Frequently Asked Questions
All investments carry risk. Be sure to read our investment disclosures and consult with your financial and tax advisors before making any investment decisions.
Questions About Our Relationship
About Eikon Investments
Eikon Investment Group, LLC is a Tampa Bay-based private equity real estate investment firm focused on acquiring opportunistic and value-add investment portfolios to help investors build and preserve wealth. We acquire, develop and operate multifamily real estate across fast-growing markets in Florida and the rest of the U.S. Sun Belt region.
By becoming an investment partner with Eikon Investment Group, investors can build their own professionally managed portfolio of income-producing real estate assets. For as little as a $10 thousand investment, investors can enjoy the benefits of real estate while we manage the property operations with our simple, transparent investing process.
To align our interests with our clients, we invest our own capital into our deals. Additionally, all members of Eikon Investment Group’s Investment Committee are obligated by policy to invest their own personal capital.
We also structure all of our deals to compensate based on asset performance, not acquisition volume. As true partners, the only way Eikon will make money is if our clients do.
Finally, we believe that our deals should stand on their own merit so we do not pay others to sell our investments and our deals are not offered by commission-based advisors.
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Eikon Investment Group buys real estate directly and is not a middle man or a broker. We invest our own capital in all of our deals as true partners with our investors to align our interests. Our entrepreneurial strategy creates inspiring properties that generates cash flow. We aim to generate the highest risk-adjusted returns for its investors by acquiring and managing high-quality real estate opportunities.
- We incentivize asset performance by investing our own capital and linking our returns to the performance of yours first and foremost. REITs are typically centered around transaction fees or recurring administrative fees.
- Our investments operate through an LLC structure, which means that all tax benefits (such as depreciation and interest expense) pass through to investors. REITs are designed so the tax advantages are captured by the REIT, and you are taxed at ordinary income rates.
- REITs take investor money upfront, creating pressure to invest money, which they either invest in cash or public securities. Origin operates under a called capital structure, which means that we ask for capital only after we’ve found a property that meets our financial threshold.
- We provide quarterly updates on our investments and provide full transparency into our investments and process. Private REITs are not obligated to provide investors with similar transparency, putting more power in your hands.
Eikon Investments takes the security of our users’ data seriously and we consciously take steps to ensure all information remains secure.
We strongly emphasize security in our platform at every level of our investment process. We expect all elements of our platform and process to adhere to and exceed industry standards for cyber security and data redundancy. Through audits and reviews, we maintain the integrity of our system to give our clients peace of mind. Additionally, Eikon Investments works with third-party services in an effort to provide our customers with the most efficient and secure experience possible.
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To maintain integrity in our investment process and the proper transfer of capital, all investor funds are handled by a third party administrator, as directed by the Investments Director in accordance with the operating documents. Funds are generally transferred using standard ACH transmittal procedures.
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Our investors can access updated account information 24/7 by logging into the Eikon Investments website. By entering our secure investment portal, investors can see relevant information and documents regarding the property, their investment, and taxes due at year’s end. Additionally, Eikon Investment Group will share detailed asset management updates quarterly via email.
Users who register for an account on our website will receive access to an investor relations associate, who is available to answer any questions as they arise. A link to their email will be available when you are logged into the portal. Additionally, you are always welcome to contact Eikon directly by emailing invest@eikoninvestments.com.
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About You
Click INVEST in the top right corner of any page. If you don’t have one, create an account for detailed information about our investment opportunities and real estate assets. After registering, a member of our team will get in contact with you to move on to the next steps and answer additional questions. By registering you also will be able to view your investment performance, account statements, our private real estate newsletter, and have priority access to our investor relations team.
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To keep expenses low for all investors, we have an investment minimum of $10,000. We have no maximum investment amount, but we reserve the right to limit the investment to amounts reasonable to invest efficiently. We reserve the right to alter this on a per deal basis so check the offering documents before investing.
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To be considered an accredited investor by the SEC, individuals must accomplish one of the following:
- Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year
- Be a bank, insurance company, registered investment company, business development company, or small business investment company
- Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered
- Be a business in which all the equity owners are accredited investors
- Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million
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At any given time we may have investment offerings listed in our investment portal that non-accredited investors may participate in, although we reserve the right to change this on a per deal basis, so check all relevant offering documents for required investor status. Participation in any given offering by non-accredited investors may be limited in number, timeline, or by dollar amount, so if this is you, make your decision with your CPA and financial advisor, and then act swiftly once you are ready to invest.
Prior to investing, we strongly recommend that all of our investors, but non-accredited investors especially, verify their decision with family, financial advisors, and their attorney before investing.
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When you create an account on the Eikon Investments website, you will be asked to self-verify your accreditation status. However, after entering a deal you may be required to provide proof of your accreditation status.
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Foreign investors are currently NOT allowed in Eikon Investment Offerings. When considering American private placement investments, non-U.S. investors may have certain U.S. federal income tax obligations that differ from those of a U.S. investor and are urged to consult with their tax advisor and to review the tax considerations set forth in the offering documents.
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Investors can convert Roth or Traditional IRAs into self-directed IRA accounts. After converting, any IRA funds can be used to invest into a private real estate deals at Eikon Investments. for little to no tax expense. By doing this investors can avoid all or most of the tax due. However, verify this strategy will work for you with your financial and tax advisors
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We will accept investments from LLCs, LLPs, S-Corps, C-Corps, and trusts to buy a partial or total equity stake in any of our deals.
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Questions About our Investments & Projects
Eikon Investments uses creative strategy and active management to find value-add and opportunistic real estate projects that include the added stability of residential units. Primarily specializing in multifamily property, Eikon Investments will also move forward with student housing, residential, and mixed use real estate. Investors are entitled to shares of the annual cash flow and the sale proceeds when the project is divested. Through elite strategy and an entrepreneurial team, Eikon Investments helps investors build a diversified portfolio of rapidly appreciating properties to build sustainable long-term wealth.
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For every investment, we require that a deal have the potential to provide our investors with an 11.5% IRR or above over the lifetime of the investment. For approval by our investment committee, we expect each deal to demonstrate potential for consistent annual cash flow after the first year. Additionally, we require that a prospective deal exhibit strong projections for capital appreciation and cash flow growth. Finally, we will not invest unless the property is undervalued in comparison to the current real estate market for that property type and location. On redevelopment projects we require a project to forecast below replacement cost before receiving approval for investment.
If an investment meets all of our requirements, it will then undergo an extensive vetting process through additional market research, physical inspections, and rigorous financial underwriting. Since we set high standards for our investments, only about 4% of the prospective deals we examine will make it to our due diligence phase.
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Like all investments, no return is guaranteed. However, over time, if the real estate generates positive cash flow, Eikon Investment Group will dictate cash distributions or cash retention. The distributions will be sent out to each of the investors capital accounts annually or quarterly on a per-deal basis. Once the investment goal is achieved and we indicate a project divestiture, the equity and gains will be retrieved after a project exit is executed. Additionally, at this point any remaining capital will be distributed on a prorated basis.
After joining our investor portal and adding a bank account, you will have options to receive your returns via a mailed check or direct deposit via ACH transfers.
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At the end of each year, Eikon Investment Group provides you with the necessary tax documents via our investor portal so you can inform your tax professional. While we cannot provide legal or tax advice and recommend you speak with your own accountant and attorneys, you may experience some of the many tax benefits such as depreciation and expense write-offs passing on to you through the property’s Limited Liability Company (LLC)—lowering your tax bill.
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All of our deals have conservative projections and margins of safety in our operating budgets. As such our investments typically will not have a capital call—where the investor is required to commit an additional investment after their initial investment. We believe in promoting freedom in the lives of our clients and having our investors on the line for an additional investment several years down the line does not merge well with our values. Ideally, in a situation where additional capital is required, we will make every effort to avoid collecting another round of funding from investors and handle the situation internally. Nevertheless, in the event that more capital is needed from investors, we will first consider diluting limited partner capital to invest more of our own capital and place more risk on our money and not yours. However, this may differ on a per-deal basis, so be sure to check the operating agreement of a specific deal for official policy.
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Contrary to most investment platforms, our preference is to not assess annual/recurring administrative fees. We view the relationship with our investors as a true partnership. Therefore, we heavily depend on asset performance for our compensation since we invest our own capital into every single one of our deals. Essentially, the only way we can possibly make money is if you do also.
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All Eikon Investments will carry insurance to mitigate risks associated with natural disasters, thefts, and vandalism. Insurance quotes are received before buying a property and insurance expenses are covered by our operating budget’s margin of safety. Due to this, insurance protection of the investment will continue through poor-performing months.
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Joint ventures are when two parties enter into a partnership, mostly, when one has a special ability. When it is of financial benefit to our clients, we will join with great external operating partners who will bring unique skills to the table. Typical joint partnerships will include external construction companies or contractors or property management specialists. While our investors cannot enter the joint venture, JVs can help boost our investors returns significantly by adding a unique and additional ability to the project.
A real estate syndication consists of a group of people who combine their skills, resources, and capital to carry out a project. It is the simplest method of combining funds, where we employ an agreed-upon strategy, manage the asset operations, and investors passively receive income. Contrary to funds, a real estate syndication is used to complete a single deal, typically only one property and one strategy. Real estate syndicates are the most common of our offerings. Within a real estate syndication, limited partner investors will typically have more say-so.
An investment fund consists of a group who manages their investors capital and invests it into projects that will achieve their desired financial goals. This structure condenses power to a smaller group of people meaning this is the fastest way to grow wealth. In our investment fund deals, we emphasize a single key strategy and invest in a multitude of properties with similar features and returns. As the most repeatable structure, investment funds provide the greatest long-term opportunity for growing your wealth.
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You can expect to see real estate investment offerings from Eikon Investment Group located in Florida and the rest of the sun-belt region of the United States. At a micro-level, Eikon invests in up and coming communities that are expecting rapid growth of population and economic prowess. All investments have to be within 40 miles of the center hub of the intended metropolitan statistical area.
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Across our entire portfolio, we minimize risk through location diversification and buying assets below market/replacement. We have steep financial thresholds for a property to be approved by our investment committee, something only 4% of prospective deals will attempt. While our projections cannot be guaranteed, we take the following steps to minimize investment risk, verify purchase offers, and confirm our investors’ returns:
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- Conduct further market research and utilize analytics to confirm location growth projections.
- Travel through the local communities to conduct resident interviews.
- Analyze current financials to confirm building operations while finding key areas for improvement.
- Work with third parties for physical inspections, environmental reports, appraisals.
- Conservatively forecast performance. Budgets include cash reserves to cover downturns.
- Regularly monitor and audit the performance of any property managers.
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After investing and signing the subscription documents you will become an official Eikon Investments partner. Our deals are structured within an LLC so when you invest, you are buying shares of that LLC that owns the property, entitling you to a portion of the assets and cash flow of that LLC. By investing in the legal entity as opposed to directly owning the property, it provides you with an additional layer of liability protection, shielding your personal assets from the operations of the property.
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Since Eikon Investments are physical assets, liquidity of your investment is low. When investing in an Eikon project, we dictate the investment period or the hold period—the anticipated time investors will be invested in a project. At Eikon Investment Group, we have a checklist that we review before determining the proper holding period for any given property, for the good of our investors. Each investment period will be based on the individual project and be communicated to the investor before committing any capital to the project. Hold periods are on a per-deal basis, but the average hold periods for our investments can range anywhere from 1 to more than 5 years. Be sure to read the investors documents for a deeper understanding of business plan, investment thesis, and a deeper understanding of the hold period for each investment.
Throughout the hold period, investors will receive returns for their share of the profits and will receive a lump sum of their equity portion when a project exit like a sale or refinance is executed.
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Since Eikon Investments are physical assets, liquidity of your investment is low. When investing in an Eikon project, we dictate the investment period or the hold period—the anticipated time investors will be invested in a project.
When Eikon Investment Group was founded, one of our key reasons was to increase freedom among the population. Sometimes an extended hold period may contradict that principle. If an investor hoped to see a return of their capital, we would not be obligated to comply. However, Eikon would strongly consider special case negotiations such as equity dilution or us buying back your equity stake. Read the investment documents for a better understanding of the hold period and return policies of your individual deal.
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Due to the structure of our Eikon Investments, investors credit score will not be on the line. As the operating partner and managing member of our partnerships, we are responsible for liabilty management. Because of this, investors can experience the higher returns that will sometimes come with leverage without being overexposed.
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- Keep Money Invested. Being forced into a sale before the investment strategy is completed puts all investors at risk.
- Stay informed. Make sure to read posted property updates. Staying informed on property operations keeps all members on the same page.
- Remain flexible. As market conditions change, it may be beneficial to postpone or advance the divestiture period. period.
- Hire an accountant. Taxes will decrease your gains if you let them. Get a certified public accountant to minimize the damage.
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With Eikon Investment Group, LLC as the managing member of the investment property, investors have no day-to-day management responsibilities. The Eikon team will be responsible for overseeing the day-to-day management of the property so as the investor you can enjoy a stream of passive income. Decisions for the property are governed by the operating agreement contained with the subscription documents. Additionally, Eikon Investment Group will be responsible for deciding distributions and cash retention and dictate sale of the property. Please visit the About Us section to learn more about our team.
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