Below are some of the most asked questions about HBCU Realty projects. If you have questions that you don't see answered below, click here to send us a message and we'll get your questions answered for you.
What does my initial contribution get me?
Your initial contribution gets you a per-determined equity ownership stake in the property listed above. This means your quarterly payout, after expenses, will be equal to that same percentage, of the rent revenue. The legal terms are that each property will be a legal partnership, and each person that contributes will be equity sharing partner. You are able to become a partner in the name of you LLC. This means you can use your LLC for your equity share.
How do I become a partner?
Visit the Become a Partner page at www.housingjv.com
What information will I receive prior to becoming a partner?
Prior to becoming a partner, we can share some details about the project. The specific details about the property, including the address, square footage, etc will be provided to you once you become a partner. Due to regulation exemptions being utilized, we are not able to provide specific details prior to becoming a partner.
How long will the renovation process take?
Renovation time varies per property and per contractor. We will continuously communicate the renovation timeline with you every step of the way. It could take anywhere from 60 to 120 days.
Is their risk associated with the investment or is it guaranteed?
As with all investments there is level of risk to be weighed against the potential return to consider when purchasing shares of any kind. However, our partners investors receive an 8% preferred return. Financial returns vary per project.
What is Crowdfunding?
Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet. In a word, crowdfunding makes use of the easy accessibility of vast networks of friends, family, and colleagues through social media to get the word out about a new business and attract investors. Crowdfunding has the potential to increase entrepreneurship by expanding the pool of investors from whom funds can be raised beyond the traditional circle of owners, relatives and venture capitalists.
Are partners able to view the properties?
Yes. With any of the properties, you are able to visit the property after you have become a partner. With occupied property we would have to give notice to the residents about any visits.
How Often Will I Be Paid?
Your initial contribution as well as quarterly income would continue for however long you own the property.
Do you become a partial owner of the property where you get a portion of the monthly rent?
Contributing partners become equity sharing owners of the LLC. The property for this project will operate as an LLC. Meaning, if 7 people become partners on this project, then those 7 people's names will be on the ownership document for the property and those 7 people will receive a quarterly rental income check.
Will each property have a property manager? If not,
We will have property management for this property. The property management company will handle all repairs, evictions, etc.
How will repairs be paid for?
Our financial model projects and escrows for maintenance and repairs and for reserves to account for additional expenditures. Partners will not be required to submit additional contributions after the initial investment.