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The time between deciding to invest and actually getting to invest

Have you ever wondered how quickly you can invest in something?  Why wait to start earning all that cash, right?  Well, there are actually some rules that we have to follow that are set by the Securities and Exchange Commission (SEC).  There have been too many cases where honest, hard working citizens have been bilked out of their hard earned money by hucksters selling a false bill of goods that is “only available for a limited time”!

So, for any sort of security investment, the SEC has enacted rules to protect you, the investor.  For an investor to be able to invest in real estate as described on this website, the investor and the asset manager (us) must have a “substantial business relationship” in place before we are in the process of procuring real estate.    Now, let’s make that easier to understand.  A “substantial business relationship” means that you, the investor, are aware that we are ‘real estate asset managers and offer investment opportunities’, and that this relationship is more than just an incidental relationship.  We’ve had the chance to really talk about what we do and you have a good understanding of it.  For us to be in the “process of procuring real estate”, that means that we have a legal contract in place to buy a property.  So: For an investor to even be eligible to invest in an opportunity with us, we have to “know” you before we even have an opportunity officially in sight.  How long will it be between when the time that we create this relationship and the time that we have a legal contract in place to buy the next property?  There’s no answer to that, but we are always looking for new opportunities!

For large real estate purchases like we do, there is a substantial amount of time between the official “signing of the contract” and the actual closing date, where purchase money changes hands and future income starts to accrue.  Typically anywhere from 2 months to 3 months, or more.  There are many, many things that we must be do in this time period to insure that the investment has the greatest possible chance of being what we expect it be.  If any of these steps reveal that the investment isn’t as was expected, the whole thing could “fall apart”.

In practical terms, as soon as we have an official “signed contract”, we will make suitable investors aware that this opportunity will (hopefully) be available in 2 or 3 months.  The investors can then prepare their funds and if everything works well and all of the steps are positive, the investment money gets put in escrow near the closing time and the investment will officially “begin” on the day that the closing occurs.