How are RealAssets™ investments structured?
Every transaction is structured on a risk adjusted basis. The RealAssets™ team follows a proven and detailed due diligence process on all potential transactions. Under this process and its guidelines, the investment team fully underwrites the acquisition and tailors a suitable financial instrument that will maximize returns while mitigating risk. This is then passed on to the investment Committee for approval and to the board for very large transactions. Following of this process results in an "investment grade" offering for investors on the RealAssets™ platform for its registered members.
Does RealAssets™ directly invest in the offerings?
Yes, RealAssets™ Corporation co-invests in all transaction along with their investors. The investment instrument and terms are the same as those that the investors receive. We at RealAssets™ see it as important to be aligned with our investors on all transactions.
What size transactions does RealAssets™ pursue?
We will analyze transaction sizes of between $10,000,000 and up with a preference for larger properties of up to $65,000,000. Once we believe that investment meets RealAssets™ investment grade criteria, we will then attempt to transact on a structure with the local sponsor/operator, that benefits our investors.
How frequently are RealAssets™ transactions available for investment?
We use a “best in class” approach on incoming investments. Although we get a huge volume of investments in our pipeline, not all are “investment grade”. Thus, our investment may not approve of majority of the transactions and allow only the best transactions to surface to the top. Thus, sometimes our offering flow can be subdued for valid reasons such as micro-economic, macro-economic, and risk appetite. We like to offer our investors as many quality opportunities as possible but we are more focused on the quality of investment not the quantity.
What is RealAssets™ typical hold period?
Each investment is independent but we aim for a 3-7-year investment term on equity or preferred equity investments and 2-4 years for convertible debt or mezzanine financing. The hold period also depends on the asset type, location, instrument and real estate life cycle analysis, and depending on the assets overall independent forecast.
How do I get started as an investor on RealAssets™?
You can get started as a quality investor by creating an account here. RealAssets discerning investment management site as compared to a crowdfunding site. It attracts quality high net worth investors, family offices and small institutions on the platform. We make sure that the investors have sufficient liquidity, net worth and dry powder to make investments. The investment process is steered by our online platform. You will be required to provide or verify some applicable information, as well as to make the necessary acknowledgments electronically.
What are the terms of a RealAssets™ investment?
The terms of each investment on RealAssets™ are specific to a specific offering. All terms and details will be in on your portal under the “offerings” tab. Investors are encouraged to read all details of the offerings.
How will I be updated on the progress of my investment?
The RealAssets.com platform provides direct communication with investors, including ongoing reporting via both email and online. We provide updates on the status of your investment, as well as the delivery of tax filing documents and other materials.
When can I expect a return on my investment and how will it be distributed?
Projected returns and distributions will be specific to each offering. Annual distributions will typically be quarterly, final exiting funds will typically be distributed in 30-60 days’post disposition. These funds will be deposited into the investors requested account.
Can international investors invest?
Yes, global investors are welcome. RealAssets™ will not be responsible for currency fees or charges received by or distributed to investors.
What is the average and minimum investment?
The average investment amounts for family offices and small institutions are targeted at between $250,000 to $500,000. However, the minimum investment amounts for individual investors where applicable may vary depending on offering size, but typically the minimum investment amount for individual investors will be between $25,000 and $50,000.
Can we as investors diversify our investment across multiple transactions?
Diversification is pragmatic and available to all members at RealAssets™. We plan to use Artificial intelligence, smart algorithms analytics and machine learning to recommend certain investments based on investor profile and investor interests and risk appetite as indicated to RealAssets. Our platform allows investors to tailor and track their own real estate portfolio on the RealAssets™ platform. There is no limit to the amount of investments in a member’s portfolio.
REAL ESTATE OPERATORS
What does RealAssets™ look for from its deal local real estate operating partners?
Our Operating partners are vetted thru our operator curation process. We choose best in class operators in our target markets. These operators have a credible and experienced senior management teams, robust track records, and demonstrated execution on similar investments to the target investments we make. We look for alignment of interest from the operators via both capital and long term staying power. The RealAssets™ platform is also flexible and entertains joint venture structures.
What geographies are of interest to RealAssets™?
We are currently focused on US markets and have a select list of counties that have job growth and new business growth. We try and look for value in the top 20 counties in America, and surrounding regions within commutable distance from the top 20 counties, where we see lower risks and more opportunity.
What types of terms does RealAssets™ negotiate with local real estate operators and sponsors?
In most cases our local real estate operating partner controls the day-to-day management of the asset, while the RealAssets™ platform shares in major decision rights. RealAssets is usually able to customize the structure investments given the needs of each transaction. We customize the interest rates, coupon (cash pay or PIK), maturity, subordination, security and equity participation to provide superior risk adjusted returns to our investors on the platform. We prefer deals wherein the local real estate operator issues equity to RealAssets with profit upside, or issues preferred stock, or convertible debt to a RealAssets LLC. We like Preferred Stock since it also (usually) has a fixed dividend/interest payout. Convertible Debentures also work well for our investors, as they are a type of loan issued by a real estate operator to RealAssets, that can late be converted into stock.
Am I allowed to resell or transfer my investments?
No, this will be an option in the future.
Is the RealAssets™ platform secure?