We file as a 506(c) which allows us to market the offering but is strictly regulated by the SEC to ensure that all participating investors are financially able to fend for themselves and/or able to sustain the risk of loss.
Do I pay the 3rd party accredited verification fee or does Cedar Creek?
The investor pays for the fee as the certification belongs to each investor. parallelmarkets.com provides first accreditation for free It can even be used for other syndications as well.
Can I use my accreditation verification from a previous syndication?
Yes, if it has not expired. If it has exceeded expiration, you will need a new 3rd party verification. We use Parallel Markets
My accreditation verification expired. Do I need to acquire new verification?
I have my FINRA series 7 license in addition to the CFA charter, and I know the series 7 automatically qualifies me as accredited based on the most recent rule update. Can I just forward you proof of my series 7/CFA, or do I need to get the official verification?
Yes, fill out our Investor Questionnaire with a copy of your FINRA license.
Do you accept 401Ks, Solo 401Ks, 1099, IRAs, SDIRAs?
Yes; we accept Solo 401k's and SDIRAs. However, they must be represented through an LLC. Unfortunately, we do not accept the other options at this time.
Does AJ invest capital into the deals? What is his skin in the game?
Yes, AJ invests capital into the deals. He also assumes all liability by solely signing on the note. He invests his capital into the quality team finding, syndicating, and managing the deals.
What is the ownership structure?
It is a limited partnership owning equity shares based on capital contribution.
Have you ever issued a capital call?
Yes, once. Not for a negative reason though and was optional for the investors to participate. We had an opportunity through value engineering to expand rentable square footage through adding additional units.
What am I investing in?
You are investing in both the physical asset and also the cash-flowing business.
Should I invest as an LLC or an Individual?
Please consult your CPA and legal team.
What tax documents will I receive and when?
You will receive a K-1 after the close of each year. Our syndicated deals are prioritized over the rest of our portfolio. You should expect to receive your K-1 around mid-March.
*Make sure you have an updated W-9 in your investor profile
When is the first distribution?
It's safe to assume distributions will not go out any sooner than 6 months after acquisition. This is to confirm that all representations made by the seller during the purchase of the facility are confirmed to be accurate and true.
What can we expect for depreciation? What is the average annual depreciation?
Self-storage properties can have major differences when it comes to which assets can depreciate faster. For example, climate control systems depreciate faster, larger asphalt surfaces depreciate faster, etc. On average you can expect around 25% of the property can be reallocated to faster depreciation, however, we have seen up to 40%.
Based on our first 6 value-add deals and with taking the bonus depreciation in year 1, we have seen anywhere from 0.95%-1.93% in the subsequent years.
Without taking bonus depreciation, the studies indicated that the annual depreciation amounts could be anywhere between 1.67%-2.56%.
Want more information on Depreciation through Cost Segregation? Listen to the AJ Osborne Podcast - Episode 125 - The Best Real Estate Investment Tool - with Yonah Weiss, Cost Segregation Expert.
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