FREQUENTLY ASKED QUESTIONS
With introduction of crowd-funding investment model to the local marketplace, Blue Sky has developed an innovative way to give ALL private investors (small and large) access to and opportunity to invest in large real estate projects that formerly were available only to corporate and institutional investors. Investment opportunities are shared on an online platform, giving U.S. and international investors access to participate in variety of projects in different markets around the country.
The following are the rules, regulations, articles and other information on 506(c), Reg A+, and
Title III crowdfunding that govern our investment offerings:
How do I invest?
To begin, simply click the “Invest now” button located on the Current Projects page. Our representatives are available by phone with any questions you may have along the way. After reviewing documents and completing the subscription process, your proposed investment will be reviewed by one of our SEC regulated Fund Administrators. Once approved, you will have the ability to invest directly through the website.
When you decide to move forward with an investment, contributions are held with an SEC regulated fund administrator until the Sponsor has procured enough funding. Once complete, funds are released from escrow and invested into the project. All details of the projects, escrow arrangements, and various disclosures are found in the offering documents for each investment. This will let investors know how and when their capital is being deployed.
Is there a minimum investment?
Yes. Each individual project will state the minimum requirements to invest.
How is My Investment Structured?
There are two possible way your investment can be structured depending on specific offering:
Real Estate Loans (debt): Investors purchase a specific loan or loans connected to a project. The loan is secured by the property until the borrower repays the loan in full. Investors earn interest on their money, typically with a balloon payment at the end. Hold periods for the loans can be months or years, depending on the project.
Equity Investments: Investors pool funds and purchase a piece of property or properties with existing cash-flow (examples: apartment buildings, office buildings, retail shopping centers, and self-storage facilities). The investment is managed by a professional real estate investment company, also known as a “sponsor”, with a proven track record of acquiring and managing real estate. Investors can be entitled to a share of the cash-flow from rents as well as a share of the proceeds when the property is eventually sold. Hold periods can range from approximately 1-10 years, depending on the project.
Can I Invest Through an LLC, Trust or other business entity?
Yes. However, additional information and documentation is required during the on-boarding process.
How often do investors earn returns?
The frequency and duration of each return can vary. Each project will have a detailed investment summary which will map out if your return is monthly, quarterly, upon completion, etc.
Who handles my financial information?
All communication between our users and the website is encrypted and secured using HTTPS and SSL/TLS. All of our back-of-the office, escrow and financial inputs are outsourced. The escrow agent used in a particular transaction shall be disclosed in the offering documents. These escrow agents provide tools, technology and information for certain back-office functions of our website including but not limited to 15c2-4 compliant escrow, Esign Act of 2001 and SEC Rule 17a-4 compliant electronic document signing, investor and issuer background checks, and private placement disclosures to assist in disclosure compliance with the Securities Act of 1993.