Find the information you need to make smart investing decisions.
Click the “Get Started” button anywhere on the website to launch the SageStreet investment platform. Click the ‘sign up here’ link at the bottom and follow the prompts to set up your account. You can also visit invest.sagestreet.com to get started.
Fill out the contact form or send us an email directly to email@example.com with any questions or concerns.
Accredited investors have access to all investments on SageStreet, 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:
- 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.
- Have a net worth of more than $1 million (individually or jointly), excluding the value of a primary residence.
- Be a business in which all the equity owners are accredited investors.
- 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.
At this time, non-accredited investors are unable to invest in deals on the SageStreet platform.
Projects featured on SageStreet 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.
Generally, an entity will satisfy the SEC’s definitions if it either:
- Has total assets in excess of $5,000,000 and has not been formed for the purpose of participating in a specific investment or,
- All members/owners of the entity are accredited investors.
SageStreet uses a third-party vendor, North Capital, to verify accreditation status for our investors. There are two options to approve accreditation.
- 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.
- 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 SageStreet account. Download the template.
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.
The investment manager for all SageStreet funds is Sage Equity Partners LP. Sage Equity Partners LP is currently an Exempt Reporting Adviser, as it provides investment advisory services to private funds under $150 million.
SageStreet 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.
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.
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 firstname.lastname@example.org.
SageStreet is committed to keeping you informed on your investments. Investors should receive quarterly updates approximately 30-45 days post quarter-end.
You can change your password by clicking on the “Request Password Reset” icon at the bottom of your investor portal.
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.
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.
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.
Accredited Investors who are approved to join SageStreet 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.
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. SageStreet implements a strict due diligence process, with the goal of reducing overall risk.
In short, no, investments found on SageStreet 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 SageStreet with the intent or expectation to resell your investment.
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.
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.
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:
- Distributions of cash flow from operations over the hold period, and/or
- 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.
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.
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.
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.
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.
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.
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.
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.
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.
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 SageStreet 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.
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 SageStreet 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.
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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