Investor FAQ
Frequently Asked Questions
What is a Real Estate Syndication?
A real estate syndication is a group of investors who collectively pool their capital with the common goal of acquiring real estate.
The purchasing power of a real estate syndication will typically be greater than an individual investor. Through a real estate syndication, individual investors are provided the opportunity to participate in large-scale commercial real estate transactions that they wouldn’t otherwise have the purchasing power to transact on their own.
Who can invest with Luna Core Capital?
Any U.S. citizen (or permanent resident) currently residing in the U.S. who is over the age of 18 and an accredited investor. Certain opportunities exist for non-accredited investors who are sophisticated investors with whom we have a pre-existing relationship.
What is an accredited investor?
An accredited investor is a financial and professional criteria used by the U.S. Securities and Exchange Commission to determine who is eligible to invest in exempt offerings under federal securities laws. Individuals and entities are able to qualify as an accredited investor based on criteria including but not limited to wealth and income thresholds, professional licensing and financial sophistication. We recommend consulting your CPA or financial advisor to confirm eligibility.
What is the minimum investment amount?
Minimum investments vary by project but typically range between $50,000 and $100,000. Specific details are provided with each offering.
How do investors make money?
Returns may come from cash flow distributions, property appreciation, refinance proceeds, and profits from the sale of the asset. Each investment opportunity will have its own projected return structure.
Are investors involved in day-to-day operations?
No, investors are passive partners. Luna Core Capital manages the acquisitions, financing, development, leasing, and overall execution of the project.
What is the typical investment timeline?
Most projects are expected to have hold periods between 2 –7 years depending on the business plan and market conditions. Timelines can vary by investment strategy.
How often will investors receive updates?
Investors receive regular updates throughout the life of the project, including progress reports, financial updates, and major milestones. Transparency and communication are a priority for our team. Investors will also have access at anytime to all updates and relating documents in the investor portal.
Are returns guaranteed?
No investment returns are guaranteed. Commercial real estate investing involves risk, including market conditions, tenant performance, financing, and economic factors. However, Luna Core Capital employs risk mitigation strategies and prioritizes transparency and investor communication so investors are informed during the investment period.
Can I invest with a 401(K)?
Yes, through a self-directed IRA (SDIRA) or solo 401(k), investors can invest retirement funds in real estate syndications. This allows for tax-deferred or tax-free growth depending on the type of account utilized.