Here is Part 2 of our Q&A Interview for New Investors.
How long will the investment be?
Holdfolio’s goal is to own the property long term to collect rental income & take advantage of the benefits of owning real estate. It is in the best interest of everyone that Holdfolio sells the property at the right time, this event may occur sooner or later depending on market conditions, performance factors, and desires of the investor members. If it is not the right time to sell, then Holdfolio will continue to hold onto the property for cash flow.
Do investors share in any of the tax benefits of owning real estate?
Yes. The company will be writing off depreciation on the property and all other business expenses related to the operation of the rental properties. So, the taxable income you make from this investment will be reduced by these tax benefits. However, this will vary upon the opportunity.
What makes Holdfolio different from other crowdfunding platforms?
Holdfolio is operated by full-time real estate investors, no middlemen meaning all the opportunities on the platform are solely sourced by the company.
How do the legal agreements describe the relationship between investor members and the manager?
For the most part, the manager retains the right to make all day to day decisions, however there are certain decisions that will be made through a vote of the investor members in order to reach a majority consensus. The partnership is facilitated by a limited liability entity & the manager is the responsible party for the acts of the company.
When are profits distributed to investors?
Holdfolio disburses profit to investors quarterly. This means that you will receive profit from your investment deposited directly into your account during the first couple weeks of January, April, July, & October. To date the average return to partners is 10.17%. *This return does not take into account possible increases or decreases in the value of the investment. Further, the performance of our portfolios in the past does not guarantee that they will be successful in the future. More information about our track record is available to registered users.
How do I get my invested capital back?
After Holdfolio holds the property to collect rental income, the property can be sold for a profit or refinanced with long term debt. In the event the property is sold, you will receive the return of your invested capital plus the profits from the sale. If the property is refinanced, you will receive a return of your invested capital & still keep your interest percentage in the company. It is also possible for you to sell your ownership to recoup your investment. In this scenario, either Holdfolio can purchase your ownership, or we can assist in a match-making effort to find someone interested in purchasing your ownership. Holdfolio retains a first right of refusal to purchase your ownership should you decide to sell. In general, you cannot sell your ownership within 12 months from your initial investment date.