FREQUENTLY ASKED QUESTIONS
Please find below a list of most frequently asked questions. If you have a question which is not listed here, please contact us, and we will be happy to help you in any way we can.
HOW DO I GET STARTED AS AN INVESTOR?
You can get started as an investor with ONM Properties here: https://www.onmproperties.com/contact/
The entire account creation and investment process is completed by us. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.
HOW IS THE INVESTOR'S MONEY USED?
Investor funds are used for the total acquisition cost of the property. This includes but is not limited to the actual purchase of the property, acquisition fees, legal and transaction costs, capital projects, and reserves.
DO I HAVE TO BE AN ACCREDITED INVESTOR TO INVEST?
No. We currently have investment opportunities that are open to accredited and non-accredited investors. Please register at https://www.onmproperties.com/contact/ to view our current offerings.
AM I AN ACCREDITED INVESTOR?
An accredited investor, in the context of a natural person, includes anyone who:
- earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
- has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.
In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
- any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
- any entity in which all of the equity owners are accredited investors.
In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
HOW LONG IS THE INVESTMENT?
We recommend you to consider this to be a 10 years investment, even though we plan to sell or refinance the investments in 5 years. The reason for this recommendation is to prepare the investors to have the flexibility to hold the investments longer if the market conditions are not yet favorable for the sale.
CAN I INVEST THROUGH MY IRA?
Yes, you can invest through your IRA. If you currently have a self-directed IRA, please check with your current custodian to ensure that they will allow you to place your investment with ONM Properties. If you do not have a self-directed IRA, contact us and we can recommend you
CAN I INVEST IF I LIVE IN ANOTHER STATE?
You are allowed to invest from any state.
HOW FREQUENTLY ARE DISTRIBUTIONS MADE?
Distributions are planned quarterly.
CAN I VISIT THE PROPERTY?
Yes. Investors are allowed to visit the property before investing and during the life of the project.
WHAT ARE THE RISKS INVOLVED?
As much as you would like to hear from us that “There is no risk in this investment” it would not be true. Like in any investment there is a risk involved, and everyone might lose their money.
However, I am confident in every investment we make and I invest my own money in each property alongside my investors. We also always calculate the investments conservatively to minimize the risk. We work hard to make sure out investors receive their returns, and we are there to answer any question our investors may have.
WHAT IS K-1?
As a partner in the LLC that purchases the properties, you will receive 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.
Multi-family real estate investments
Passive Income Opportunities for our Investors.
Schedule a call to learn more about OnM Properties, LLC.