FAQs

Operational FAQs

How do I set up an account?

Click on the “Log In” button on the Sage Street header or “Start Investing” on a specific opportunity and follow the prompts to set up your account. You can also visit Invest.SageStreet.com to request an account.

How do I contact SageStreet?

Fill out the “Contact Us” form or send us an email directly at Info@sagestreet.com with any questions or concerns.

Who is eligible to invest through Sage Street?

Accredited investors have access to all investments on Sage Street, subject to approval and some legal limitations.

To qualify as an accredited investor, you must meet certain thresholds as defined by the Securities and Exchange Commission under rule 501 of Regulation D. Specifically, you must meet one of the following criteria:

  1. Earn an annual income per individual of over $200,000 per year ($300,000 per couple) with the expectation of maintaining such level of income in the future.
  2. Have a net worth of more than $1 million (individually or jointly), excluding the value of a primary residence.
  3. Be a business in which all the equity owners are accredited investors.
  4.  Hold a Series 7, Series 82, or Series 65 financial services license and is in good standing.

For more information about Accredited Investors, please visit SEC.gov.

Can non accredited investors invest in a SageStreet opportunity?

At this time, non-accredited investors are unable to invest in deals on the Sage Street platform

Projects featured on Sage Street are done so, in most cases, pursuant to SEC Reg. D 506(c), which allows for general solicitation but is restricted to accredited investors. You can learn more about SEC Regulation D on the SEC’s website: https://www.sec.gov/answers/regd.htm.

I am investing through a business entity (i.e. a trust, LLC, partnership or corporation). How does an entity qualify as an "accredited investor"?

Generally, an entity will satisfy the SEC’s definitions if it either :

  1. Has total assets in excess of $5,000,000 and has not been formed for the purpose of participating in a specific investment or,
  2. All members/owners of the entity are accredited investors. 
What types of documents are required to verify my accredited investor status?

Sage Street uses a third-party vendor North Capital to verify accreditation status for our investors. There are two options to approve accreditation.

  1. The majority of investors are asked to supply to their SEC-qualified, verified copies of W-2s, or tax returns, to verify annual income, and/or account balance statements to verify net worth, but additional requirements may vary depending on the complexity of the investor’s financial situation.
  2. Or an investor can provide a letter from a qualified, independent third-party verifier, such as your CPA, attorney, or wealth advisor. You can then upload this letter to your Sage Street account. Please reach out to info@sagestreet.com for a copy of the template.
How long should I expect the verification process to be after I submit the requested documents?

Review of your accreditation documents can take up to 3 business days. If we require any further information or documentation beyond what you have provided, our team will contact you.

Please note, follow up requests could cause the verification of your accredited status to take longer than 3 business days.

Is SageStreet regulated by the SEC?

The investment manager for all Sage Street funds is Sage Equity Partners LLC. Sage Equity Partners LLC is currently an Exempt Reporting Adviser, as it provides investment advisory services to private funds under $150 million.

Is my information confidential and secure?

Sage Street takes the security of its information, infrastructure, applications, and data very seriously. Please visit our Privacy Policy to learn more about our privacy and security.

How are contributions/investments made and distributions paid?

Sage Street processes Electronic Funds Transfers (EFTs) as an efficient method to receive electronic deposits from investors, to purchase investments and to issue distributions to investors. EFTs are processed through the following vehicles: The Automated Clearing House (ACH) and the Fedwire

Can an investment be oversubscribed & if so, what happens?

General Partners have the sole discretion and right to approve, deny and modify allocations. Should an investment become oversubscribed, the general partner can begin a waitlist for investors.

Can the investors interact with the operating partner or sponsor?

Due to the composition of our investing structure, investors are not allowed to interact with operating partners. For any questions or concerns regarding your investments, please contact us at info@sagestreet.com.

How does Sage Street update investors on their investments?

Sage Street is committed to keeping you informed on your investments. Investors should receive quarterly updates approximately 30-45 days post quarter-end.

How do I change my password?

You can change your password by clicking on the “Request Password Reset” icon at the bottom of your investor portal.

Investing in SageStreet 

What is an alternative asset?

An alternative asset investment is a financial asset that does not fit into the traditional stocks, bonds, or cash categories. Alternative assets often refer to private equity and real estate among other asset classes. As alternative assets are not traded on the public markets, they are often less liquid and require a longer investment period.

What are the benefits of investing in alternative assets?

Alternative assets provide an opportunity to diversify your portfolio and risk and return profiles by accessing a larger pool of investments. Additionally, with a low correlation to the stock market performance, alternative assets can potentially provide a hedge against inflation with the goal of reducing overall risk.

What is the minimum investment allowed?

This varies by investment and is determined at the discretion of the General Partner. Please create an investment account and verify accreditation for more details regarding a specific investment.

Are there fees for investors?

Accredited Investors who are approved to join Sage Street can browse the marketplace for free. For those accredited investors who choose to invest, there are fees associated with each investment. The fees depend on the type of investment and the nature of the transaction. In addition to administrative and legal expenses, the fees will cover the ongoing reporting and communications for the investments. You can find the specific fee structure for each deal when you browse through the respective investment opportunity.

Are alternative investments risky?

Yes. Similar to investing in the stock market, there is no guarantee when you are investing in real estate. The real estate market has economic cycles, and it is difficult to know how and when the economy will change. Sage Street implements a strict due diligence process, with the goal of reducing overall risk.

Is my investment liquid?

In short, no. Investments found on Sage Street are not like those traded on the public stock market and restrictions vary by individual investment and can be restrictive. You should not invest with Sage Street with the intent or expectation to resell your investment.

What is a capital contribution?

A capital contribution is the amount of money invested into an opportunity by investors. Also known as paid-in-capital, the amount of contributed capital depicts investor’s stake in the Partnership.

Return FAQs

How do investors get a return on investment?

An investor will receive a return on their investment when the operator or Sponsor distributes money. Typically, there are two types of returns that investors can receive:

    1. Distributions of cash flow from operations over the hold period, and/or
    2. Proceeds upon sale of the asset.

Distributions are never guaranteed in amount or timing, and you should carefully read the offering documents on the specific deal you are interested in to fully understand the projected distributions and what risks are involved.

Are there guarantees that a sponsor will hit the target returns?

While the goal is to achieve target returns, performance is never guaranteed, and you should carefully read the offering documents on the specific deal you are interested in to fully understand the risks involved.

 

When will I get my investment back?

Different properties have different expected hold periods. A hold period is the anticipated time investors will be involved with the investment until the underlying property is re-sold or the loan on it is paid off. It is important to read the offering documents for each investment opportunity for a deeper understanding of the hold period for each investment.

What is Cash on Cash Return (COC)?

A cash-on-cash return also known as COC is a rate of return calculation that provides the cash income earned on the cash invested, commonly known as cash yield. COC can be calculated by dividing the investment’s pre-tax cash flow by the total cash invested. COC is typically used in a real estate investment.

What is Internal Rate of Return (IRR)?

Internal rate of return, or IRR, is a metric used in financial analysis to estimate the profitability of an investment. The Internal Rate of Return (IRR) is the rate at which each dollar you invest is projected to grow for each period it is invested. IRR accounts for the concept of the “time value of money,” the fact that each dollar received and reinvested today is worth more than a dollar received and reinvested next year.

What is Multiple on Invested Capital (MOIC)?

Multiple on invested capital, or MOIC, is a measure of the total return paid to an investor. It is calculated by dividing the cumulative distributions received by the original invested capital.

What is a preferred return?

The preferred return, or hurdle rate, is a profit distribution preference whereby profits, either from operations, sale, or refinance, are distributed to one class of equity before another until a certain rate of return on the initial investment is reached. Typically, this hurdle rate must be reached by returning capital to the investors first before the operator or sponsor can begin receiving their promote or carried interest.

What is a promote or carried interest?

The promote, or carried interest, is essentially a profits interest that is significantly greater than a sponsor or operator’s capital (investment) interest. Typically, an operator or sponsor cannot begin receiving a promote until investors have received their disclosed preferred return. Investors should carefully read the offering documents on the specific deal they are interested in to fully understand the fees and promote structure.

Tax FAQs

What is a K-1?

A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions, and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.

When can I expect my K-1?

While we recommend each sponsor or operator  send out K-1s by the 15th of March annually. With the complex nature of these forms, there is no guarantee that all K-1s will be received before tax deadlines. We do recommend that investors discuss filing tax extensions with their tax advisor.

Can I invest through my self-directed IRA?

In short: yes! As long as the sponsor accepts them, and the investor’s custodian approves the investment. Provided that there is sufficient time before the closing, many Sage Street sponsors are equipped to accept investments from a self-directed IRA account. The process is straightforward but may take up to 10 business days for the custodian to fully process and remit funds. For this reason, sponsors who have an expedited closing date may be unable to accept IRA investments. Inquire of your current custodian.

Will I have exposure to UBTI?

Unrelated Business Taxable Income (UBTI) refers to income that is produced by a tax-exempt entity by the ways of taxable activities. Many of the offerings or investments offered by Sage Street utilize debt financing. It is expected that investors will have some UBTI exposure. In general, most business or trade activities will be subject to UBTI. Please reach out to your tax preparer or CPA for additional information about unrelated business taxable incomes.

Does SageStreet provide any tax advice?
None of SageStreet, LLC or its affiliates provide tax, legal or accounting advice.

FAQs material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.

You should consult your own tax, accounting and/or legal advisors for advice specific to your situation.

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