Frequently Asked Questions

Joel Douglass

Joel.Douglass@upwardInvestmentGroup.com

Michael Nemshon

Michael.Nemshon@upwardInvestmentGroup.com

Michael Nemshon

Trey.Jaynes@upwardInvestmentGroup.com

Additional Contact information may be found here

Please reach out to our Investor Relations Member 'Joel Douglass' to get set-up with our group to create a dependable passive income source.

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 must have, or 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.

No, you don’t need to be an accredited investor to register with the Spark Investor Club or to invest with us. However, certain deals will be open to accredited investors only.

To be considered as an accredited investor, you must meet one of the following two criteria:

1. Have $1 million in net worth (not counting your primary home).
2. Have either an annual income of $200,000 per year or an annual combined income of $300,000 (together with your spouse).

Additionally, you must have maintained this net worth or these annual income amounts for the past two years and intend to continue doing so over the coming year.

Also visit SEC.GOV

There are several options for types of entities/accounts you can use when investing in our funds. You can invest as an Individual, Jointly, through an LLC (Limited Liability Company), Corporation, Partnership, Retirement Plan/401K, or a Trust.

If you have an existing IRA, or a 401K from a previous employer, it is likely that you will be able to self-direct all or a portion of it into our investment vehicles. Check with your current custodian to see if they will allow you to self-direct your retirement account. If the answer is no, please contact a member of our investor relations team by email at Michael.Nemshon@UpwardInvestmentGroup.com, or text us at 1-864-276-6622, and we will introduce you to one of the custodians that we work with that will allow you to invest in alternative assets using your retirement funds.

That depends on which vehicle you decide to invest in. If you invest in our new accredited fund, you will receive a Form K-1. A Form K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Our goal is to finalize all Form K-1s annually by March 31st, however, we do rely on outside reporting and may require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns, but that is not our intention.

If you invest in our new non-accredited vehicle, you will receive a Form 1099-DIV. A Form 1099-DIV is a tax form that records income earned from entities or persons other than your employer. For our non-accredited vehicle, it will record the amount of distributions you receive and whether those distributions are income or a return of capital. We will provide you with a Form 1099-DIV by January 31st each year.

'Upward Investment Group' is working to best serve all current and potential investors. We are working on creating a fund to support investors living outside of the U.S.

The term of our vehicles are generally 10 years, but we have sole discretion to extend the life or even decrease the life after you have invested. The reason for this is we want to maximize the value of the real estate investments. We do not want to be forced to sell investments when the market is bad, nor do we want to pass up the opportunity to sell investments when the market is great. We are long-term investors and the more time we stay invested in a property, the better chance we have of capturing property appreciation from inflation and rising rents.

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.

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, we may invest in a property with the plan of not paying any near-term distributions while we undertake a capital and repositioning program.

Our fee structure is typical for private real estate managers, and we believe our fees are lower than many other managers. We currently charge a 1.5% asset management fee based on the total equity raised, a 1-5% transaction fee based on the value of properties we acquire and dispose of, and cashflow to UIG based on the distributable cash flow (this fee is a milestone fee where all cashflow promised to the investors are distributed firstly, and if the milestone is reached with this fee come into play). As our portfolio grows, we will need to add significant resources to keep pace, and we may charge property management and financing fees to help cover the costs. Essentially, our ongoing management fees along with upfront transaction fees pay the monthly bills at  Upward Investment Group, and our management promote rewards us for the performance of the investment. Keep in mind that if the property’s cash flow goes up or down, so does our management promote. This aligns our economic interests.

We do not charge miscellaneous fees, such as fees for processing and storing your investment information. We also do not ask you to pay fees or commissions to middlemen or stockbrokers to invest in our funds.

All investments involve risk and 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. 

We highly recommend that you consult with your own CPA to obtain the most accurate tax information for your unique situation.

As a real estate syndication investor, you’ll gain the tax benefits of property ownership, including accelerated depreciation and cost segregation, which can help lower the taxable passive income you receive.

Each year, you’ll receive a Schedule K-1 tax form to include with your tax filings. This form reports your income and losses for the investment.

If you happen to be a real estate professional, you may be able to apply these paper losses to your ordinary income as well. Please consult with your CPA for details related to your specific financial situation.

Yes, we believe so. People will always need places to live; therefore, the demand for housing — particularly affordable and high-quality housing — will remain high even during a downturn.

At Upward Investment Group, we invest in high-quality A and B Class apartment communities located in great neighborhoods. Investments in this asset class tend to be lower risk because the tenants are more financially secure.

This investment strategy ensures that occupancy and Net Operating Income (NOI) will remain high even during a recession, mitigating risk and protecting your investment.

Real estate syndications are group investment opportunities. As a limited partner passive investor in a real estate syndication, your money is invested alongside dozens (and sometimes hundreds) of other investors in a single commercial asset (such as an apartment building).

As a passive investor, you won’t have any other active responsibilities in the deal. Upward Investment Group, along with other general partners in the deal, will manage the asset on your behalf.