That depends. Our offerings are released under rule 506 of the 1933 securities act. Some of our offerings are released under rule 506(b) which allows for both accredited and non-accredited investors and some are released under rule 506(c) which allows for accredited investors only.
While we don’t do background or credit checks, all investors are required to fill out our investor questionnaire which enables us to identify our non-accredited investors so we can present offerings they are eligible to participate in.
An accredited investor is a term used by the U.S. Securities and Exchange Commission (SEC) under Rule 501 of Regulation D. In order to qualify as accredited, an investor must accomplish at least one of the following:
Earn an individual income of more than $200,000 per year, or a joint spousal income of more than $300,000 per year, in each of the last two years and expect to reasonably maintain the same level of income.
Have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
Be a bank, insurance company, registered investment company, business development company, or small business investment company.
Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
Be a business in which all the equity owners are accredited investors.
Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.
Prior to getting approval to invest in a private offering from Spartan Investment Group, you will be required to show that you qualify as an accredited investor.
There are many methods to qualify as an accredited investor, including providing supporting documentation of your assets or income, providing a letter from a licensed professional certifying your status as an accredited investor, or allowing third-party vendors to verify your status as an accredited investor.
In some instances, a detailed bio stating your source of wealth, employment history, and income may also suffice.
To upload this information in advance, please go to the top right hand corner of your screen under your name, and select “settings.” This should bring you to the “Investment Accounts” section. Click on the appropriate account for which you want to upload your letter, W2, bank account statement, trust document, or operating agreement. Scroll down to “Accreditation Status” and click “edit”. At the bottom of this page you can click “choose file” and upload your form here.
For trusts, LLCs and other entities, we are required to collect the relevant legal agreements to ensure you are legally permitted to direct investments.
For additional information about individual and entity accreditation requirements, please see the SEC website to review their guidelines (http://www.investor.gov/news-alerts/investor-bulletins/investor-bulletin-ac…) or reach out to firstname.lastname@example.org
Not at this time.
Yes. We set up single asset LLCs for each of our offerings which allow for SDIRA investors.
Once you’ve decided to partner with Spartan, we set up an initial one on one call to get to know each other better. We like to get to know our investors on a personal level (it’s one of our core values) so that we can offer them investment opportunities that meet their criteria.
We currently offer equity positions in real estate investments. Right now we are focused on self-storage, single-family home renovations, raw land development into single-family homes, and condo conversions.
It varies on the project, but generally between $25,000 - $50,000 is the minimum.
No. Our sponsorship/management fees come from the expenses of the project, not your investments. Also, we only pay ourselves after all investments and projected returns are paid out.
We accept wire transfers, and the wire instructions are at the end of our subscription agreements.
Investments are usually closed on a first-come, first-served basis; although Spartan Investment Group reserves the right to reject any particular investment. Once the total listing amount is reached, the listing is closed.
As long as you are an investor, we will send you a Form 1099 or a Form K-1, as appropriate, by approximately mid-March of the following tax year.
Similar to a 1099, a Form K-1 is an accounting of the tax income for the year. Each investor receives one per investment. Form K-1s are most commonly used in partnerships and in real estate ownership.
If you are interested in learning more, sign up on our website and we’ll include you in our offering presentations and you will have access to the offerings posted on our website.
Each project is different and the projected timelines are presented in the offering documents.
While we are currently building out our investors portal for direct access to project updates, we currently set up project conference calls, webinars, and use email to update our investors. The frequency depends on the project timeline and where we are in the project.
Tax implications may vary according to investment. Generally, investors can expect to receive a 1099 for a majority of investments on the platform. However, investors should consult their independent tax advisor for specific questions regarding tax treatment.
We work with tax and securities attorneys that review all of our documents prior to being released.
No investments are completely secure. While we have a very thorough due diligence process designed to mitigate as many risks as possible, there are many factors that are simply outside of our control. We recommend consulting your investing team when assessing the risk of investing in speculative real estate investments.
Generally, no. While we understand circumstance arise that require our investors to exit offerings before they conclude, we cannot guarantee investments will be available prior to the closing of the offering. We can commit to trying to replace investors within a current offering, but any expenses occurred in the replacement are the responsibility of the exiting investor.
To date, we have raised over $8.5M in investment funding.
While each Spartan Investment Group investment has a unique investment strategy, our broader investment goal is to identify high quality value add or opportunistic opportunities with superior risk-adjusted returns. We only move forward with opportunities that provide enough profit margin to meet our risk tolerance ratios and provide buffers for market corrections.