We operate a very transparent investment fund for our partners. Please see below some of the questions we often hear from our investors.
What is the objective of the residual ventures funds?
We are looking for passive income by investing into commercial real estate projects such as branded hotels, apartment complexes and student housing projects primarily in the Mountain West region. We want to invest with other honest and transparent business executives. If you are like us, we want to build stable passive income with high appreciation of the underlying assets.
What is the investment horizon for the fund?
We make investments for the long-term with hopes for regular passive income. Each investment has a typical time horizon of between 10-20 years and hopefully more. Depending upon market conditions and overall opportunity costs to investors properties will sometime sell because the offer is too good to turn down or the managers feel that the money can be deployed into a better peforming asset.
Do the manager invest their own money and how are they compensated?
Yes! The managers of both Residual Ventures and PEG Development believe in these projects and thus we will typically own anywhere from 10% - 25% of the capital units. The RV managers receive a 15% profits share of the fund. There is no management fee as we only share in the upside or profits earned on the invested capital.
What is the minimum investment amount and do I need to be an accredited investor?
We have a minimum investment threshold of $100,000. We are permitted by law to have up to 35 non-accredited investors but that includes looking through our investors investment entities so if you have 36 kids as beneficiaries of your family trust you are out of luck.
Will I receive regular updates on the projects?
One of the reasons why we like to invest with PEG Development is their attention to detail and the fact that we get regular monthly reports on each project (which are all passed through to you). We also have a very close relationship with the CEO and executives of PEG (going back to when Jerry and Cameron first learned to ride a tractor or milk a cow - all of which in Idaho they can do before they can talk).
How can I sell my investment if things change later on for me?
Investing into a private fund like this isn't the same as investing into a public REIT for example. There is no immediate liquidity. However, we have seen in the past where an investor wanted liquidity and one or more the other investors stepped up to purchase those units (remember there is generally asset appreciation over time and that net asset value is not reflected on a stock ticker somewhere).