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Investment Questions

5 questions

Tax Questions

2 questions

Angel Estate & Crowdfunding

3 questions

After I've invested

5 questions

General Questions

3 questions

Investment Questions

5 questions

What is the minimum investment amount?

The minimum investment amount varies by the project. It is ultimately up to the developer to dictate the minimum investment they accept.

How much can I invest?

There is no cap as to how much you can invest as an accredited investor. For non-accredited investors, the rules are dictated by the Code of Federal Regulations

If your annual income or net worth is less than $124,000, then you can invest $2,500, or 5% of your annual income or net worth, whichever is the greatest.

If your annual income or net worth is more than $124,000, then you can invest 10% of your annual income or net worth, but not exceeding $124,000.

Can I increase my investment after it’s finalized?

If the deal is still open, you can invest more (if you didn’t invest beyond your maximum limit).

Can I cancel my investment?

Yes, you can cancel your investment up to 48 hours before the deal closes. Remember, however, in accordance with the compensation disclosure, 1.5% of your investment is non-refundable.

How can I evaluate a real estate deal?

Evaluating real estate deals can be complex and may involve multiple factors, including the investment structure, the financial projections, the underlying property or properties, and the track record of the real estate developer. Some key factors to consider when evaluating real estate securities include:

Investment structure: Understand the investment structure and the terms of the offering, including the return on investment, the fees involved, and the investment timeline.

Financial projections: Review the financial projections for the project to determine whether they are realistic and based on sound assumptions

Property details: Consider the location and condition of the property, the tenant occupancy rates, and any other relevant factors that may affect the value of the investment.

Developer or sponsor track record: Research the track record of the real estate developer or sponsor to ensure they have a history of successful projects and sound financial management.

Due diligence: Conduct your own due diligence on the investment opportunity, including reviewing any relevant legal documents, conducting property inspections, and verifying financial information.

Tax Questions

2 questions

Do I get a K-1 at the end of the tax year?

Angel Estate requires every developer to provide a K-1 to the individual investors at the end of the tax year. However, it is ultimately the responsibility of the developer to do so.

What are the tax implications of investing in real estate securities?

The tax implications can vary depending on the investor's specific circumstances. However, in general, investors will likely be subject to taxes on any income generated from their profit-sharing payments. Additionally, if an investor sells their real estate investment for a profit, they may be subject to capital gains taxes on the difference between the sale price and the purchase price. It's important for investors to consult with a tax professional to fully understand the tax implications of their real estate investments.

Angel Estate & Crowdfunding

3 questions

Is investing in real estate securities risky?
Yes, investing in real estate securities is inherently risky and is subject to risk of loss of the entire amount invested. Thus, please make sure to do your due diligence before investing, and be familiar with our Educational Materials, Policies & Procedures, and Terms of Use.
How does crowdfunding in real estate work?

Real estate developers post investment opportunities on Angel Estate, and investors can browse through the offerings and invest in projects that match their investment goals and risk tolerance. Investors can potentially receive returns on their investment through profit sharing, property appreciation, or rental income. Generally, real estate crowdfunding may allow individual investors to participate in real estate investing with lower minimum investment requirements than traditional real estate investing.

How is crowdfunding in real estate securities regulated?

The United States' Securities and Exchange Commission (SEC) regulates real estate crowdfunding under the JOBS Act, which created several exemptions from the traditional securities registration requirements for certain crowdfunding offerings. Thus, as a crowdfunding platform, Angel Estate must comply with various rules and regulations, including registration requirements, disclosure requirements, and limitations on the amount of money that can be raised.

After I've invested

5 questions

Can I cancel my investment and receive a refund?

You are allowed to cancel your investment up to 48 hours before an offering closes, however, in accordance with the compensation disclosure, 1.5% of your investment is non-refundable. Within 48 hours of closing, or anytime thereafter, you’re not allowed to cancel your investment.

Can I sell my stake in real-estate securities?

Angel Estate does not provide a vehicle for you to sell your stake in real-estate securities. Thus, if you choose to do so, this out would be outside the Angel Estate platform.

What do I get when I invest?

Angel Estate offers only equity-based investments. Thus, when you invest in a real-estate security, you will receive shares proportionate to the amount in which you invested.

How do I get a return on my investment?

Upon the completion and sale of the real-estate project, you would share in the profits generated from the sale. Select investments may also provide periodic (e.g., monthly, or quarterly) profit distributions.

How long does it typically take to receive returns on an investment?

The length of time it takes to receive returns on a real estate crowdfunding investment can vary depending on several factors, including the investment structure, the terms of the offering, and the type of investment. In general, investing in real estate securities may have a holding period of several months to several years. Investors should review the terms of the investment carefully before investing to understand the investment timeline and any potential restrictions on when they can receive returns on their investment. It's important to keep in mind that such investments are not typically as liquid as other types of investments, and investors may need to hold their investment for the entire investment period to receive the full returns.

General Questions

3 questions

What do the terms issuer and offering mean?

The term "issuer" refers to a company or entity that is offering or issuing securities, while the term "offering" refers to the process of issuing or selling securities to investors. In the case of Angel Estate, the issuer is the real estate developer or development company, and they are offering real-estate securities.

What is an accredited investor?

An accredited investor is an individual or entity that meets certain financial criteria set by regulatory authorities, such as the Securities and Exchange Commission (SEC) in the United States and is thus considered to have the financial sophistication and ability to bear the risks associated with certain types of investments. Typically, to be qualified as an accredited investor, a net worth of at least $2m is required.

What types of documents I can use to verify my identity?

Angel Estate offers multiple methods of verifying your identity, including the use of your Drivers License, social security number, passport number, and bank statements / account information.

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