Throughout the process of SaundersDailey.com identifying an investment, offering it up for investors, closing on the property, and managing income and expenses and profit for its investors, there are several partners we call on for support. Not only do these partners help us in various aspects of the process, but they also provide an additional set of eyes on what we do so our investors can be assured of quality and professionalism. First off, we use good lawyers. We engage Mark Roderick, an expert in the areas of law that pertain to crowdfunding, at Flaster/Greenberg PC to direct us in proper methods of running an investment site and issues related to the SEC. We engage Winthrop & Weinstine on a local level to set up each individual LLC that owns each investment.
Additionally, all of the SaundersDailey.com accounts will be audited on a regular basis by our accounting firm, Clifton Larson Allen. SaundersDailey.com partners with Crowdentials to accredit all of our investors. FundAmerica provides all escrow services to SaundersDailey.com as well some investor reporting services. Every time SaundersDailey purchases an investment property, a licensed real estate broker who has a specialty in multi-family residential investment property will represent us as buyers.
By enlisting so many partners to the process, we ensure that we have specialized experts working in each facet to provide the investor with the assurance that there are several eyes watching the process at every turn.
When you visit SaundersDailey.com, you will see information about who we are and what we do. You will also see basic information about investments that we are offering. Obviously, you’ll want to see more information and analytics about investment return and risk before you invest your hard-earned money in one of these properties. Many of the investment opportunities that we have under contract are with sellers that don’t want the wider public to know that they are selling. Thus, we attempt to keep their information secured.
To receive more complete financial information, property information, and investment projections, register with SaundersDailey at app.saundersdailey.com. You’ll immediately be able to explore the application and see detailed information about our active funds. Before you invest, we ask a few basic questions about you and your investing status. We will never sell your information to anyone else and we will not market to you relentlessly.
Each fund listed on SaundersDailey.com will include a downloadable prospectus, financial information, and photos. On top of this information, we will have at least one showing of the property or informational meeting (or both) for each investment opportunity. Once you are satisfied as to whether or not you’d like to invest in a fund, you move to the investment stage.
Now that you have looked over all of the information offered about a particular fund and come to the decision that you would like to participate, simply click “Invest.” Only accredited investors† can invest on with SaundersDailey under current regulation. We make the accreditation process easy for you by partnering with Crowdentials, a widely trusted partner. Their team will ask relevant questions and request documents from you. Once complete, Crowdentials will pass along a confirmation to us that you are accredited. After you are verified, just let SaundersDailey.com know how much you’d like to invest. These funds can be ACH debited out of the account you choose by FundAmerica, an independent escrow company that is FDIC insured. The funds used to actually acquire a property never pass through the accounts of SaundersDailey.
† In broad strokes, an accredited investor must have any of the following three qualities: 1) An individual income of $200,000/year for the last two years, 2) A household income of $300,000/year over the last two years, or 3) A net worth of at least $1,000,000, not including your primary residence. For more information, visit our Accreditation page.
Each investment has a deadline of when we need to have raised enough funds to close the transaction. If this deadline is not met, one of two things happen: 1) We ask the seller of the property if they are willing to push back the closing by another 30 days and we ask the investors if they are willing to have their funds in escrow for another 30 days in an effort to close the transaction. If all parties are willing, we delay everything by 30 days and hope to raise enough capital in the period of time. 2) We cancel the Purchase Agreement on the property and all money is returned to the accounts of each investor.
Each investment will have a minimum contribution of funds for each investor. This amount will vary based on each investment. The total cost of acquisition of the property in question is calculated (and disclosed on SaundersDailey.com) and then divided by 900 (which is the total number of shares for sale in each investment.) Shares are sold only as whole shares and are not sold by the fraction and the minimum dollar amount of an investment must be in excess of $2,500. Therefore, if each share of an investment costs $900, the minimum investment would be 3 shares for a total of $2,700.
SaundersDailey.com makes money in three ways: 1) We charge a 3% fee on your initial investment. So if you invest $5,000 we take a $150 fee. This covers the cost of the accreditation service, the escrow service, and defrays a bit of the cost of our website and other technology. 2) With every investment a total of 1,000 shares are issued. SaundersDailey.com retains 100 of those shares and the entire cost of the investment is divided by the remaining 900 shares. Thus, SaundersDailey.com becomes a 10% owner of the property and becomes the General Manager of the partnership that owns the investment property. SaundersDailey.com likewise will receive 10% of all quarterly profits and 10% of the realized appreciation once the investment is sold. SaundersDailey.com does not take any commission or fees from your quarterly profits or realized appreciation (so if you earn $1,000 on your investment, you get a check for $1,000).
In return for being a 10% owner of the property, SaundersDailey.com will be in charge of all investor relations, issue all needed IRS documents, hire Clifton Larson Allen to audit our books, hire attorneys on a national and local level to advise on the proper administration of our partnership, etc. 3) When we purchase a property we will always be hiring an outside and independent real estate brokerage. This brokerage will be paid 3% for representing us. If the seller is paying any portion of the commission our costs of commission will be lowered. Saunders Real Estate Investment, LLC, which is a partner in SaundersDailey.com and a licensed brokerage in the state of Minnesota, will receive up to a 50% referral fee on the commission given to the above-mentioned independent brokerage.
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