Frequently Asked Questions-
What types of accounts can I invest through? Common investment accounts include individual and joint accounts, tenancy-in-common arrangements, and entity accounts such as trusts, LLCs, limited partnerships, C corporations, and S corporations. Investors can also use retirement accounts, including IRAs and 401(k)s (see more details below).
Can I invest through my IRA? Yes, you can invest through your IRA. If you already have a self-directed IRA, confirm with your custodian that they allow investments with Velocity Investment Partners. If you haven’t yet converted a traditional IRA to a self-directed IRA, you’ll need to work with a custodian to set that up. If you’d like, we can provide a referral to the custodian we personally use.
What is a K-1? As a partner in the LLC that acquires the properties, you will receive a K-1 form. A K-1 is a tax document used by partnerships to report each investor’s share of the partnership’s taxable income. Partnerships themselves typically do not pay federal or state income taxes; instead, they provide K-1s so investors can report their portion of income, gains, losses, deductions, and credits on their personal tax returns. K-1s are issued annually to ensure each investor can accurately include these amounts on their taxes.
How to request an amended K1 from last year? To request an amended K1 from last year, please email our Investor Relations team at: sutton@investvelocitypartners.com
Am I an accredited investor? An accredited investor, when referring to an individual, includes anyone who: earned income exceeding $200,000 in each of the past two years (or $300,000 jointly with a spouse) and reasonably expects the same income in the current year, or has a net worth over $1 million, individually or jointly with a spouse, excluding the value of their primary residence.
Certain entities can also qualify as accredited investors, including banks, partnerships, corporations, nonprofits, and trusts. Depending on the situation, the following may apply: Any trust with assets exceeding $5 million, not established solely to purchase the specific securities, and whose investment decisions are made by a sophisticated person, or any entity in which all equity owners meet the accredited investor criteria.
In this context, a “sophisticated person” is someone who has, or is reasonably believed by the offering company or private fund to have, sufficient knowledge and experience in financial and business matters to assess the merits and risks of the proposed investment.