Help & FAQs - Simple House Capital

Who can invest with Simple House Capital?

As a Registered Investment Advisor (RIA), all investors are required to be Qualified Clients in order to invest with Simple House Capital. Under SEC regulations, to be considered a “qualified client,” a natural person or company must:

Have a net worth (together, in the case of a client who is a natural person, with assets held jointly with a spouse) of more than $2.2 million (excluding the value of such natural person’s primary residence and indebtedness secured by such residence) immediately prior to entering into the contract;
Have at least $1.1 million of assets under management with the adviser immediately after entering into the investment advisory contract with the adviser;
Be a “qualified purchaser” as defined in Section 2(a)(51)(A) of the Investment Company Act of 1940; or
Be a “knowledgeable employee” of the adviser.

Can I invest with Simple House Capital through an LLC, Trust, 401k, or self-directed IRA?

Yes, you can invest as an individual, jointly with your spouse or other related person, through several different types of retirement accounts, or through an LLC, Corporation, Trust, and many other types of entities.

Can international investors invest with Simple House Capital?

Yes, international investors can invest through our U.S. vehicle if they have a U.S. investment entity in place or through our Cayman domiciled, offshore vehicle in which they are not exposed to U.S. taxes and are not required to complete U.S. tax filings.

What is the minimum investment level?

The minimum investment level is $100,000 for our Funds. Simple House Capital works with several types of investors including High Net Worth Individuals, Family Offices, Wealth Managers, and Institutions. As such, investment amounts can range anywhere from $100,000 to $50,000,000.

What steps are involved in the subscription process for Simple House Capital investments?

There are three main components to the subscription process:

1) Qualified Client Accreditation Verification
2) AML Documentation
3) Online Subscription Forms via DocuSign.

Investors are invited to proceed with funding after these components are complete. Our team walks investors through each step of this process and are available via phone, email or zoom to answer any questions and provide support.

Can I add to my initial investment later?

Yes, you can increase your commitment to the Fund at any time during the fundraising period. Simple House Capital’s fundraising periods typically last between 6 to 8 months.

What do I own when I invest in a Simple House Capital Real Estate Fund?

Investors will own interests in the Fund (as Limited Partners), which in turn will invest in underlying real estate assets (typically through additional vehicles). An investor’s indirect ownership in an underlying asset will therefore reflect the asset’s equity value to the Fund multiplied by the investor’s ownership interest in the Fund. For example, if the Fund has $500M of commitments, an investor’s $500,000 commitment would imply a 0.10% stake in the Fund (and further subdivided by asset).

What kinds of financial reports are sent to investors and at what frequency?

Simple House Capital provides Quarterly Reports to investors which include market overviews (economic, industry and geographic), investment update summaries, Fair Market Values and financial reports at both the investment and property level. We also provide Fund audits on an annual basis as well as annual K-1 forms for U.S. investors. These reports are in addition to the quarterly Simple House Capital Report and articles that are produced by our team to share industry and market insights.

Have you ever had to call additional capital due to negative performance in the past?

No, Simple House Capital has not called for additional capital due to negative performance in the past.

Does Simple House Capital accept 1031 exchanges?

The commercial real estate opportunities available at Simple House Capital are not meant to be used in 1031 exchange transactions.

Are there any tax benefits to note?

U.S. investors, due to their passive role in the Fund, benefit from pass through depreciation generated by the underlying properties. This typically results in a taxable loss for at least 3 years of the investment. This taxable loss is not related to the actual cash distributions that investors receive. The loss appears on investors’ K-1 forms and can be used to defer tax payments for this investment or others in their portfolio. Investors should always consult with their own tax advisors and accountants.

Can a Limited Partner sell their shares if they would like to exit early?

If a Limited Partner would like to sell their shares for liquidity (or any other purpose), they may, beginning one year after their initial contribution, request the General Partner to implement a procedure to allow for this exit on a discounted basis. All exits need to be requested, approved and coordinated by the General Partner.

Download Our Credibility Packet

Fill the form to download