The investment process begins by completing the intake form at the link here. We’ll connect with you to schedule a meeting to determine if investing with Patriot Holding's would be mutually beneficial and if you meet our qualifications. You will be provided access to our latest investment based on availability.
- Once you’ve been given access to our portal, you will be required to verify qualification status by filling out the Investor Questionnaire.
- Once your qualification status has been confirmed, you will be given access to the Offering Package that will include the Private Placement Memorandum (PPM) and supporting documents which may include, but not be limited to an Operating Agreement (OA) and Executive Summary.
- Sign the Subscription Agreement.
- Receive funding instructions and fund your investment through wire, ACH, or check.
- Once Patriot Holdings receives your funds, you will be given an Ownership Certificate evidencing your ownership of the securities subscribed to.
- Patriot will allocate the funds to the applicable commercial real estate project.
- If a Preferred Return is offered in offered in the investments, your Preferred Return will begin accruing and payment will be distributed pursuant to the terms of the PPM and the OA.
- You will receive investment updates for your investment periodically (depending on the fund).
- You will receive any major announcements via email or text as they arise.
Each Patriot Holding’s investments is typically structured through an LLC, but we may consider other structures including debt structures in the future. As an investor, you will own a membership interest in the LLC. Through this structure investors have direct ownership in the individual investments or assets in the Fund, giving you access to tax benefits. Full details of the structures are offered in the PPM and OA.
An investment in Patriot Holding's should be considered long-term. Investors should expect to commit their investment for a minimum of five (5) years and up to ten (10) + years depending on the Fund.
Patriot currently seeks income-producing investments to meet the goals and objectives of our investors. We follow key indicators with established history and long-term viability. We may consider other segments and markets we consider viable based on our analysis and due diligence.
You can invest with cash or funds held through trusts, LLCs, LPs or corporations. In addition, you can invest through self-directed IRAs, self-directed eQRPs (Enhanced Qualified Retirement Plan aka Self-Directed Solo 401k Plan).
REITs (Real Estate Investment Trusts) are publicly traded investments focused on commercial real estate, an investment in Patriot Holding's is a private investment open to only qualified investors. As publicly traded equities, REIT stocks are highly correlated to the stock market. Investments in fractional ownership interests of Patriot Holding's funds are private investments shielded from stock market volatility.
Additionally, direct fractional ownership in the form of LLC or LP interests provides investors access to all of the tax advantages that are unavailable to REIT Investors. REIT management typically makes the majority of their fees through transactions before any profit distributions to investors; while the bulk of Patriot Holding's management compensation comes after our investors make money.
Although varying with the Fund, distributions are typically made on a monthly basis commencing after an investment has been developed or stabilized as the case may be.
Yes, as long as the Fund is still open and accepting investments, you can add to your funds.
Patriot intends to provide investors with Fund reports on a quarterly basis, which could include updates on the activities and operations of the Fund. Any other relevant non-periodic announcements will be made via email.
All of our investments are open to Accredited Investors and some may allow a limited number of Sophisticated Non-Accredited Investors possessing sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.
Accredited Investors are individual investors who either have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have earned income over each of the last two years of at least $200,000 and have the expectation to make the same amount in the current calendar year. If you don’t qualify under that standard, you can choose to combine your income with your spouse and the new threshold for qualification would be $300,000.
In addition, entities such as LLCs, partnerships, corporations, nonprofits and trusts may be accredited investors. Entities qualifying as Accredited Investors include but are not limited to: any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or any entity in which all of the equity owners are accredited investors.
Passive investments in private real estate offerings offer a variety of tax benefits. Some of the most common real estate related deductions include:
- Depreciation (Accelerated)
- Mortgage Interest
- Property Tax
- Operating Expenses
Gains from investments held more than a year are also taxed at the capital gains rate. In a private real estate investment fund, these deductions are distributed to their partners on a pro-rata basis and reported on each partner’s annual K-1. Additionally, deductions considered passive losses can be used to offset passive income while any other deductions can be used to offset ordinary income to reduce tax liability.
This is not professional tax advice and should not be relied upon for making investment decisions. Investors should consult with their financial advisor, accountant and/or tax attorney for tax advice specific to their particular needs and objectives.
Like an investment in public equities, your investment in an LLC or a limited partnership limits your liability to the amount of your investment. Additionally, the passive investors (i.e., LLC members or limited partners) carry no lending risk with no personal guarantees attached to any secured lending obtained.
While Patriot Holding's management may collect reasonable management fees (depending on the Fund) including but not limited to acquisition, asset management, property management fees, etc., the bulk of management compensation comes from a share of the profits only after the investors have made money. Any fees are outlined in the PPM.
As with stock of public companies, an equity investment in private companies cannot not be guaranteed. Although Patriot Holdings will subject every investment to its rigorous vetting and analytical process to mitigate risk and ensure the highest likelihood of success; we cannot eliminate all risk and guarantee a 100% likelihood of success. Because it’s impossible to anticipate all future events and predict the effect of all potential factors associated with the associated Fund assets, we cannot guarantee your investment. Guaranteed investments - typically fixed-income assets - typically offer low returns as opposed to the potential returns from an equity investment like one made in Patriot Holdings.