Invest With Us

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.

You do not. Redwoods Capital works with both accredited and non-accredited investors for most of our investment opportunities.

Yes you can. As long as your retirement funds are in an account that allows for your investment discretion. If you have a self-directed IRA, please check with your current custodian to make sure they will permit you to place your investment with us.

Investors are entitled to gift, give or inherit to another person in the name of the shares they invested. However, there is a tax difference between each investors. Please consult with your own tax advisors before engaging any transactions.

Absolutely. Investors are permitted to visit the asset before investing and during the investment horizon

Redwoods Capital is not a tax advisor and we recommend you reach out to your tax advisor to understand the effects for you. You will receive a single federal K-1 and a single state K-1 for each of your investments. We will continue to operate the assets in the most tax advantageous way possible, including the use of Cost Segregation Studies.

You will receive monthly email updates to report on financials. You will also receive a K-1 for each of you investments, anticipated to be provided by March 31st following each year in which profits or losses are earned, also securely uploaded to your investor portal.

At the management level, it is estimated the annual expense cost for the project would run 25 to 40 basis points (0.25-0.4%) based on capital contributions. With the exception of the Acquisition and Disposition Fee, at the discretion of the General Partners, all of the other fees could potentially be deferred to refinance or disposition to prioritize cash flow for investors. ● Acquisition Fee: 2% - 3% of purchase price of asset : 3% for assets under $20M, 2% for assets above $20M. ● Asset Management Fee: 1% of equity raised for asset (is likely to be deferred to refinance or disposition) ● Capital Transaction Fees : ○ Loan Guarantor Fee: 1% of the Loan Amount paid, only applied at acquisition ○ Refinance Fee: 1% of new loan size (not all properties will have a refinance) ○ Disposition Fee: 1% of sale price of asset

We have never made a capital call in our history, and we do not anticipate making any. If we did need more money, the first likely steps would be for the sponsors to add more money or to raise additional money from other sources as short term loans or as additional equity. However, should additional capital be needed, we retain the right to do so in the subscription agreement.

Typically minimum investment is $50K. But the minimum investment and preferred returns depend on the class that are offering for each projects.

Majority of passive investors will invest using their own name. Others will create an LLC and invest through that as well. We recommend asking your CPA for the best approach that fits your situation

The typical frequencies are quarterly. We aim to distribute the preferred returns (if applicable) on a quarterly basis and any profit above and beyond the cash flow return is distributed every 12 months. Most likely, you will receive a your quarterly distribution 30 to 45 days after the end of the period.

This answer varies on a deal-by-deal basis. However, if there is a process for pulling your money out of the deal, it will be outlined in the PPM. This process typically involves you selling your shares to another party with the written consent by Redwoods Capital.

Before investing in a deal, we will provide you with the projected timeline, which includes the hold period and the exit strategy of the project. Generally, this can be 3-5 years, and we will require you to keep your capital in the deal until there is a liquidity event.