FAQ’s

Scale My Portfolio helps connect investors with exclusive pre-vetted investment opportunities in Commercial real estate. Scale My Portfolio works hard to identify the best investment opportunities for its investors. These investments are completely passive in nature for investors and they provide superior returns compared to other asset classes.

There are several benefits such as the investment is completely passive – no need to deal with tenants, toilets and trash; You have an opportunity in invest in other high growth geographies; Your personal credit is not tied up; You get to leverage economies of scale as well the experience of seasoned operators. In-depth investor benefits are outlined here.

In most cases, only accredited investors can invest in these opportunities (however, there are opportunities where we may allow non-accredited investors). An accredited investor is anyone who:

• earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) 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 or spousal equivalent (excluding the value of the person’s primary residence), OR
• holds in good standing a Series 7, 65 or 82 license.

A real estate syndication is a partnership between several investors. A group of passive investors (Limited Partners or LPs) pool together funds to acquire a large property led by a small group of active investors (General Partners or GPs).  The General Partners, also known as the sponsors or syndicators, have the experience and skills necessary to procure, manage and optimize the property. You can think of a syndication as a ride on a ship. The LPs are the passengers who have paid to get from one place to another without responsibility for maneuvering the ship. The GPs are the captains responsible for making sure that you arrive safely to your destination.

This is a legitimate concern to be wary of fraud in the investment world. Here are some key signs of security and legitimacy: You are purchasing interest in a legal entity that is incorporated with the sole purpose of owning the real estate. You will be a direct owner of the asset alongside the other limited partners and the general partners.

The offering is structured following strict guidelines established by the U. S. Securities and Exchange Commission (SEC), the branch of government created with the specific focus of protecting investor interests in private and public investment offerings. The primary sponsors do go through background checks by a SEC lawyer. The legal entity is established in the state where the property is being acquired (verifiable through the State Business Registration site). In addition, when a property is acquired, you can verify the transaction on the local county real estate records website.

Also, you are investing in a tangible asset that you can visit anytime. Just like we do at Scale My Portfolio when vetting our syndication partners, we encourage our investors to run independent background checks on us as well as on our Syndication Partner for that specific deal. 

Scale My Portfolio reviews each investment opportunity thoroughly before bringing it to our investors and then reviews the monthly financials once the investment has been made.

Once you join our Investor Club, you will be notified of future investment opportunities and the next steps associated with moving forward with the investment. Once you’ve done your due diligence, you may go ahead and express your interest in participating in that particular investment opportunity.

The investment time frame for each investment is different. They tend to be medium to long term investments. Typically most syndicators prepare investors for a 5 to 10 year hold time so that the group is not forced to divest under unfavorable economic conditions. However, the actual average hold time for most of the opportunities we’ve been involved in has been 3-4 years.

Minimum investments can vary from opportunity to opportunity. The typical minimum investment amount for most opportunities is usually $50k, however it can be upto $100k for some large opportunities.

You can use the following funding sources:

• Cash or Cash equivalents (stocks, mutual funds, CDs, bonds, Crypto)
• 401k from a previous employer or IRA account → these funds can be rolled over into a self-directed IRA account without tax implications
• 1031 exchange funds (must be a sizable amount for the additional legal costs to make sense)

Yes, the syndicator creates a new LLC for each investment and each investor is a limited partner in the LLC proportional to their investment amount.

Yes, we absolutely invest in these opportunities as best possible based on our liquidity at the time. We started investing in these opportunities in 2011 and this is how we have been Scaling our Portfolios. So, we definitely have skin in the game on most opportunities and our families’ financial interests are in sync with yours.

Typically investors need to sign the following documents for each investment:

• Private Placement Memorandum 
• Operating Agreement 
• Subscription agreement

Depending on the investment opportunity, preferred returns are distributed on a monthly or quarterly basis as defined in the legal documents of the opportunity. A final distribution will be made upon disposition of the property.

The syndicator will send detailed monthly reports on the performance of the property. You receive an annual K-1 form for each investment. Please consult your own CPA when making a decision about an investment.

Depreciation is one of the most important tax benefits in real estate investing. When you invest alongside Scale My Portfolio, you invest in an LLC that owns the property. The benefits of the property, including depreciation, are passed through the LLC to each investor. You can take advantage of these tax benefits every year during the hold period or all together at the end when the asset is disposed of depending on your tax situation and depending on how the investment is structured.

You receive an annual K-1 form for each investment. Please consult your own CPA when making a decision about an investment.

A Real Estate Syndication is a private offering where investors acquire interest in an entity that’s created with the sole purpose of owning a specific asset. When you invest in a real estate syndication you become a direct owner of the real estate and gain access to all the benefits of direct ownership, like depreciation and other tax benefits.

A REIT is an entity created to hold interest in and operate a large portfolio of properties, typically of the same asset class. When you own shares in a REIT you are not a direct owner of the real estate, and therefore you do not receive the benefits associated with direct ownership.

All properties carry property insurance as well as business interruption for loss of income insurance as needed.