Frequently Asked Questions

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A list of common questions and answers to help with any problem you may be having. If your question is not here, feel free to call or email us your question and we will get back to you as soon as possible with an answer.

SMARTCAP, Inc. manages private equity commercial real estate funds and syndications. By investing with SMARTCAP, Inc. investors can own a share of a professional managed, diversified income producing commercial real estate portfolio.

SMARTCAP invests in cash flowing value add commercial real estate properties. Investors are entitled to a share of the cash-flow from rents as well as a share of the proceeds when the property is eventually sold. The average hold for an investment is 3-7 years. These investments are sometimes called syndications because the real estate company is syndicating some of the investment from other investors. Through strategic acquisitions of value add commercial properties, SMARTCAP offers a diversified portfolio of high-performing quality value add Properties.

When investing in a REIT, investors have little information regarding actual properties the REIT owns and certainly can't physically go and touch their investment. With The SMARTCAP Group, investors can invest in individual properties giving added transparency and control over investment selection.

In addition, REITs are such large entities that they can rarely participate in many of the smaller investments and typically don't have the bandwidth to invest in value add opportunities. The SMARTCAP GROUP is nimble enough to capture the smaller value add retail shopping centers.

SMARTCAP makes it easy for accredited investors to invest in real estate. We provide access to commercial real estate opportunities that were historically limited to only the very wealthy and those willing to participate in the day-to-day management of properties. We spend countless hours finding quality real estate investments so you don't have to. We allow investors to participate in the benefits of commercial real estate investment with smaller investments. Instead of purchasing a multi million-dollar building on your own, you can invest in a portfolio of multi-million dollar buildings in a syndication. And we make the process transparent and painless allowing you to screen investments online and have access to all your investments and documents in one place.

We target returns of 12-15% IRR over the lifetime of the investment through the return of current cash flow and capital appreciation captured on sale or refinance of properties. We invest in value add retail shopping center properties that are improved through lease-up, purchased below replacement cost and have current cash flow.

SMARTCAP, Inc. minimizes risk through location diversification, strategic purchases of assets below replacement value, maintaining low debt / equity ratios and high operating buffers. For every ten buildings we review only one meets our criteria for a strong investment

When you invest with The SMARTCAP Group, you purchase shares of a LLC as a limited member. That LLC owns a specific investment property like a retail shopping center. An LLC gives you liability protection, shielding your personal assets from the investment.

The SMARTCAP Group acts as the managing member of the investment property LLC. The limited member investor of an LLC has no day-to-day management responsibilities. Decisions in an LLC are governed by a document called an Operating Agreement. While every operating agreement is slightly different, they usually include a manager (who may also be a member) and limited members. The manager typically makes all of the day-to-day decisions and the limited members act as passive investors on the transaction. The manager can determine how much cash to distribute to the limited members versus how much to hold in reserve and assess possible sales for the property.

The SMARTCAP Group manages private investments of physical properties around the United States. The investments are not traded on public stock exchanges and cannot be easily sold or traded. Different properties have different expected hold periods. A hold period is the anticipated time investors will be involved with the investment until it is re-sold or the loan is paid off, and range from less than 6 months to greater than 5 years. It is important to read the investor documents for a deeper understanding of the hold period for each investment. As an investor, you will receive a return on your investment when the company distributes money. Money is typically distributed on two occasions: 1) investors receive their share of the profits. 2) the property is sold or refinanced.

Although no investment is guaranteed, one benefit of investing in commercial real estate is that you are investing in physical assets around the United States. Your investment is in an actual property as opposed to a stock or bond or other non-physical asset.

Yes. Similar to investing in the stock market, there is no guarantee when you are investing in real estate. The real estate market has economic cycles and it is difficult to know how and when the economy will change.

The SMARTCAP Group will ensure timely updates to all investors through email at least quarterly. In addition, investors can access information and documents about their property investments right here at the www.smartcapgroup.com website. Finally, you will receive tax documents every year that you have a distribution from an investment.

The SMARTCAP Group always manages with an operating buffer for the property. As such our investments typically don't have a capital call. A capital call is where the investor is required to commit more money to the property beyond their initial investment. Rather than requiring additional investments from existing investors it is possible that investors will be diluted if more money needs to be raised.

While we cannot provide legal or tax advice and recommend you speak with your own accountant or attorney, one of the benefits of investing in real estate equity through Limited Liability Companies (LLCs) is that they can be taxed as partnerships and it allows for the entity to be pass through. For example, profits, losses and depreciation can be passed through to the investors, as applicable on equity investments.

The Securities and Exchange Commission (SEC) has provided for certain exemptions in the sale and registration of securities if they are only offered and sold to accredited investors. Accredited investors have to meet minimum income and/or net worth thresholds and are thought to be sophisticated enough to make informed decisions on the merits of any particular investment opportunity. By offering our investments only to accredited investors, we ensure regulatory compliance.

Investment minimums will typically be $50,000, however we reserves the right to alter this on a per project basis. There will be no maximum investment amount, but we reserve the right to limit the investment to amounts reasonable to invest efficiently.

Currently we meet with each and every potential investor before approving them to invest on our platform. If you would like more information please email us at info@thesmartcapgroup.com.

Yes. We go to great lengths to ensure the security and privacy of all of our investors and our data and use SSL. SSL (Secure Sockets Layer) is the standard security technology for establishing an encrypted link between a web server and a browser.