Gonen Statutory Trust (GST) & Real Estate Fund
1. What is the minimum investment requirement?
To maintain institutional quality and comply with regulatory standards, our typical minimum investment is $500 for CF investors and $5,000 for for the fund investors. These minimums ensure the fund remains manageable while allowing for diversified fractional ownership.
2. How often are distributions paid?
Distributions are typically paid semi-annually. Our goal is to provide a consistent, passive income stream. We target a “Preferred Return” (often 7–15%), which is distributed to investors before the Fund Manager participates in profits.
3. Is this a “1031 Exchange” compliant investment?
Yes. Because the GST is structured in Wyoming the IRS views your investment as “Direct Ownership” of real estate (per Revenue Ruling 2004-86). This allows you to roll proceeds from a previous sale into the GST to defer capital gains taxes indefinitely.
4. How long is my capital “locked up”?
Real estate is an illiquid asset. Investors should have a mid-to-long-term horizon, typically 3 to 5 years. This “Hold Period” allows us to execute our value-add strategy and wait for an optimal market window to sell the asset for maximum appreciation.
5. Who can invest in the GCC?
Currently, our offerings are open to anyone for the crowdfunding and to the Accredited Investors and the individuals with a net worth of over $1M (excluding their primary residence) or an annual income exceeding $200k ($300k for couples).
6. What happens if a tenant leaves or the building needs repairs?
One of the primary benefits of the GST is that it is 100% passive for you. The Trust appoints a professional “Sponsor” and “Property Manager” to handle all leasing, maintenance, and capital improvements. These costs are factored into the fund’s budget so you never receive a “capital call” for a broken water heater.
7. How do I track my investment’s performance?
Investors receive access to a Secure Investor Portal. Here, you can view monthly statements, year-end tax documents (K-1s), and semi-annually “State of the Portfolio” reports that detail occupancy rates and property valuations.
The Basics of Crowdfunding
Real estate crowdfunding allows individuals to pool their money to fund large-scale projects like apartment complexes, industrial parks, or retail centers. Because it involves public solicitation of capital, it is governed by strict SEC rules (Regulation Crowdfunding).
Here are the most frequently asked questions regarding real estate crowdfunding, categorized by investor and sponsor interests.
- What is the difference between Equity and Debt crowdfunding?
- Equity: You own a share of the property. You profit from rental income and property appreciation but take more risk if the value drops.
- Debt: You act as the bank. You lend money to a developer and receive a fixed interest rate. It is generally lower risk but has capped returns.
- Is crowdfunding the same as a REIT? No. A REIT (Real Estate Investment Trust) is a company that owns a large portfolio of properties. Crowdfunding typically allows you to pick one specific project (e.g., “The 5th Street Apartments”) rather than a massive pool.
- What is the minimum investment? the crowdfunding platforms often have lower barriers, with some projects starting as low as $500 to $5,000.
Investor Eligibility & Limits
Risk, Returns, and Fees
- How do I get paid? Returns are distributed semi-annually. For equity deals, you also get a “big check” when the property is sold (the exit).
- Can I get my money out early? Generally, no. Crowdfunded real estate is “illiquid,” meaning your money is locked for the duration of the project (typically 3–5 years). There is rarely a secondary market to sell your shares.
Sponsor & Developer Questions
- How much is raise through crowdfunding? Under current SEC Regulation Crowdfunding (Reg CF) rules, you can raise up to $5 million in a 12-month period.
- The paperwork needed to launch a campaign? Must file a Form C with the SEC and provide financial disclosures, including GAAP-compliant financial statements.
- Is a intermediary needed? Yes. Crowdfunding offerings must be conducted through an SEC-registered broker-dealer or a “Funding Portal”
Ready to take the next step?
Contact GST today to schedule a private consultation.