HOW IT WORKS
For non-accredited investors, this is a solicitation of an indication of interest. No solicitation or acceptance of money or other consideration, nor of any commitment, binding or otherwise, from any person is permitted until qualification of the offering statement.
HOW DO I GET STARTED AS AN INVESTOR WITH CARDONE CAPITAL?
You can get started as an investor with Cardone Capital here: https://invest.cardonecapital.com/accounts/register
The entire account creation and investment process is completed online via the Cardone Capital website. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.
WHAT TYPE OF ACCOUNTS CAN I INVEST THROUGH?
We currently support personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations). For more information on IRA accounts, see below.
CAN I INVEST THROUGH MY IRA?
Yes, you can invest through your IRA. If you currently have a self-directed IRA, please check with your current custodian to ensure that they will allow you to place your investment with Cardone Capital.
WHAT IS A K-1?
As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
WHEN WILL THE K-1 BE AVAILABLE TO INVESTORS?
Our goal is to finalize all K-1s 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.
AM I AN ACCREDITED INVESTOR?
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.
DO I HAVE TO BE AN ACCREDITED INVESTOR TO INVEST?
No. We currently have investment opportunities that are open to accredited and non-accredited investors. Please register at https://invest.cardonecapital.com/accounts/register/ to view our current offerings.
WHO CAN INVEST?
Any accredited investor over the age of 18.
CAN INTERNATIONAL INVESTORS INVEST?
Yes. We recommend that you consult your accountant or financial advisor to get information on the tax implications of investing in the US.
WHAT IS THE MINIMUM INVESTMENT?
The minimum investment is $100,000.
HOW DO I FUND MY INVESTMENT?
You can fund your investment by wiring the funds or by check. Please address the check to Cardone Equity Fund IV and mail it to:
Cardone Capital, LLC
18909 NE 29th Avenue
Aventura, FL 33180
WHAT TYPE OF ACCOUNTS CAN I INVEST THROUGH?
We currently support personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations).
HOW OFTEN SHOULD DISTRIBUTIONS BE EXPECTED?
An investor can expect to receive monthly distributions. CEF IV will also distributes capital to investors at the end of the year depending on the performance of the properties and when properties are sold or refinanced.
HOW WILL I BE UPDATED ON THE PROGRESS OF MY INVESTMENT?
Investors can access updated account information 24/7 by logging into our investor portal. They’ll also receive quarterly asset management updates via the portal on each property, investor distribution and contribution information, and your annual Form K-1 tax form.
WILL I BE ASKED TO VERIFY MY STATUS AS AN ACCREDITED INVESTOR?
Yes. A letter from a CPA or attorney, confirming that you are accredited, is required. You will have the option of obtaining the letter during the investment process in the portal, which utilizes verifyinvestor.com, at no extra cost to our investors.
WILL THERE BE ANY ADDITIONAL CAPITAL CONTRIBUTIONS?
The Manager may find it necessary to call an additional capital contribution for up to 10% of your initial capital contribution.
AM I ABLE TO CASH OUT MY INVESTMENT AT ANY TIME?
No. By their nature, real estate investments are illiquid and have a longer-term time horizon then liquid stocks or bonds.