All phases of an investment with RRS are handled digitally on our website and our portal. To get started, you simply sign up and become a member. Registration is free and we will ask you to provide a personal identification information, create a password, agree to terms and select your accreditation status. Once that is complete, you can browse our current offerings with much more detail. You can sign up here (link portal to “here”).

At this point you click “Invest Now” on the deal you like. The portal will automatically prompt you to supply required information and make necessary electronic acknowledgments if you haven’t done so already. After that the portal will continue to guide you to funding your investment account via ACH.

• No. A REIT has been around for much longer and act in a similar fashion as mutual funds. REITs use capital from investors to purchase income producing real estate. What makes an investment in a REIT different from real estate crowdfunding is that an investment in a REIT is an investment in the income produced from a large portfolio. A REIT investor is essentially investing in the profitability of a landlord. While investing in a portfolio does offer some risk protection versus investing in a single property, it also has some negative aspects that cannot be escaped. You can only choose the trust you invest in, not the individual real estate properties. When investing in REITs, you can be investing in high performing properties, low performing properties, in appreciating markets and in declining markets all with the same investment. A REIT investor gets less freedom to choose a property that matches their investment goals. Also, by law REITs have to pass 90% of the portfolio’s income on to shareholders. This leads to the REIT having low capital growth because the income is passed to shareholders, not reinvested, and with 90% of the income going to shareholders REITs must charge high management and transactional fees to make money.
• With real estate crowdfunding, you receive a noticeably more investment choice. The investor gets to choose the individual property or project, the location, the investment type and the investment strategy. The investor can choose a risky, higher yielding option, such as a complete renovation of a rundown building or they can invest in a safer, lower yielding property that is cash flowing already. Either way, with a direct equity investment through crowdfunding the investor gets to take advantage of tax advantages, cash flow, and appreciation in the area of their choosing with the sponsor of their choosing. As for fees, real estate crowdfunding isn’t hindered by the rule of passing 90% of there profit to their investors. That might sound negative, but it is actually very beneficial to the investor. Real estate crowdfunding sponsors can invest profits back into their property that will lead to greater returns for investors. Also, sponsors can structure return distributions in a way that benefits investors. For example, sponsors commonly use a waterfall distribution setup that is known as the promote (highlight and give a link). The promote promises investors a sponsor won’t participate in collecting any portion of the profits until investors receive a predetermined rate of return. Once that rate of return is realized the sponsor then gets to share in the profits. This supplies the sponsor with a large amount of motivation to perform while giving the investor plenty of protection.

Typically, an investment in real estate crowdfunding is considered illiquid. Most crowdfunding investments have a clearly defined holding time period. Some can be as short as a year or two, commonly seen in fix and flip options, and others can have longer hold periods like 10-12 years, which can be seen in an existing cash flowing property that shows signs of high appreciation. During the holding period it is typical that the only way the investor can get out of the investment is to find an individual that will buy your investment. Some sponsors do not assist you with this task while other sponsors will bring it to their pool of investors’ attention. Revolution Realty Shares operates as the latter. We will bring your equity sale to the attention of other passive investors in the deal. This can be done in conjunction with the investors personal efforts to sell the equity to an accredited investor. It is important to realize our efforts reduce the illiquid characteristic of the investment, but will not eliminate it. Due to this we strongly encourage investors to participate if they are comfortable and capable of holding the investment until the end of the specified holding period. We understand unexpected circumstances can arise and that is why we supply an avenue to assist investors to sell their equity.

Currently, RRS offerings are under the SEC Regulation D: Rule 506(c). Operating under this regulation allows us to publicly solicit funds, but only allows us to accept investment from accredited investors. In the future we hope to add offerings under SEC Regulation A: tier II. This regulation was brought about with the promulgation of title IV of the JOBS Act. With non-accredited investors are allowed to participate. Investment limits exist based of an individual’s annual income or net worth, but this makes investing in our offerings available to everyone.Typically, an investment in real estate crowdfunding is considered illiquid. Most crowdfunding investments have a clearly defined holding time period. Some can be as short as a year or two, commonly seen in fix and flip options, and others can have longer hold periods like 10-12 years, which can be seen in an existing cash flowing property that shows signs of high appreciation. During the holding period it is typical that the only way the investor can get out of the investment is to find an individual that will buy your investment. Some sponsors do not assist you with this task while other sponsors will bring it to their pool of investors’ attention. At Revolution Realty Shares, the investment is more liquid than our competition. Like the stock exchange, we will have a clearly defined value of the share during the hold period. It is shared on a monthly or quarterly basis depending on the deal. If the investor wants out RRS and other investors can purchase the share for that defined value. Notification of the shares for sale to other investors on the platform and all the needed paperwork will be handled by RRS. At this time the shares will only be offered to RRS members. Limitations can apply. Learn more about our secondary market here (add link).

Right now, we only accept investment from accredited investors. In addition, individuals must be over the age of 18 and a US resident. In the future we hope to have offerings available to non-accredited investors as well.

International investors can only participate through a US-based entity that they own. This US-based entity must have a US tax ID number, pay taxes in the US, and have verified accredited investor status.Right now, we only accept investment from accredited investors. In addition, individuals must be over the age of 18 and a US resident. In the future we hope to have offerings available to non-accredited investors as well.

• According to the Federal Regulations that are defined in the Securities Act, an accredited investor is:
• an individual person who has an annual income of at least $200,000, or $300,000 annually in joint income with their spouse, the last two years with reasonable expectations to earn the same or more this year. Note: additional rules apply for joint incomes.
• an individual person or jointly with a spouse is an accredited investor if they have a new worth of at least $1mm. When calculating the net worth the value of their primary residence is not taking into consideration, unless their primary residence is worth less than is owed.
• an entity, such as a bank, corporation, partnership, or charitable organization, can be considered an accredited investor. Depending on their circumstances, the entity must satisfy one or both of the following conditions:
  
  • More than $5mm in total assets, directed by a sophisticated person, and was not formed to acquire the securities offered.
  • All equity owners of an entity are accredited investors.

• Regulation D: Rule 506 (c) requires that an issuer must make reasonable efforts to verify the accredited investor status of all participants. To accomplish this requirement, the investor must supply verification of accredited investor status through the secure portal by a third party licensed professional, such as a CPA or attorney. If an investor does not have the proper verification available, it can be done through the portal. Our software offers the opportunity for an accredited investor to get verification through a partnership we have with a licensed attorney based out of California. The investor will have to supply financial information to this attorney to become a verified accredited investor through the portal.

• The SEC has set the limits on non-accredited investment in any 12-month period for a natural person as:
  
  • If either your annual income or your net worth is less than $100,000, then an investment is allowed up to the greater of either $2,000 or five percent of the lesser of your annual income or net worth.
  • If both your annual income and your net worth are equal to or more than $100,000, then an investment is allowed up to 10 percent of your annual income or net worth, whichever is less, but not to exceed $100,000.
  • It is important to fully realize the meaning of these limitations. For example, if an individual has an annual income of $185,000 and their net worth is only $90,000, then they are allowed to invest 5 percent of $90,000 over a 12 month period, which is $4,500. This is because the net worth is below $100,000, the rules stipulate that is the critical value for the limitation calculation despite the higher annual income, and the $4,500 is greater than $2,000.
• You can calculate your net worth using FINRA.
• Revolution Realty Shares is not accepting investment from non-accredited investors at this time.

• Privacy of all investor information is of the utmost importance at Revolution Realty Shares. The portal software is licensed through CrowdStreet, Inc. CrowdStreet hosts its data on AWS’ Cloud, which is the cloud service offered by Amazon.com Inc. All architectural and security protocols utilized from AWS Cloud and CrowdStreet ensure our investors privacy is safe and secure. For our own general practices, RRS has all employees sign confidential, non-competition, and non-solicitation agreements to ensure they do not use the investors information in any way besides for the purposes they were obtained from the investors. All employees have thorough background checks at the beginning of their employment and only authorized relevant employees are given access to the sponsor’s portal.

• Self-directed retirement accounts can be used to invest. Typically, three requirements must be met:
  
  • The process is straightforward but requires more time than investing through other avenues. The IRA investment cannot typically be accomplished within 10 days of offering closing.
  • The custodian must be able to process through electronic signatures.
  • The custodian must be able to process contributions and distributions through ACH transfer payments.

• The promote, which is sometimes referred to as the waterfall distribution, is a return distribution structure that gives the sponsor of the real estate offering incentive to perform by giving them potential to earn a disproportionate portion of the profits. This distribution structure is set up in a way that ensures the investors get a fair and substantial portion of the profits, while also supplying the sponsor incentive to perform their responsibilities to a high level. Promote structures are always predetermined and clearly stated in all offers. A wide variety of promote structures exist between platforms, sponsors, and even offerings from the same sponsor. Structure of the promote usually depends on the risk involved and the amount of work the sponsor is going to have to perform to ensure success. To see examples and to get a more thorough explanation of how sponsor promote structures benefit investors check out “______________.” (link to article – coming soon).

• In real estate crowdfunding, a preferred return is when all distributions are allocated to one member of a real estate owning entity until they reach a predetermined rate of return. Once that rate of return (the preferred return) is achieved the other members are entitled to distributions. For Revolution Realty Shares, the preferred return is the rate of return investors receive before the sponsors promote takes place. The preferred return ensures the investors receives a healthy return before the sponsor can compensate their work through the promote.

• All distributions will be distributed through ACH transfer up until $100,000. If the amount of money exceeds $100,000 the funds will be distributed through wire transfer. The timing of distributions can vary between deals and will always be predetermined. For the most part distributions will happen on a quarterly basis versus a monthly, semi-annual, or annual basis.

• Revolution Realty Shares has several competitive advantages over its competition, and they are:
  
  • Invest with a partner. Revolution Realty Shares is a sponsor-direct platform. That means we never operate as a third-party platform and instead only offer investment opportunities that we source, develop, invest in, and manage ourselves. By doing this we eliminate the need to charge investors unnecessary fees and we eliminate the need of maintaining a high quantity of deals keeping the fees coming in, which can lower the deal quality. At our core we are not a brokerage business, we are a real estate development business. We are highly focused on quality because we profit from our properties’ tenants and buyers. Never through fees.
  • Partner with Proven Professionals. The real estate professionals at RRS have been enthusiastically investing and developing real estate for decades. Our experience has spanned residential development and all major types of commercial development. We have even grown to specialize in adaptive re-use, urban infill, and historic renovation. These specializations have allowed us to successful transform the trickiest of development projects and has allowed us to find huge value where others missed it. Look over our past projects (highlight with link) and see for yourself
  • The Right Investment for Every Strategy. Our diverse real estate development background allows us to find value in many different types of projects. This gives investors the chance to accurately match their investment goals with the right investment opportunity. Some investments will be higher risk/higher return opportunities like an adaptive re-use renovation of a historic mill, others will be lower risk/moderate return (moderate when compared to higher risk opportunities) opportunities like an existing apartment complex in an emerging market that only needs cosmetic updating. Even beyond risk/return choice investors with RRS can match their investment strategy based on hold period. Some deals will have a short holding period, such as a fix and flip of a deteriorated single family house in a high demand market, some will have a long holding period such as an existing apartment complex in a growing market. Real estate crowdfunding gives the investor choice, why not utilize this power of choice with a platform that will give you a variety of quality opportunities choose from?
  • Align Your Interests and Investments with a Motivated Sponsor. As previously mentioned, Revolution Realty Shares is not a third-party platform profiting by fees. Instead we are a sponsor direct platform that only makes profit from finding, developing, and managing profitable real estate. With profit only coming from real estate success (and therefore investor success) and with substantial co-investment, RRS is extremely motivated to perform every step of the way. Is a company that survives by charging you fees as motivated as RRS during due diligence? Is a sponsor on a third-party platform as motivated as a sponsor who spent the time and capital creating a real estate crowdfunding entity? Is that sponsor as motivated to perform for investors knowing it will negatively affect a different company (the third-party platform) and not his own crowdfunding platform? In our opinion the answer is no for all of those questions. Invest with a motivated real estate developer who only succeeds if you do.

• Revolution Realty Shares will have a unique variety of real estate investment opportunities. The large majority of offerings will be commercial real estate, but will vary between multifamily, retail, office, hospitality, and mixed-use commercial real estate. Beyond commercial offerings, RRS will offer residential opportunities and they can vary between speculation home construction (both singular spec homes and larger developments), single family fix and flips, and condominium conversion/construction that are then sold. We will have a wide variety of offerings because we have successfully navigated all these forms of development and investment before starting this real estate crowdfunding platform. Take a look at some of the past projects we have completed (link).Revolution Realty Shares has several competitive advantages over its competition, and they are:
  • Invest with a partner. Revolution Realty Shares is a sponsor-direct platform. That means we never operate as a third-party platform and instead only offer investment opportunities that we source, develop, invest in, and manage ourselves. By doing this we eliminate the need to charge investors unnecessary fees and we eliminate the need of maintaining a high quantity of deals keeping the fees coming in, which can lower the deal quality. At our core we are not a brokerage business, we are a real estate development business. We are highly focused on quality because we profit from our properties’ tenants and buyers. Never through fees.
  • Partner with Proven Professionals. The real estate professionals at RRS have been enthusiastically investing and developing real estate for decades. Our experience has spanned residential development and all major types of commercial development. We have even grown to specialize in adaptive re-use, urban infill, and historic renovation. These specializations have allowed us to successful transform the trickiest of development projects and has allowed us to find huge value where others missed it. Look over our past projects (highlight with link) and see for yourself
  • The Right Investment for Every Strategy. Our diverse real estate development background allows us to find value in many different types of projects. This gives investors the chance to accurately match their investment goals with the right investment opportunity. Some investments will be higher risk/higher return opportunities like an adaptive re-use renovation of a historic mill, others will be lower risk/moderate return (moderate when compared to higher risk opportunities) opportunities like an existing apartment complex in an emerging market that only needs cosmetic updating. Even beyond risk/return choice investors with RRS can match their investment strategy based on hold period. Some deals will have a short holding period, such as a fix and flip of a deteriorated single family house in a high demand market, some will have a long holding period such as an existing apartment complex in a growing market. Real estate crowdfunding gives the investor choice, why not utilize this power of choice with a platform that will give you a variety of quality opportunities choose from?
  • Align Your Interests and Investments with a Motivated Sponsor. As previously mentioned, Revolution Realty Shares is not a third-party platform profiting by fees. Instead we are a sponsor direct platform that only makes profit from finding, developing, and managing profitable real estate. With profit only coming from real estate success (and therefore investor success) and with substantial co-investment, RRS is extremely motivated to perform every step of the way. Is a company that survives by charging you fees as motivated as RRS during due diligence? Is a sponsor on a third-party platform as motivated as a sponsor who spent the time and capital creating a real estate crowdfunding entity? Is that sponsor as motivated to perform for investors knowing it will negatively affect a different company (the third-party platform) and not his own crowdfunding platform? In our opinion the answer is no for all of those questions. Invest with a motivated real estate developer who only succeeds if you do.