How it works
We’re rolling out the red carpet for you.
Are you ready to join us in breaking into the gilded world of real estate? Read on for how to become a direct share owner in the investment funds we’re launching.
“The problem with real estate is it has always been the Big Boy Club. You must have a lot of money to start. FundRebel allows the person who makes an honest day's living to join the greater real estate community and invest at a higher level.”
- Allen Konstam, FundRebel Chief Operations Officer
All About Our Structure
We already outlined what a REIT is and why FundRebel is unique on this post. Let’s now chat how to invest your money and reap the rewards.
FundRebel is a crowdfunding model of real estate investing. The reason that these types of REITs are gaining such attention is because - depending on if they are Regulation D or Regulation A - they could be open to both accredited and non-accredited investors alike, which is a fairly new concept. Every time we launch a new fund, as the sponsor, FundRebel LLC will file a new SEC process. Each fund is on its own freestanding legal entity.
We are a Tier 2 Regulation A, meaning that in a 12-month period we can raise up to $75 million (our flagship investment opportunity, Fund Dean, is already open for share purchase until it reaches that cap). There’s one regulation: in order to help people avoid overextending themselves, a non-accredited investor cannot contribute more than 10% of their net worth/annual income. Regulation D is a more highly-regulated fund structure that requires every investor to be an accredited investor; it’s the kind of traditional real estate investing that isn’t accessible to the likes of all of us.
How FundRebel Funds Work
"The barrier to entry is, ‘How much capital do you have? How much credit can you sign for?’ If you don't have capital and can't sign for credit, well, then you can't have real estate, and you can't enjoy the time-tested manifested way of doing it. Therefore…FundRebel."
-Husein I. Sonara, FundRebel Chief Strategy Officer
Let’s take our initial fund - FundRebel Dean - for example:
- Dean launches and opens up for investing.
- After 12 months of raising capital (or reaching $75 million, whichever comes first), the fund closes and shares cease to be issued.
- At the point when Dean reaches $1 million we start acquiring portfolio assets. It does not need to be fully subscribed in order to operate.
- Secondary training can begin after 12 months, where investors can begin trading shares back and forth. At this point, we will open up our next fund.
- Dividends are paid out on a quarterly basis based on the portfolio net income.
- After a fund maturity of around five years, we will sell/liquidate the assets and distribute net proceeds among shareholders.
- Preferred interest earnings are paid - offering a 6% preferred return to investors.
So while FundRebel pays dividends on a quarterly basis based on net income of the portfolio, the real money - where you get your true bang for your buck - is upon fund maturity. Short term liquidity is awesome, but the big reward is the equity pop at the end.
What Our Future Looks Like
While we’re a multi-fund investment platform perennially rooted in real estate, we have our sights set on entering exciting new sectors that are presently extremely difficult to take part in (Think BIG!). Challenging and disrupting the norm and celebrating the potential we all have is our mission. As rebels, part of making our future is pioneering new pathways to industries and opportunities that didn’t previously exist. Our leadership team is composed of industry experts, dynamic leaders who are also personally investing in the fund, further ensuring the growth and success of FundRebel and its offerings. They’ve already been around the block and are passionate about bringing the average American worker with them on their next round.
The Risk of the Reward
Looking out for your money also means ensuring that your money can multiply instead of sitting stagnant. We seek to be transparent in all that we do, teaching you about real estate investing, learning from the greats, circulating informative resources, and offering wealth-changing opportunities.
We’re going to straight up tell you that, along with all other types of investing, real estate investing has its risks. We’re also going to harp on the fact that real estate can be extremely lucrative and that, until only recently, it was an exclusive opportunity for the wealthy to generate more wealth.
So here’s your opportunity to be #RebelMade. You’re invited to pull up a chair at our table.