Are you an accredited investor with at least $250,000 liquid, & love the idea of investing in real estate but don’t have the time to find deals, or manage the properties…?
If so, you are qualified to invest with us. Preferred returns of 5-10% per year and we expect to deliver over 15% per year over the life of the real estate fund.
Come invest with Pries Capital – An Investment Firm
ARE YOU 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 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, enough knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
DO YOU HAVE TO BE AN ACCREDITED INVESTOR TO INVEST WITH US?
Yes. Our offerings under Regulation D Rule 506(c) are available to accredited investors only.
HOW DO I GET STARTED AS AN INVESTOR-ONLY WITH PRIES CAPITAL?
You can get started as an investor with Pries Capital by simply Contacting Us.
The entire account creation and investment process can be completed in person at our office or online via email. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.
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-1 is provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
WHEN WILL YOUR K-1 BE AVAILABLE?
Our goal is to finalize your K-1 by March 31st; however, we do rely on outside reporting and may require additional time to furnish the forms in a way that is to the investor’s best advantage.
HOW LONG IS THE TERM OF THE FUND?
The minimal term of the fund is 10 years. This is very important because you want to be involved with a longer-term fund. Most of the time the reason firms go with short-term funds is because they just want their fee structure turning quickly.
The truth is you want to be long-term in real estate, you want time to be your friend. When you have pressure and short-term time working against you, you tend to make the wrong impulsive decisions for the investor and the firm all together. Again, we can’t stress this enough when considering funds to invest in, most of the time other funds talk positive about short-term is their own desire in raking in the fees.
What we want at Pries Capital is for our investors to make a profit first and foremost.
HOW DO INVESTORS MAKE MONEY?
Rental income and property appreciation…
Rental income is distributed to investors from the firm on a monthly or quarterly basis according to preset terms. A property’s value usually appreciates over time, so investors can net higher rents and earn larger profits when the property is sold.
Payment depends upon the time the investment needs to mature; usually this takes 7-10 years. Everyone who invests receives some share of the profits.
At the deal’s beginning, the Firm may earn an average acquisition fee of 1% (although it can be anywhere from .5 to 2% depending upon the transaction). Before the Firm shares in the profits for their work as manager and promoter, all investors receive what is called a “preferred return.” The preferred return is a benchmark payment distributed to all investors that is usually about 5-10% annually of the initial money invested.
IS THERE A PROFIT SPLIT STRUCTURE?
Pries Capital – An Investment Firm is structured so that the firm is motivated to ensure the investment performs well for everyone.
An example of a preferred return:
If you’re a passive investor who invests $50k in a deal with a 10% preferred return, you could take home $5k each year once the property earns enough money to make payouts possible.
After each investor receives a preferred return, the remaining money is distributed between the Firm and the investors based on the funds profit split structure.
If, for example, the profit split structure is 70/30 — investors net 70% of the profits after receiving their preferred returns and the firm nets 30% after the preferred return — here’s an example: after everyone receives their preferred return in a 70/30 deal, and there is 1 million remaining, the investors would receive $700k and the firm would receive $300k.
HOW MUCH OF JASON’S OWN MONEY IS IN THE FUND?
This varies from one fund to the other, but Jason goes into every real estate deal where he is going to invest 100% of his own money. In most cases it is where 100% of Jason’s money is invested in the fund, and then he opens it up other investors. If no one comes in, no matter, Jason Pries owns the fund 100% outright.
Pries Capital – An Investment Firm builds a real estate portfolio with or without outside investors. Jason Pries gives back by allowing others to take advantage of opportunities the firm finds and investing with us side-by-side.
WHEN SHOULD YOU EXPECT YOUR DISTRIBUTION?
Distribution payouts go out every month if there are positive profits. When we close out a fund completely, distribution payouts are within 60 days of closing sale.
WHAT ARE THE RISKS INVOLVED?
Our offerings under Rule 506(c) are for accredited investors only.
Owning investment properties is a relatively safe investment. Nevertheless, real estate investors can never 100% guarantee a profitable investment. The most common risks associated with real estate investing should always be taken into consideration before buying a rental property.
Smart and successful real estate investors conduct a thorough real estate market analysis in addition to a rental property analysis to avoid these risks. This includes studying the market economy, property inspection, computing expected expenses, and so forth. This gives them the ability to know when, where, and for how much to buy and sell, which ultimately helps them hedge against major losses.
Of course, this doesn’t happen overnight. This is the result of years spent in real estate investing and learning from past mistakes. Thus, if you’re on your way to becoming a real estate investor, don’t be discouraged and head over to Pries Capital – An Investment Firm to start investing now!
Real Estate Statistics
- In 2018, over 100,000 investors participated in funds.
- The average size of a real estate offering was $3 million.
- Passive investors came up with 80-95% of the initial capital investment.
- Firms came up with 5-20% of the initial capital investment.
- Investors received a preferred return ranging from 5-10%.
- The average preferred return was 8%.
- Firms netted an acquisition fee of .5 to 2%. The average acquisition fee was 1%.
- Firms netted a property management fee between 2 and 9%.