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Frequently Asked Questions
We have answered a few frequently asked questions to get you started
If you have any questions, please email us at hello@pistisinvest.com or call/text us at [ (312) 344-3160 ]
Please send us an email with your name, contact details, note whether you are an accredited investor or not, including your investment experience, and someone from the team will follow up with you.
Please see the U.S Securities and Exchange Commission’s definition of an accredited investor here.
If you have an existing IRA, or a 401K from a previous employer, it is likely that you will be able to self-direct all or a portion of it into our investment vehicles. Check with your current custodian to see if they will allow you to self-direct your retirement account. If the answer is yes, please contact US by email at hello@pistisinvest.com or call/text us [ ], and we can make introductions to a handful of custodians that will allow you to invest in alternative assets using your retirement funds.
That depends on which vehicle you decide to invest in. If you invest in our new accredited fund, you will receive a Form K-1. A Form K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Our goal is to finalize all Form K-1s annually by March 31st, however, we do rely on outside reporting and may require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns, but that is not our intention.
If you invest in our new non-accredited vehicle, you will receive a Form 1099-DIV. A Form 1099-DIV is a tax form that records income earned from entities or persons other than your employer. For our non-accredited vehicle, it will record the amount of distributions you receive and whether those distributions are income or a return of capital. We will provide you with a Form 1099-DIV by January 31st each year.
You can invest in our accredited fund if you live in another country. Depending on how you structure your investment, different documents may be required. For our non-accredited vehicle, only U.S. Persons can invest, meaning a U.S. citizen or resident, U.S. partnership, corporation or entity, or U.S. estate or trust.
The term of our vehicles vary, ranging from five to 10 years, but we have sole discretion to extend the life or even decrease the life after you have invested. Rigorous academic studies that are based on a long history of analyzing direct investments in real estate suggest that the optimal hold period required to maximize returns is approximately seven years. Our goal is to maximize the value of the real estate investments. Consequently, we do not want to be forced to sell investments when the market is bad, nor do we want to pass up the opportunity to sell investments when the market is great. Real estate investing requires a long-term approach and the more time we stay invested in a property, the better chance we have of capturing property appreciation from inflation and rising rents.
We strive to align the interest of our investors with our by putting money in each vehicle alongside our investors. Our goal is to identify, structure, execute, and make available investment opportunities for persons seeking exposure to real estate. The decision on our investment is made on a case-by-case basis and driven by many factors such as lender requirements and the speed needed to close property investments. We evaluate each property as if all the capital to be invested is ours and structure the deal in a manner that prioritizes the relationship we have with our investors.
We target mid-teens equity returns on an annualized basis over the entire life of the investment. However, note that returns vary depending on market factors, tactical execution of the contemplated business strategy and leverage. We strive to target returns that are in-line with the market for direct investing in real estate, depending on the strategy, while focused on achieving a premium return based on our unique insight and ability to effectively execute.
Our targeted returns are just that, targets. Investment involves risk and our actual returns may be higher or lower and may include a partial or total loss of your investment.
Distributions vary based on the investment. We intend to pay distributions monthly but may change the frequency at our sole discretion during the term of the investment. The change in distribution frequency can depend on many factors such as the property’s cash flow level or needed capital expenditures. When executing on opportunistic or value-add investment strategies, the cash flow of the property may not support a distribution while we undertake a capital and repositioning program to create long-term value for our investors.
Fees vary depending on the deal type and market conditions. But for example, a middle-of-the-road investment would have a 1% asset management fee based on the total equity raised, a 1.5% transaction fee based on the value of properties we acquire and dispose of, and a profit split after required annualized return on investment multiple thresholds for investors have been reached. Note that the fees support the administrative and overhead cost of running our company and the profit sharing incentivizes us to hit the return targets presented to you when you invested. We strive to align our incentives in a manner that ensures we hit your return goals.
We do not charge miscellaneous fees, such as fees for processing and storing your investment information. We also do not ask you to pay fees or commissions to middlemen or stockbrokers to invest in our funds.
All investments involve risk, including those investments made alongside Pistis. For avoidance of doubt, investing involves risk and may result in partial or total loss of your investment. Prospective investors should carefully consider investment objectives, risks, charges, and expenses, and should consult with a tax or legal adviser before making any investment decision. We do not guarantee that you will earn our targeted returns because of factors that can impact the performance of your investment, many of which are not under our control.
That said, we do believe that investing in private real estate poses less risk than many other types of investments. Private real estate has historically been less volatile than the stock market, and properties generally appreciate over time as inflation tends to push rents up. Pistis conducts extensive research and due diligence on every property investment and have a high degree of conviction that our risk is balanced with our targeted returns.
Our balanced approach to identifying and executing on opportunities, as well as commitment to our investors keeps us focused. We can humbly say that we have never lost investor money investing in real estate.