Frequently Asked Questions
ABOUT RE/DEV CROWD
Yes they are different. Real Estate Investment Trusts are set up as companies that operate, own or finance income producing properties. Their primary objective is to make money off of fees from the transaction. Most REIT managers do not invest their own money along with the investors and they pay substantial fees to advisors to sell their investments.
RE/DEV Funds are set up as LLCs which allows all tax benefits to pass on to the investors. RE/DEV invests along with investors; do not pay advisors to sell the investments and our primary objective is to make money after the property sells.
Our interests are in alignment with our investors so we invest in every project.
We invest in single family or townhome subdivisions and condominium conversions. We develop these types of projects because they have historically the largest returns by far and they provide homeownership opportunities for the buyers so they can also build wealth through homeownership. Developing land has typically been labeled as an opportunistic strategy since it typically used the most leverage but if you eliminate the leverage you reduce the risk tremendously and you increase the ROI potential.
We invest in Massachusetts because we know this state intimately and have been involved in over 1 billion in real estate transactions here.
None. We are an equity investment platform and we don’t believe in debt. Can you imagine what your life would be like without the car payment, mortgage payment or credit card debt? Debt is ruining this country and many peoples’ lives so we avoid it like the plague. It’s pretty simple we don’t like foreclosure so if we don’t have any debt we can’t be foreclosed which reduces the risk significantly for everyone. Oh, by the way, it also increases the ROI another substantial plus.
We employ the highest standards available for security both externally and internally. Our data is encrypted in transit and at rest.
The minimum investment on the RE/DEV platform is $1,000. We believe everyone should be able to build wealth from where they are. We do not have a maximum limit for accredited investors.
Our philosophy is different. We don’t want to hurt people or want investors to lose their money. We want to help investors build wealth and build communities. Most investment platforms are Residential Fix and Flip or Commercial Multi Family /Office. Our platform offerings are for single family, town home or condominium development.
Residential Fix and Flip is great if the project goes according to plan however if it doesn’t the lender is usually ok but the sponsor loses money. Even in a foreclosure the lender most likely will get their money after a process but again we don’t want to foreclose on anyone or want anyone to lose money.
Commercial Multi Family/ Office are great for cash flow investing however it doesn’t benefit the end user. The owner builds wealth while the tenant pays and doesn’t build wealth. Most of these projects are leveraged so there is always the possibility of foreclosure or the project not being completed.
We believe providing homeownership opportunities though developing single family, town home and condominiums is a win for everyone. We don’t borrow money so we have flexibility if there is a cyclical market downturn. We could easily rent single family homes for the highest market rates until the cycle turns and then sell or we could stop the production of new units until the market rebounds. Either way our investors’ capital is protected.
RE/DEV Crowd (short for Real Estate Development Crowd Funding) is an online real estate equity investment platform founded to develop single family, town home and condominium housing units in affluent and emerging markets in Massachusetts. The corporate office is located in Quincy, MA.
We are here to answer any specific questions related to the offering such as structure, distribution, acquisition, ect. However any financial, terms or conditions related questions please consult your financial advisor, attorney or tax professional.
No. Real estate investments are illiquid by nature and each offering has a detailed business plan which outlines the timeline for the investment. Please read and fully understand each offering carefully before making an investment.
We believe In transparency so our fees are fully explained in our Private Placement Memorandum.
Investors have 24/7 access to their investor dashboard for all account related updates. Investors will also receive detail account updates via email quarterly.
All offerings enable you to review draft documentation on the platform at any time. All documents can be signed and fully executed electronically on our secure platform on the investors’ dashboard. All tax and financial documentation is uploaded to the investor’s dashboard as well.
Yes. Investors can invest through a custodian with a self directed IRA. You can also invest with a trust, LLC or LP.
Once an investor decides to invest, the investor will be verified by a third party verification service. An accredited investor has 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 (excluding the primary residence); 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.
ACH transactions are mandatory for all investments under $25,000. For investments above $25,000 we can also accept bank wire transfers in addition to ACH.
RE/DEV Fund offerings are available to accredited investors. US and Non-US accredited investors can invest however Non US investors tax obligations may be different therefore all investors are strongly encouraged to check with a tax advisor and thoroughly read the PPM before investing.