Q?What is your minimum contributed capital investment requirement from passive investors?

We look at contribution limits on a case by case basis relative to the fund in which the investor is subscribing, however we have historically limited contributed capital to no less than $25,000 per investor.

Q?Are investors able to invest through self-directed investment accounts?

Yes.  We have had prior investors choose to fund their contributions through self-directed accounts.  Self-directed accounts serve as a good source of equity for private investments in alternative asset classes.

Q?What is the average term of your funds?

We look at the fund term on a case by case basis, and it depends on the specifics of the underlying properties within the portfolio. However, as we tend to look for opportunities that offer a way to add value, this value-add process normally takes some time, with typical fund terms of 5-10 years, unless we’re able to realize improvements earlier and we feel it offers the most favorable return to the investor to close the fund at an earlier time.

Q?How often do you make distributions?

Our investment strategy is tied to the maximization of returns to our investors. Sometimes, this means that rather than offering distributions to our investors, they are better served through reinvestment of current cash flows, amplifying returns. In these cases, distributions are most likely delayed as we trade the benefit of distributed earnings with increased incremental return on investment. There are cases where we’ve added significant value to the investment and are able use bank financing in order to tap a portion of this added equity and distribute it to our investors. However, aside from these instances, once the acquisition has reached its optimal state, and it does not require additional investment, we attempt to distribute allocated profits on a quarterly basis.

Q?Do you invest in areas outside of New York or in real estate asset classes outside of site-set housing?

We invest in locations and asset classes where we are confident that we can offer favorable risk-adjusted returns. We feel the site-set housing sector offers an excellent risk/reward relationship as compared to other asset classes; we point out the benefits of site-set housing in other areas of our site.

Geographically, the state of New York allows us to realize some economies of scale through affiliated companies, and we have a very strong local and regional knowledge base specific to the New York state area. New York also has a large opportunity pipeline of site-set housing that meets our investment criteria, so unless the fundamentals of a particular deal outside of this geographic market work, we continue to focus our investments within the state.

Q?What type of communication is offered to the investor about their investment?

We keep our investors informed on the performance and operation of the investment by distributing quarterly reports and annual budgets. The quarterly reports provide commentary on operational aspects of the property, and they are accompanied with financial reports that provide insight on the performance of the investment. We also work with a regional tax accounting firm in order to make sure all appropriate tax filings and Form K-1’s are distributed to our investors on time each tax year.