To get started, you can conveniently create an account with us on our site and the investment process is also completed online for your convenience. After signing up, you will be asked to give or confirm any required information, while also making any necessary acknowledgments electronically. If you would prefer to schedule a call beforehand, you will be asked to choose a time and date as well as to give your contact information. One of the members of our investment relations team will give you a call and answer any inquiries that you may have at that time. There are sure to be many questions to be answered along the way, but this is a good starting point.

Up until now, many of our funds have been given through the Securities Act of 1933 under Regulation D. This states that only accredited investors are able to participate. Essentially, this means that you need to have earned income that is more than $200,000 for each of the last two years or a total of $300,000 with a spouse. You must also have the reasonable expectation that you will continue to make that income during the current year.

If you don’t have that level of income, you may be able to qualify if your net worth exceeds $1 million, either with a spouse or on your own. It is important to note that your net worth can’t include the value of your primary home. These rules are set forth by the government. In the past, we have upon occasion offered funds using Regulation A, which lets investors who don’t meet these requirements to participate. These are known as non-accredited investors. In the future, we hope to do this more often.

An accredited investor includes people who:

• have earned income that is greater than $200,000 individually. It can also include those who have earned $300,000 with a spouse. This must include the last two years with the expectation that it can be earned again in the current year, OR
• have a net worth that is more than $1 million, either with a spouse or with a spousal equivalent, OR
  has good standing with a Series 82, 65 or 7 license

When testing the income, the person has to be able to meet the threshold for the two years prior to this year either with a spouse or alone. They cannot, for instance, meet one year requirements based on their own income and then base it on the shared income with a spouse for the next two years. The exception to this lies in whether the person gets married during this period. Then, they can meet the threshold through joint income for those years that they were married, as well as individual income for other years.

Furthermore, entities like partnerships, banks, corporations, trusts and non-profits can be accredited investors. Of these institutions that are considered to be accredited investors are:

• A trust with total assets that exceed $5 million that have not been formed to buy the subject securities personally, OR
• An entity that has total investments greater than $5 million that are not created specifically with buying the subject securities in mind, OR
• An entity where all of the owners of equity are accredited investors

There are many options for different types of accounts/entities that are available when using our funds. You can choose to invest jointly, as an individual, a corporation, trust, LLC, retirement plan or 401(k).

If you have an existing 401(k) or IRA from an employer, you will likely be able to self-direct some or all of it into Didenko Capital’s funds. You should talk with your current custodian to ensure it is possible for you to self-direct a retirement account. If they say no, get in touch with a member of our Investor Relations team, so we can introduce you to one of the custodians that we do business with. In this way, you can use your alternative assets to invest your retirement funds. 

You will receive a Form K-1 as a partner in an LLC that buys the properties. This is a tax form that partnerships often use to give investors detailed information about their share of the taxable income of the partnership. These partnerships are usually not subjected to any state or federal income tax and will instead hand out a Form K-1 to all of their investors as a means for them to report their share of the gains, losses, income, deductions and credits. These forms are given to the investors every year, so each investor can have Form K-1 on their tax returns.

With the GP doing so much of the work to manage and improve the property, it is reasonably expected that the GP will earn what is considered to be a disproportionate rate of return than what their contribution of equity would make it seem. A GP is just putting in 10 percent of the equity required, so it makes sense that they would benefit in this way for doing all of the work. The LP also prefers the GP stay focused on creating value, which means growing revenue, keeping costs low and so on. 

A preferred return usually called a “Pref” for shot, is a strategy used to help incentivize a GP to generate quality investments and protect capital all at once. It is sometimes known as first money out or an investment hurdle and allows limited partners to get paid first. This is a distribution from cash flow or any capital event like proceeds or a sale that has been given to a preferred investor in a project. The preferred investor is the first one to get returns up to a certain number that is usually between eight and ten percent. Once this percentage has been reached, any excess profits will then be split between the rest of the investors as was agreed upon when negotiating. 

Yes, but that is part of what makes it a rewarding endeavor. Investing through an experienced team such as Didenko Capital makes it much easier, more profitable and even safer. 

The cap rate refers to the annual net operating income, which boils down to gross trends that receive fewer expenses as well as the current market value. This cap rate is informed by factors like macro influences, types of property and micro influences. Once the net operating income and cap rate of an asset class in a specific area is known, the value of the asset can be easily estimated. 

This is a commonly used tax planning strategy that lets companies and individuals who have purchased, constructed, remodeled or expanded a property bring in more cash flow. This is done by speeding up depreciation deductions and deferring both state and federal income taxes. Once a property is bought, not only does it include the building, but it comes with all exterior and interior components as well. Usually, 20 to 40 percent of these factors go under tax categories that can be quickly written off, more so than the building itself.

A cost segregation study will pick apart the purchase price or construction cost for the property, which might otherwise depreciate over the coming decades. The main goal is to find all costs related to the property that can be depreciated over five, seven and 15 years.

This is a tax incentive that enables businesses to immediately deduct a large amount of the buying price of certain assets, like machinery, instead of writing them off during the life of the asset. This is also referred to as the additional first year depreciation deduction. Passed in 2017, the Tax Cuts and Jobs Act made big changes to the guidelines surrounding bonus depreciation. In particular, it doubled the amount of the deduction for qualified property from 50 to 100 percent. Before, it only applied to real estate that was purchased new. The rules now apply to property that has been acquired and placed after the date the law went into effect on September 27, 2017, and before January 1, 2023.