INVESTORS FAQ
I want to become an investor with Verma Capital! How do I get started?
Congratulations on your decision to invest in your future with Verma Capital! Here at Verma Capital, we are fully committed to making your investment experience as simple and as positive as possible. The first step to becoming a proud member of the Verma Capital community is to register on our platform or click the invest now button. Also, be sure to sign-up for an account with us to receive exclusive information about our investment opportunities and assets, as well as access to our newsletters.
Are multiple account types supported by Verma Capital?
If you are anything like most people, you have multiple types of personal accounts including personal investment accounts, joint accounts, self-directed IRA accounts (see below) and entity accounts like Trusts, Partnerships, self-directed 401ks, and LLCs. When you invest with Verma Capital, we work with all types of banks, credit unions, self-directed IRA custodians and trusts.
Can I leverage my IRA to invest with Verma Capital?
Not only can you leverage your IRA to invest with Verma Capital, but you definitely should! Investing in real estate with Verma Capital is a phenomenal way to diversify your portfolio and protect your future. The only requirement for you to begin using your IRA to invest with Verma Capital is that you be the custodian of your IRA account, meaning that you manage it independently. If you are not currently the custodian of your IRA, that is no problem! Simply call the company that currently holds your IRA and inform them that you would like to become the custodian of your account so that you can invest in real estate with Verma Capital . It’s as easy as that!
What is a K-1?
When you become a member of our family of investors, you will receive a K-1. The K-1 is a tax form that is typically used by partnerships like ours to provide you, the investor, with detailed information of your share of the taxable income of the partnership. In general, partnerships like the one you are entering into with us are not subject to state or federal income tax because they issue this K-1 to each investor to report your share of the partnership’s income, gains, losses, deductions, and credits. As an investor with Verma Capital, you will receive your K-1 on an annual basis so that you can include all of those amounts on your tax return.
When will the K-1 be available for Verma Capital investors?
We want to provide you with plenty of time to be able to complete your annual taxes. Therefore, we will provide you with your K-1 by March 15th so that you can turn it over to your accountant.
Am I allowed to add more funds after my initial investment with Verma Capital?
Absolutely! We want to help you grow your portfolio as much as possible, so we would be more than happy to have you invest additional funds as often as you would like to. Once a fund is closed, you will no longer be able to invest in that particular fund which is why it is wise to be proactive. However, if the fund is closed, the good news is that there will be others opening up for you to take advantage of. If you are currently interested in adding more funds, get in touch with a member of our team to discuss your best options.
I don’t live in Texas, can I still invest with Verma Capital?
We were very deliberate in structuring Verma Capital in a way that would allow anyone and everyone to invest with us, regardless of where they live. We don’t believe that you should be limited by your address to grow your future and we would be proud to become your partner regardless of where you live. Just give us a call or click the “invest now” button to get started.
What is a 70/30 split?
The split refers to the portion of the profits that you will be entitled to as a member of our family of investors. It can also be referred to as “carried interest”. In exchange for having the opportunity to leverage our experience and knowledge to select the most profitable properties on the market and extract their maximum value, you will share a portion of those profits with us.
How long is the term of Verma Capital’s fund?
Here at Verma Capital, we work with 5-year terms and 3-year extension. Over the last 25+ years of successful real estate investing experience, we have come to realize that this structure is what is in the best interest of our family of investors to produce the optimal results in an ideal timeframe.
When can I expect my first payment from Verma Capital?
On average, you should plan to allow approximately 45 days for us to close on a property and balance all of the accounts before we experience a positive cash flow and can begin issuing payments to our investors. Once we do establish that positive cash flow, you can expect to receive monthly payments from Verma Capital. This is a rare perk that we believe firmly sets us apart from other firms that refrain from sharing their positive cash flow with investors.
What is the difference between investing with Verma Capital and a REIT?
Everything! It is important to understand that the main reason that you are so wise to invest in real estate is that real estate is a hard asset. It is tangible and provides you with the kind of control that you won’t experience with investments like the stock market or a REIT. In essence, a REIT is a piece of paper that is not backed by anything, meaning that you inherit a far greater set of risks of losing most or all of your money. When you invest with Verma Capital, you are an actual real estate investor with all of the shiny perks and benefits of being a real estate investor but with less hassle and less risk than if you invested alone. We do not provide you with a liquid asset that experienced volatile fluctuations in value, but rather a tangible asset that stands the greatest possible chance for appreciation and reward.
Are there risks involved with investing with Verma Capital?
Just like with any investment, there are some risks involved. However, unlike many other investment options like the stock market, the risks are conservative. Here at Verma Capital, we have meticulously structured our funds to provide our family of investors with the best possible opportunities for success and financial growth. It is crucial for you to understand that when we select a property, we do so firmly believing that there is a minimal amount of risk possible, based on our 25+ years of successful investing in the Houston market. Remember, that our money is involved as well and we would never select a property that we didn’t have full confidence in, along with the research and analytics to back it up.
What is an accredited investor?
The term “accredited investor” is a term originated by the government, not Verma Capital. By their definition an accredited investor is a natural person that has either:
- Earned a minimum of $200,000 (single) or $300,000 (married) in each of the last two years and can reasonably expect to do the same for the current year.
Or…
- Currently has a minimum net worth of $1 million, either single or married, above and beyond the value of their primary residence.
The income test will require that you satisfy those thresholds for three consecutive years either alone or with a spouse consistently. For example, you cannot satisfy two years based on individual income and the following two years based on your income with a spouse. The only exception to this rule comes when you are married within those three years and you can still satisfy the requirements as a single person prior to the marriage and as a joint entity afterward
Do I have to be an accredited investor to invest my money with Verma Capital?
Yes. Our investment opportunities are monitored under Regulation D Rule 506(c) which states that we can only offer our funds to accredited investors who have met the requirements above.
What happens if Neal passes away?
In the unfortunate situation that Neal should pass away, you can rest assured that the fund will continue to operate and the real estate will continue to generate cash flow as it had before. Verma Capital will remain in place and our team will continue to push forward to generate the best possible profits for our family of investors.
How much of Neal’s money is invested in Verma Capital?
From the beginning, Neal treats every deal as if it is his own. That means he enters each property fully prepared to be the sole investor. However, as more and more investors like you get involved, his share of the profits decreases to be able to pay the investors. This shows every investor that each property is fully backed by Neal’s years of experience and own interests so they can invest with confidence.
Why is the IRR only 15%?
First and foremost, it is important that you understand that 15% is an estimate and not an exact number. However that is the minimum percentage that we hope to yield with each property at this point. Let’s say for example that the IRR is 15% and you invest $100K over ten years. You can expect to yield $250,000 at the end of that ten years. Should we only hold the property for 1 year, you would still be paid back $115K for your $100K initial investment. Again, we shoot for an even higher percentage but that is a general minimum. Still, at that 15%, you should earn 60 times what the banks would have paid you.
The funds described herein are open to “accredited investors” only, through an offering made in accordance with Regulation D, Rule 506(c) of the Securities Act of 1933, as amended. In purchasing securities through a 506(c) offering, we are obligated to verify any participating investor’s status as an “accredited investor” in accordance with Rule 501 of Regulation D. Investors should consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. We do not make any representations as to the accuracy or completeness of the information contained on this website and undertake no obligation to update the information. Past performance is not an indicator of any future results. All investments contain risk and may lose value. This does not constitute an offer to sell or a solicitation of interest to purchase any securities or investment advisory services in any country or jurisdiction in which such offer or solicitation is not permitted by law. Offers are made only by private placement memorandum or other offering materials. To obtain further information, you must complete our investor questionnaire and meet the suitability standards required by law.
