Roman Capital opens opportunities for the everyday investor to access high value private real estate investing through its non-traded REIT (real estate investment trust).
Crowdfunding allows multiple investors to pool their money and collectively invest in larger real estate projects than they could on their own.
As an investor in a crowdfunding deal, you, along with dozens or even thousands of other investors, purchase a protein of interest in a property or a real estate project, similar to owning shares in a company. Capital that is raised goes to the real estate developer to invest in building, renovating or recapitalizing the property, which generates ROI for each investor.
Roman Capital is a privately held vertically integrated real estate investment firm specializing in speculative Class A residential development.
We allocate our alternative investment strategies and align them with investors’ investment objectives, risk profiles and liquidity preferences to offer an optimal balance of risk-adjusted returns and attractive investment performance. It is because of this thoughtful, intentional approach, and our unwavering pursuit of performance, that we have been deemed the go-to in our market.
Review active deals and find one that matches your investment objectives. In order to see the full details on each property, you’ll need to create a free account.
Once you find a match, choose your investment amount and securely submit your investment offer. Digitally sign the document and submit online. Once your investing documents have been approved you’ll fund your offer via wire, ACH, Check, or Cyrpto.
Now you own direct equality in a real estate property. Monitor your investment online and get updates from the sponsor, manage tax documentation, choose how you want to receive distributions and more. You’ll see all your investments from one main dashboard.
Balance your portfolio and supercharge your net worth all from your phone.
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INVESTMENT OPTION 1 WITHOUT FIXED HURDLE RATE – 2% & 20% MODEL
OPTION 2 WITH FIXED HURDLE RATE – 2% / 10% / 22.5% MODEL
WITHOUT FIXED HURDLE RATE EXAMPLE
For an example of how two and twenty works, imagine that you have $2 million to invest. You choose to place that money in a fund charging two and twenty. Over the course of one year, you’ll pay roughly $2 million x 2% = $40,000 for the 2% management fee. If during that year, the fund returned 20%, your $2 million would grow by $400,000 to $2.4 million. The fund’s manager would be entitled to 20% of the fund’s gain as a performance fee, which would translate into $80,000 (20% of $400,000) for you.
So you’d end up paying a total of $120,000 ($40,000 + $80,000) in fees under the two-and-twenty fee structure.
Net of the fees, your gain would be $2.4 million minus $120,000, or $2.28 million. Remember, the fund’s return was 20%, but after paying the fees, your $2 million has become $280,000, which is a gain of 14%. If the fund instead loses money—for example, losing 10% of its value—your $2 million would be eroded to $1.8 million. You’ll still have to pay the 2% management fee, which would amount to $80,000, leaving you with $1.72 million, or an equivalent 14% loss on your initial investment.
WITH FIXED HURDLE RATE EXAMPLE
We charge the 22.5% fee on returns over a 10% benchmark. This is sometimes called a hurdle rate.
For example, consider investing your $2 million in a fund that has a 2/22.5% fee structure, along with a hurdle rate of 10%. If in a given year, the fund returns 11%, you’d be on the hook to pay both the 2% management fee and the 22.5% performance fee; however, if the fund’s return is 9%, you’d only have to cough up the 2% management fee.
One reason two and twenty has become popular among fund managers is its tax treatment. The 22.5% performance fee, or carried interest, is typically treated as capital gains rather than income, meaning it gets taxed at a lower rate. This lets fund managers pay less tax on the money they earn from managing their funds.
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