If you missed the live Q&A webinar, watch/listen/read below.
We had some fantastic questions from the community about our various funds, general questions on ‘how this works’, real estate as a whole, and more.
Here is some of what we talked about last time:
We already had a ton of questions that a lot of people put into the registration form, so thank you so much for that. We encourage everybody to read all of our disclaimers, especially our offering circulars, regarding the offerings that we offer here on our Caltier platform.
We are going to be talking a little bit about Caltier REIT 1 today, which is currently under development.
Depending on where you look and what numbers you put together, many people are talking about this $150 trillion of private wealth. Let’s classify that. That is essentially what we would call retail investors. You’ve seen this movement over the last few years, Robin Hood being a great example, where they have pushed away, blown open the doors, and lowered the barriers for the everyday investor, probably for most of us or all of us on this call.
Unless you’re a family office, a private equity fund, a hedge fund, or a large institution, we’re what’s called retail or everyday investors. Typically, in the past, it’s been very hard to get into or even find, but once you find them, you can even invest in what we would call alternative investments. Commercial real estate and multifamily real estate are being categorized and put into that bucket.
Why has it been so hard?
Typically, there’s been a glass ceiling. A lot of these deals are off-market. They’re only offered to these institutional investors, all these higher-net-worth folks, right at the top of the list there. And quite frankly, you need a lot of money to put into them. Most of these investments would require tens, if not hundreds, of millions of dollars to participate. So there’s been a real fence in the way for the majorities. And as we’ve all seen, there’s more than just us out there. There are lots of people out there who are offering opportunities like this. And so the rising tide lifts all ships. Parker and I are all about it. It’s a massive market, and those $150 trillion are made for you and me.
This is wealth in America, which is, looking for these types of investments to diversify outside of stocks, bonds, shares, and typical things like that. Obviously, crypto is another good example. They’re looking for other opportunities that have typically been very difficult to get involved in. Interestingly, institutions have invested in these investments, typically between 9 to 10 times more. If you look at the allocation of their portfolios, if you look at ultra-high net worth and institutional investors, whatever amount of money they’re investing, they typically have a much bigger allocation into this alternative investment. I’m not providing investment advice here, but our understanding is they do it to hedge against ups and downs in the stock market. Again, the problem is that it’s been very difficult for everyday investors like us to be able to participate in these types of investments. That’s really why Parker, Travis, and I started the company in the first place: to provide a platform and an opportunity for everyone to get involved.
We have some opportunities, for example, with our new fund, you can start with $189. Our portfolio fund is $500 minimum, first investment, and then a $50 subsequent minimum. We’re really trying to keep these numbers down so it allows as many people as possible to get involved.
Just a little overview of the structure of the company
We have CalTier Inc. Then we have CalTier Fund One. CalTier Fund One is our real estate portfolio fund. CalTier Inc. Reg A is our latest fund where you can actually participate and invest in the company. That’s pretty exciting. A lot of people have asked for that. We always want to go to our community first. So not only can you invest in real estate, but you can also now invest in the company with us. It’s the same company in which Parker and I have ownership. We then have what we call SPVs, or special purpose vehicles. These are typically for our one-off deals, often for our accredited investor community.
CalTier Reit One
We are testing the waters. That is not currently active. That is in development with our attorneys. We are looking forward to launching shortly. We’re pushing that as quickly as we can. It takes time. We have to do the paperwork with the attorneys. There’s a lot of compliance that needs to be worked on. It has to then go to the SEC, and they have to do their review, etc. Then there is CalTier Advisors, which is a registered investment advisor company. CalTier, Inc. totally owns it.
For those of you who have actually registered an account on our platform, when you registered, you would have had those questions about what you were looking to do. What are your goals? And that’s part of the counter-advisory and compliance process. Counter advisors then give you suggestions about how you might want to invest.
Properties that are part of our portfolio
We have a growing real estate portfolio. Typically, we’re looking for multifamily value-added opportunities. These are apartment buildings that may have been owned for a little while or haven’t been renovated for a while. We see some opportunities to create value in either a change in management or maybe some renovations, whether that’s exterior or interior renovations.
That’s 175 units in a really growing area in New Port News, Virginia, which is right around the Virginia Beach area and just really prime for many solid tenants with good careers. Maybe they’re military or government contractors, but they pay on time and are good renters.
That’s the one we just got under contract. It’s three buildings consisting of 45 units in DC.
That’s in Houston, Texas. It’s in a great location, which is really pretty, and has many scenic walks, parks, and convenient stores nearby.
Provo, Utah, which is home of BYU, or Brigham Ann University, is a beautiful project.
For more information about our assets, please click here.
IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. REGULATION A OFFERINGS ARE SPECULATIVE, ILLIQUID, AND INVOLVE A HIGH DEGREE OF RISK, INCLUDING THE POSSIBLE LOSS OF YOUR ENTIRE INVESTMENT.
CalTier Inc (and companies) is offering securities through the use of an Offering Statement that the Securities and Exchange Commission (‘SEC”) has qualified under Tier II of Regulation A. While the SEC staff reviews certain forms and filings for compliance with disclosure obligations, the SEC does not evaluate the merits of any offering, nor does it determine if any securities offered are “good” investments. Securities offered via Regulation A through Dalmore Group LLC, registered broker dealer, member of FINRA (www.finra.org) , member of SIPC (www.sipc.org) acting as broker of record. This profile may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its markets or industry. These statements reflect management’s current views regarding future events based on available information and are subject to risks and uncertainties that could cause the company’s actual results to differ materially. Investors are cautioned not to place undue reliance on these forward-looking statements as they are meant for illustrative purposes, and they do not represent guarantees of future results, levels of activity, performance, or achievements, all of which cannot be made. Moreover, although management believes that the expectations reflected in the forward-looking statements are reasonable, neither CalTier Inc nor anyone acting on its behalf can give any assurance that such expectations will prove to have been correct nor do they have a duty to update any such statements to conform them to actual results. By accessing this site and any pages on this site, you agree to be bound by our Terms of Use and Privacy Policy, as may be amended. Securities by CalTier Inc are offered and distributed pursuant to Regulation A through the Dalmore Group LLC, a registered broker dealer, member of FINRA (www.FINRA.org) and member of SIPC (www.SIPC.org). These Securities being offered are highly speculative, you can lose your investment. Please see the Offering Circular here: Offering Circular
