We know that savvy investors want to thoroughly understand the online investing process before jumping in with both feet or even just dipping a toe. Below are answers to frequently asked questions about real estate investing, due diligence and raising capital through Loquidity.
1) What is Loquidity?
Loquidity is an online real estate investment marketplace that brings exclusive returns to an inclusive investor base, focusing on quality investment opportunities in the Central and Midwestern U.S. The company was founded by executives within the real estate, technology and financial industries to disrupt the status quo in real estate investing by providing transparency and accessibility to what was once reserved for only a select few. Based in Grand Rapids, Michigan, Loquidity connects real estate sponsors with accredited investors who are passionate about supporting the revitalization of the Midwest.
2) What is crowdfunding? Is it safe for investors?
Crowdfunding is frequently associated with rewards and donations based types offered on sites like Kickstarter. Loquidity is an investment real estate crowdfunding platform, also known as a Regulation D crowdfunding platform. Our platform allows a group of investors (the “crowd”) to invest in a variety of prescreened equity and debt real estate assets. All of our deals undergo a rigorous underwriting process. Our focus remains on quality, not quantity, and we share as much detail about each investment as we can to our members. While there is always some risk inherent in investing in any asset class, Loquidity allows investors to create a balanced portfolio that includes real estate assets.
3) Who can invest in Loquidity’s deals?
Currently, Loquidity only accepts accredited investors, defined by the SEC as individuals whose income has exceeded $200,000 annually for the past two years ($300,000 for a married couple), or whose net worth exceeds $1 million, excluding a primary residence. Loquidity uses the 506(c) exemption under Regulation D that requires investors to verify their accreditation status. Investors are able to verify their status seamlessly through Loquidity’s website; doing so will enable them to invest in any deal on this site for up to 12 months.
4) What kind of information does Loquidity provide about each deal?
Loquidity only posts an investment opportunity online once it has undergone our due diligence process. Members can view live deals and learn more about specific investments. Every curated opportunity includes detailed information such as the estimated annual return, projected length of the investment, property and location information, risk profile and market analysis, along with a profile for all primary parties involved in the investment. Loquidity will also moderate Q&A; forums and provide regular email updates for each deal.
5) What kinds of investments does Loquidity offer? Is it a debt or an equity focused platform?
Loquidity offers debt and equity investment opportunities, with a special emphasis on investing in commercial and multifamily properties in the Midwestern U.S. Our team of real estate experts believe that investors can balance their portfolio of real estate holdings with both debt and equity assets, with each providing their own distinct advantages.
With our presence in and emphasis on growing communities within the Midwest, our deal flow is sourced by experienced real estate sponsors and property managers local to the area. Having been involved in the real estate community in the region for years, Loquidity’s founders have built a strong network within major markets including Chicago, Detroit, Grand Rapids, Cincinnati, Cleveland, Twin Cities and other cities throughout the Midwest.
6) Can I see any deals before I become a Loquidity member?
Loquidity allows sponsors to advertise their offerings, as legalized by the JOBS Act, so that anyone can view our current and past investments. However, in order to invest in Loquidity’s investment opportunities, you must register and certify your accreditation status.
7) Is there a fee to join Loquidity?
No, anyone can join Loquidity at no cost.
8) Once I join Loquidity, when can I invest in deals?
According to SEC regulations, you can invest immediately but you must verify your accreditation through our third party verification service. You also have the option of uploading documentation signed by a certified professional verifying you are an accredited investor or tax returns verifying your income.