We are here to help. Whether you are new to real estate investment or familiar with the process, we recognize you may have questions. Below are some of the most frequently asked questions we receive. If you don’t see the question or answer you are looking for here, please contact us.
Please contact us.
Life Front Communities investors are high-net-worth individuals, family trusts, family offices and institutions.
Our target properties generally range in value from $5 million to $50 million +.
To invest with us, you must be an accredited investor. As defined by the Securities and Exchange Commission (SEC), individuals must have income of over $200,000 per year ($300,000 per couple) and the expectation that it will continue, or a net worth of $1,000,000, not including the value of your primary residence.
Our real estate investment opportunities have been underwritten by real estate professionals, but that does not exclude them from potential losses. Each investor must do their own due diligence on any specific opportunity before making a decision to invest in it, including reading the complete sponsor-issued information memorandum.
We generally require a $100,000 minimum, unless otherwise approved. Minimums may vary per deal.
Transmitting $50,000 or more (Life Front Communities’ minimum investment amount) requires the use of a wire transfer. Specific wiring instructions, including escrow account number, will be provided by Life Front Communities for each investor.
Distributions depend on the type of investment, amount of leverage and other factors. Normally, if cash flow permits, we make distributions quarterly. We encourage you to read the Distribution section in the Investment Memorandum carefully.
The investment period varies depending on the investment profile, and generally ranges from 3 to 10 years.
Most real estate equity investments do not schedule or plan capital calls. However, if funds are required for an unexpected need, there will be provisions for how an unexpected capital call will be treated by the sponsor. There will also be an explanation of how the capital call will affect the investor’s dilution of the investment if the investor chooses to not make its pro rata share of the capital call.
As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
In real estate, a 1031 exchange is a swap of one investment property for another that allows capital gains taxes to be deferred. If you have sold your “down-leg” and are looking for an “up-leg” property, Life Front Communities can help facilitate your 1031 Exchange. For more information, please reach out to us in the “Contact” section.