Frequently Asked Questions
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Click one of the buttons above depending on which type of investor you are! The entire account creation and investment process is completed online. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.
An accredited investor, in the context of a natural person, includes anyone who:
- Has 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 calendar year, OR
- Has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
- Holds good standing a Series 7, 65 or 82 license
On the income test, the person must satisfy the thresholds for the prior two 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. The person may satisfy the threshold based on joint income for the years during which the person was married and based on 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 more than $5 million, not formed to specifically purchase the subject securities, and whose purchase is directed by a sophisticated person, OR
- Certain entity with total investments more than $5 million, not formed to specifically purchase the subject securities, OR
- Any entity in which all the equity owners are accredited investors.
In this context a sophisticated person means the person, 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.
For stabilized, income-producing property investments, we target low- to mid-teens equity returns on an annualized basis over the entire life of the investment. We may target equity returns that are higher or lower depending on the type of investment and amount of leverage utilized. For example, if we invest in a property that requires significant repositioning through capital and marketing investments, we may forego near-term distributions to achieve a higher gain on the sale of the property in the longer term. We target higher equity returns for these types of investments as they involve more risk.
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.
That depends on the vehicle you decide to invest in. For our accredited vehicle, we intend to pay distributions monthly but may change the frequency at our sole discretion during the term of the fund. For our non-accredited vehicle, we intend to pay distributions at least annually and our target is quarterly.
Regardless of the vehicle, the change in distribution frequency can depend on many factors such as the property’s cash flow level or needed capital expenditures. Sometimes the cash flow of the property may not support a distribution. Additionally, our funds may invest in a property with the plan of not paying any near-term distributions while we undertake a capital and repositioning program.
All investments involve risk, including those investments made in Sentinel Equity Group and Private Equity Funds. We do not guarantee that you will earn our targeted returns. There are many factors that can impact the performance of your investment, many of which are not under our control. Please keep in mind, 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 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. Additionally, we conduct 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.