MacroCrowd is a private, secure and uncomplicated way for qualified investors to discover, analyze review and invest in commercial real estate. MacroCrowd brings rigorously-vetted real estate properties to potential investors, along with the ability to appraise details of the property, review legal documentation and perform other forms of due diligence. MacroCrowd lets you make knowledgeable inves
tment decisions on a virtually limitless platform of financial opportunity. MacroCrowd investments are units of a limited liability company (LLC). Each property offered includes a single purpose formed solely for the ownership and operation of that asset. LLCs are often the ideal method for real estate ownership since they bring investors the advantage of limited financial exposure. They also offer pass through taxation status and are reasonably flexible in the event that liquidation of ownership becomes necessary. How does MacroCrowd execute documentation? Your investment is initially posted on our platform for your review. At that time when they become available, you will be able to examine draft documents. All signatures are electronically implemented, with a fully-executed electronic version stored in your investor dashboard. How is communication with the operators accomplished? An online Question and Answer section and email list is provided for each investment. Operators that invest with MacroCrowd are also required to report on a quarterly basis at minimum. Are there investment limits with MacroCrowd? There is no maximum investment amount with MacroCrowd. Our investment minimums begin at $1,000 USD. Please be aware that MacroCrowd reserves the right to alter this at any time. Does MacroCrowd function as a Real Estate Investment Trust (REIT)? MacroCrowd differs extensively from a Real Estate Investment Trust (REIT). With MacroCrowd you own units of an LLC solely devoted to the ownership and operation of one asset. REIT shares are not the equivalent of physical ownership of real estate. They function in a fashion similar to a derivative of real estate, since you own a portion of the company that owns the real estate. You are not only at the mercy of that company management decisions, you are bound to their strategy, the properties they purchase, and ultimately to the stock market’s constant instability. When you are a MacroCrowd investor, you control your own portfolio, select the assets you invest in, and in due course own the real estate itself. MacroCrowd is not a product of financial engineering that can be decimated by the uncertainties of the stock market. What types of investments does MacroCrowd offer? MacroCrowd makes investments in development, hotels, multifamily housing, retail stores, office buildings, and industrial properties available to you. These arrangements leverage the micro-market know-how of our partners and their ability to create substantial deal flow. What methods of screening investments does MacroCrowd employ? We pre-screen all of our operators to make certain that all offering on our platform are legitimate. We insist that all offerings include a considerable amount of information to make all purchase decisions informed ones. In addition, we require all operators to presents all risks, as well as opportunities, for all investments. How many investors can participate in each offering? MacroCrowd allows an unlimited number of investors to participate. How are requirements for additional capital accomplished? Each investment is accompanied by a comprehensive business plan and projected budget. It is our responsibility to provide for sufficient reserves of capital funded at the beginning of the transaction or made necessary by a capital call later on. Capital call requirements can vary by operating agreements and are listed on each investment. In today’s current financing market, when dealing with value add or transitional investments, most lenders provide for future fundings of loan proceeds so that additional tenant improvement and leasing commission (TILC) costs are covered. How will MacroCrowd update me on my investment? Our investors can use their desktop, tablet or smartphone to receive and review real time updates to their investments in their online portfolio on their dashboard. Our operating partners are required to report on the status of the assets at least quarterly. These reports must include leasing updates, financial performance/variances and any capital improvements or requirements. As an adjunct to real time updating, we encourage our investors to post to the Q&A section of the ongoing investments. When I invest with MacroCrowd what are my tax implications? MacroCrowd cannot offer tax and/or legal advice. We do suggest that you consult with your attorney and accountant on the legal and tax implications of MacroCrowd investment. However, for general information only, investing in a Limited Liability Company provides benefits that include a pass-through taxation entity, limited investor liability as suggested by the label LLC, more efficient formation and continuing reporting requirements, and increased flexibility in allocations of profits and losses than other investment enterprises. Who is responsible for decisions in an LLC? Each investment offered by MacroCrowd is managed by a MacroCrowd-controlled LLC who acts as the “Managing Member.” This individual has sole and exclusive rights for the management, control and performance of the affairs of the LLC. These rights include, but are not limited to, fund distribution to investors, decisions regarding sale and leasing, operational decisions and reporting. Who is responsible for the management and maintenance of the asset? Each asset is the responsibility of an experienced asset operator with the background needed experience to operate the asset at its peak and provide solutions. The operators are experts in the appropriate asset class, from apartment building to industrial facility. In addition, the opportunity to review the operator’s past investment experience and background prior to the investment will be made available to you. What fees accompany investment with MacroCrowd? Our fees are dependent upon the type of investment and how complex its organizational structure is. We experience a return on the profits when the distribution payments are made as well as when an asset is sold, so we don’t get paid unless you get paid. We make sure the investment opportunity we present to you is solid and will be successful because our bottom-line interests are aligned with yours; we make money when you do – it’s that simple. Furthermore, once profits from the sale or distribution are given, these monies cover the administrative and legal costs of arranging the investment and the continuing reporting and management of the investment. Fees differ per property and are listed in the operating LLC agreement for your review. MacroCrowd may also use an affiliated operating company to supply asset management for the ongoing optimization of the investment. When will I see a return on my investment? Real estate investments typically operate on a longer time-frame than more liquid stocks or bonds. Each investment opportunity is accompanied by a thorough business plan that outlines the time-frame necessary to realize the investment. This may vary anywhere from one to ten years. The nature of the units in the LLC investment are considered “restricted shares” according to SEC guidelines and may not be sold openly to the public. It is our intention at MacroCrowd to either partner with an established secondary market provider or develop a proprietary secondary market for these securities to provide the ultimate flexibility to investors. Can you describe the MacroCrowd investment process? All of our investors must pass our initial screening process to qualify for accredited, non-accredited, or foreign status. They are then able to examine potential investment opportunities when logged in to our platform. Our platform presents all due diligence items, property level financials, proposed deal structures and business plans, investment documents (including operating agreement, an investor questionnaire and subscription agreement) as well as detailed information on the operating partner. Once the investor considers the investment attractive enough to add to their portfolio, they simply click the “invest” button. They will then be asked to execute the required documents online with a secure e-signature process to secure their position in the investment. We present our investors with several options to execute the transfer of funds into a secure third party escrow account. All funds are held in this account until the investment is complete. Monies are then transferred securely to the investment fund and the transaction is closed since a new entity takes ownership of the asset. If the opportunity fails to reach its full funding amount, all funds will be returned to the investors.
