Frequently Asked Questions

Q. How secure is my investment?

A. While no investment is totally guaranteed, we feel that quality tenants in well located real estate represents a safer investment than many alternatives found in the marketplace today.

 

Q. What exactly do I own?

A. The units offered in this investment are not the same as mutual fund units.  You actually hold title to the property proportional to the investment made.

 

Q. Who arranges the mortgage financing for the project?

A. SAM arranges the first mortgage on the project.  We are currently obtaining mortgage rates of between 4% and 5% with a 5 to 10 year term.

 

Q. How liquid is the investment, when can I cash in my units?

A. The best approach to real estate investment usually includes a longer term investment horizon. Investors are required to hold the units for a minimum of 5 years before redemption.  Having said that, we feel that the cash distributions and long term capital appreciation will be incentive to hold on to the investment for the long term.

 

Q. Will I have to worry about day to day management?

A. Sovereign Asset Management will manage all aspects of the property including leasing, property management, maintenance, tenant liaison, accounting, and monthly distributions.

 

Q. When will distributions begin and how often will I receive them?

A. Distributions will begin once all tenants are paying rent.  This generally occurs approximately 6 months after the building is complete and the tenants have occupied their space.  Distributions will continue on a quarterly basis.