Frequently Asked Questions

Getting Started

Light Tower opportunities are currently open to Accredited investors only.  That generally means:

  • You earned income that exceeded $200,000 (or $300,000 together with your spouse) in each of the prior two years, and reasonably expect the same for the current year, OR
  • You have a net worth over $1 million, either alone or together with your spouse (excluding the value of your primary residence).

You can learn more about these requirements, as well as information on how business entities and trusts can participate, at this SEC link.

At this time, opportunities are only open to residents of the USA.

Yes!  If you have a self-directed retirement account, you may be able to invest through that account.  Consult your investment custodian and tax advisor for details.

Opportunities typically have a minimum level for investment of $100,000.

Acceptable methods for funding an investment are wire transfers and certified checks.

About Your Light Tower Investment

You will receive access to an Investor Portal, which has information on projects and status.  You will also receive quarterly updates and statements.  If you have other questions, answers are always just an email or phone call away.

Distributions are completed electronically to a US bank account.

You will receive a K-1 tax form.

About Private Real Estate Investing

One of the most significant downsides of real estate investing is that your investment is not liquid.  In other words, you must commit your money for a period of years.  It’s not like the stock market where you can trade in and out quickly.  So don’t consider making an investment if you can’t leave it in there for a period of years or decades.

 

While this is a potential negative, this can also be a positive.  The investment requires you to commit your money for a period of years, not days, so that you can realize the benefits of compounding.

No.  You must have excess money you will not need for a period of years.  If you will have the need for these funds within 5 to 10 years, you should not invest in private real estate and look for a more suitable short term investment.

There are several tax benefits you can realize through real estate investing.  To provide more information, we have created a short eBook on the topic.  You can download the free eBook here. Consult your tax professional for any tax advice.

Recent tax law changes created “Opportunity Zones,” which are economically disadvantaged areas in various parts of the country.  The new tax provision allows you to take capital gains from existing investments and roll it into Qualified Opportunity Funds (which invest in Opportunity Zones).  This can provide you with a variety of tax benefits as long as you hold the funds for at least five years.  First, you can defer the capital gains on your previous investment for a number of years.  You can also realize either a 10% or 15% reduction in your capital gains due after certain holding periods.  Then, your capital gains on the Opportunity Fund investment itself can be tax-free if held for 10 years or more.

 

To learn more about how Opportunity Funds might help you reduce your taxes, and learn about the specific time frames that apply, download our free eBook here. Consult your tax professional for any tax advice.

Why Invest in Commercial Real Estate?

Tax efficiency, reduce volatility, risk management.

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