Question 1

How can I invest?

Accepted Answer

Please leave your contact information in our chatbox. Our investment team will contact you to discuss investment opportunities and answer any questions.

Question 2

Where are you located?

Accepted Answer

Our headquarters is located in Forest Lake, Minnesota. Our portfolio spans across multiple states.

Question 3

Why do I have to be an accredited investor?

Accepted Answer

The SEC (Securities Exchange Commission) has ruled that companies can accept any accredited investor,  as they consider that the accredited investor understands and can afford the risks associated with such an investment.

Question 4

Can I reinvest the returns back into the property?

Accepted Answer

Since excess cash flows are distributed to investors, reinvestment in the same property isn’t an option. That said, many investors choose to reinvest their returns into our future offerings.

Question 5

How do I withdraw funds?

Accepted Answer

As a limited partner, you cannot withdraw any amount on demand. You will receive preferred returns when the management team is able to distribute funds, either from the operational cash flow or when the property is sold. You should not invest any funds that you may need at any particular time.

Question 6

Will you reinvest the proceeds from the sale of this property into another property?

Accepted Answer

It depends. If you have invested directly into one of our properties, there may be an opportunity to reinvest the proceeds into another using the 1031 exchange provision of the tax code. As we approach a disposition, we may inquire with investors and assess upcoming acquisitions to determine if a 1031 exchange is feasible. If you invest in the Rise Select Equity Fund, your funds are automatically reinvested upon sale of a property throughout the term of the fund.

Question 7

Do unpaid preferred returns get interest?

Accepted Answer

No. The preferred returns are cumulative but not compounding. Limited partners accrue preferred returns from day 1, but returns will not be paid until the property has stabilized and returns do not earn interest. The preferred returns are not guaranteed and will be paid only when funds are available. Rise as general partner will not receive any share of profits until all accrued preferred returns and the original investment are returned to the investors.

Question 8

Who is an accredited investor?

Accepted Answer

INDIVIDUALS
Individuals (i.e., natural persons) may qualify as accredited investors if they meet any of the following wealth, income, or financial sophistication criteria:
1. Financial Criteria:
 • Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
 • Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year

2. Professional Criteria:
 • Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82)
 • Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company)
 • Any “family client” of a “family office” that qualifies as an accredited investor
 • For investments in a private fund, “knowledgeable employees” of the fund

ENTITIES
Depending upon the structure of the entity or its assets, entities may qualify as an accredited investor.
1. Investments: 
Entities owning investments in excess of $5 million

2. Assets:
The following entities with assets in excess of $5 million: corporations, partnerships, LLCs, trusts, 501(c)(3) organizations, employee benefit plans, “family office” and any “family client” of that office

3. Owners as Accredited:
Entities where all equity (https://www.sec.gov/education/glossary/jargon-z#Equity)owners are accredited investors

4. Investment Advisers:
Investment advisers (https://www.sec.gov/education/glossary/jargon-z#IA)(SEC- or state-registered or exempt reporting advisers) and SEC-registered broker-dealers(https://www.sec.gov/education/capitalraising/building-blocks/broker-dealer.pdf)

5. Financial Entities:
A bank, savings and loan association, insurance company, registered investment company, business development company, or small business investment company or rural business investment company

Please refer https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/accredited-investors (https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/accredited-investors)for more details.

Rise FAQs

invest@riseselect.com