Real Impact, Real Returns

The LLC will offer Class A Units to prospective investors in accordance with a Subscription Agreement. The economics and management of the LLC will be governed by an Amended and Restated Operating Agreement, to which each investor will agree to be bound when investing in the LLC. Astride Capital acts as the managing member and owner of Class B Units in the LLC (and has all voting rights), and the investors are the members and owners of Class A Units in the LLC. As a holder of Class A Units, you have an indirect economic interest in the single real property asset held by the LLC. The number of Class A Units issued to you is based on the amount you invest and the value of the equity in the underlying property at the time of investment.

Yes. For rental properties, 100% of the property’s depreciation expense will pass through to investors based on their respective ownership percentages.

Each property is held in a stable LLC ownership structure. The limited liability company structure is designed to separate the assets and liabilities associated with the Property from the personal assets of investors.

Each investor must complete an IRS Form W-9 upon making their first investment. At the end of each applicable tax year, investors will be issued a Schedule K-1 reflecting their share of the taxable income, or loss, from each completed property. Investors will be responsible for including such income, or loss, on their tax returns.

Ordinary income / Short-term capital gains: In general, profits from the sale of a property (or Class A Units) held for less than 12 months will be taxed as short-term capital gains. Any rental income the property generates will be taxed as ordinary income. Long-term capital gains: In general, profits from the sale of a property (or Class A Units) held for more than 12 months will be taxed as long-term capital gains. NOTE: Prospective investors should consult their own tax advisors for further information about the federal, state, local foreign and other tax consequences of purchasing and holding Class A Units.

Your Schedule K-1 form can be downloaded directly from your Astride Capital account once available.

We aim to provide US taxpayers with annual K-1 statements in a timely manner prior to April 15th.

No, we structure deals to simplify tax reporting for investors. While there may be circumstances that require us to send separate K-1 statements, this is an exception to our standard process.

Yes, all investors with any activity within a given tax year will need to file Schedule K-1. However, the K-1 will not reflect the sale of the property and its profits until the sale has closed.

Yes. Tax law requires investors to file a tax return and report their state-sourced income (the income generated from economic activity, like real estate investing, in that state) to the state taxing board. For example, if you live in Texas, but invest in a Astride Capital project in North Carolina, you will need to file a North Carolina tax return showing the income reported on your North Carolina Schedule K-1 tax form.

To invest with Astride Capital, you need to be 18 or older and be verified as an accredited investor. There are five different ways to qualify as an accredited investor. If you meet any one of these five requirements, you can be verified: Individuals who have earned $200,000 or more in gross income, each year, for the past two years and expect to continue to do so. Individuals whose gross income, when combined with a spouse's income, totals $300,000 or more, each year, for the past two years and expect to continue to do so. Individuals who maintain a net worth of $1 million or more, excluding the value of his or her primary residence. An entity with at least $5 million in assets, or a business in which all equity owners are accredited investors. Individuals holding General Securities Representative (Series 7), Private Securities Offerings Representative (Series 82), or Licensed Investment Adviser Representative (Series 65) registration in good standing.

SEC regulations require that investors be accredited to invest in certain investment types, including Astride Capital’s real estate syndication investment opportunities. The SEC oversees most financial securities traded among members of the general public. This is generally a good thing because it provides a layer of protection for investors lacking experience or knowledge. But sophisticated investors want access to investment opportunities that the SEC doesn’t directly regulate. So the SEC created this accredited investor status to allow members of the general public to access innovative investment types. Being verified as an accredited investor means you’re deemed financially savvy enough to make sound decisions with your investment capital.

Astride Capital offers verification through a confidential third-party service, Verify Investor.

An accredited investor verification is valid for up to 90 days. You must make your first investment and complete the wire transfer within this time frame to avoid having to apply again. Once you have made your first investment, your verification remains valid with Astride Capital permanently.

Unfortunately not. In order to invest any amount in any Astride Capital project, you need to be verified as an accredited investor.