would like to invest in, we then begin the process of making sure you are an accredited investor in the state or country you reside in.

What type of accounts can I invest through?

You can invest using the bank you currently use, from there the money invested will go into a trust account to be used for the project you are interested in.

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What is a K-1?

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.

When will the K-1 be available to investors?

Schedule K-1s must be prepared and made available by March 15th of each year. Our goal is to deliver all K-1s by March 15th, allowing sufficient time for our investors and their tax advisors to incorporate into filing prior to the April 15th filing deadline.

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Am I an Accredited Investor?

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.

Do I have to be an Accredited Investor to invest?

Yes. Our offerings under Regulation D Rule 506(c) are available to accredited investors only.

Can I invest if I live in another state?

Yes, as long as you are an accredited investor in the U.S.A, you can invest with Griffin Crowd & Capital.

Can I add funds after my initial investment?

Yes, you are capable of investing more after your initial investment. The agreement you sign at the beginning of the verification of accreditation spells out all the details of how that works and any limits to this.

When can I expect my first distribution?

Distributions are either monthly or quarterly. Determination of this payout schedule is based on the project at hand and the current situation at the time of initial acquisition. It will be possible for one project to be monthly and another project to be quarterly. This will all be spelled out prior to any investment and at the initial informational display of any project.

What is the difference between this and a REIT?

A REIT investment is a blind fund and the investor has no control over the type of property being bought and you are at the whim of the controller of that REIT. This type of investment allows you to be the manager of your money. YOU choose where to invest your money and how much. If you don’t like any projects that are being offered, don’t invest. If you like 2 or more, invest in all of them. It’s all up to you.

What are the risks involved?

As with any investment, there will always be an inherent risk. We at Griffin Crowd & Capital will do our best to provide all the pertinent variables concerning each and every project. The benefit of investing in real estate is that you are buying into a tangible, tactile asset that will be standing in the event of turbulence in the market. We negotiate all aspects of the transaction to ensure the most favorable terms for you and our investors. We still encourage and ask our investors to do their own due diligence on each project to make sure each project is a suitable fit.

Contact Us

Should you have any questions regarding any step of the process, please feel free to contact us. We are happy to support you.