Real Estate Investing Questions & Answers

No, Hezekiah has never lost money on an investment.

ROI is independent of time frames and measures the total return on investment for a project. Annualized return, on the other hand, calculates ROI over a 12-month period. Annual return is valuable for comparing investments as it provides insight into their performance over a standardized one-year period.

After making your investment(s), you will receive instructions for completing an online wire transfer or ACH. You must complete the transfer within 5 business days to activate your investment. For wire transfers, there is a unique reference code highlighted in red; it is crucial to include this code when sending your funds. Please be aware that if you have a daily wire transfer limit, you can conduct multiple transfers on different days until you reach your total investment amount. Ensure that you use the same reference code in all transfers in such cases.

Your investment begins on the day you make the initial placement. For instance, if you placed an investment on January 26th but completed the wire transfer five days later, the investment's start date remains January 26th. However, the status will not switch to "Active" until we receive the investment funds via wire transfer or ACH. Investors will receive a confirmation email once the funds are received and the investment is active.

Hezekiah ensures that funding never delays a project. They provide upfront funds to allow deals to proceed on schedule. Investments remain open on the website, enabling additional investors to join as the project advances. As new investors participate, their funds replace Hezekiah's initial investment. Therefore, investment returns are prorated according to the time each investor joins the deal.

Each project's "Deal Level Financials" includes: A starting date (when escrow on the property opens), An ending date (the estimated completion and sale date of the project), A total projected timeframe (the estimated duration from start to finish). The "ROI Calculator" for each project displays: - The remaining estimated timeframe (how much time is left until the project's completion). Your ROI is prorated based on the period during which you are invested in the deal. For instance, if a project has a total timeframe of 18 months according to the "Deal Level Financials" and there are 16 months remaining in the "ROI Calculator" when you invest, your profit share will reflect the 16 months you were an investor. Hezekiah's proprietary software automatically tracks and calculates the estimated ROI based on the current day you view the investment. It's important to note that while the actual ROI varies based on your investment period, the annualized return remains consistent for all investors in a project.

To compute your ROI (Return on Investment) for a property, follow these steps: Subtract the total investment amount from the net profit generated by the property. Divide the resulting net profit by the total investment amount. Multiply the quotient by 100 to express your ROI as a percentage. This formula helps determine the profitability of your investment relative to the initial amount invested.

On the Hezekiah platform, investors are unable to designate "beneficiaries" for legal reasons. In the event of unforeseen circumstances, such as incapacity or death, your share in the property would transfer to the individual specified in your legally binding document, such as a will or trust. However, you can designate an emergency contact within the platform. This option becomes accessible in your profile after you have made an investment. Hezekiah will contact this designated emergency contact to facilitate disbursements from your account if necessary.

You have to receive the proceeds from your previous investment before you can reinvest them into a new project. We cannot automatically transfer funds from one project to another on your behalf. Once a project is completed, the funds will be disbursed back to your bank account automatically. After receiving these funds, you can decide to reinvest them in a new property if you choose to do so.

The real estate opportunities listed on our platform are not eligible for use in 1031 exchange transactions.

We maintain two distinct insurance policies for our construction and new development projects: Premises liability insurance: This policy covers injuries sustained by individuals on the property. Builder's risk insurance: This policy protects the property itself during the construction phase against damages or destruction caused by events such as fire, vandalism, or other unforeseen occurrences. In the event of damage, the insurance covers the full "Replacement cost" of the property.

If a project were to unexpectedly fall out of purchase escrow, Hezekiah would provide investors in the deal with the option to either participate in a similar project or receive a refund of their funds.

Our construction timeframes are meticulously planned based on project schedules, which include factors like material availability, supplies, and workforce availability. Despite our careful planning, unforeseen delays can occasionally extend the construction period. In such situations, Hezekiah collaborates closely with the construction team to mitigate delays and strive to complete the project as closely as possible to the originally estimated completion date. If the property still sells for the projected amount upon completion, investors' ROI (Return on Investment) remains unaffected by construction delays. However, the annualized return may be impacted. This is why Hezekiah tracks both annualized returns and straight ROI, providing investors with comprehensive insights into project performance.

If a project requires additional funds to complete development, Hezekiah will extend a 0% interest loan to the ownership LLC. This loan is intended to support the completion of the project and will be repaid once the property is sold.

Hezekiah conducts thorough market analyses to predict sale dates and prices for completed properties. However, due to fluctuating market conditions, properties may take longer to sell or sell for more or less than initially anticipated. If a property takes longer than expected to sell, Hezekiah continues to market the property and updates investors on its progress. Assuming the property ultimately sells for the projected amount, investors' total ROI remains unaffected. In the event of significant market changes that make selling the property impractical, Hezekiah will seek qualified renters for the property. This generates passive rental income for investors and offers tax benefits through depreciation deductions on rental properties. This approach continues until market conditions stabilize and the property can be sold successfully. It's important to note that Hezekiah has always successfully sold properties as planned. Nevertheless, we are prepared to take necessary actions to ensure the success of every deal, adapting to any shifts in the market landscape.

If a property sells for more than initially expected, the additional profits are distributed among the investors participating in the project. Conversely, if a property sells for less than anticipated, the ROI for investors is adjusted accordingly to reflect the lower sales price. This ensures that investors' returns accurately reflect the actual outcome of the property sale.

Hezekiah strategically acquires and develops properties in high-demand areas, minimizing the likelihood of extended vacancies. In the event a tenant gives notice to vacate, we typically secure a new tenant within 30 days of the unit becoming vacant. During this period, investors may receive a partial disbursement from rental income until the unit is fully occupied again.

Our "Coming Soon" investments provide an early preview of upcoming deals that will soon be available for investment. You can review property descriptions and estimated financials for these projects before they are officially open for investment. Notifications will be sent to alert you when these opportunities become available for investment.

Open investments are currently accepting funding. You can access detailed property information, financial breakdowns, and comprehensive descriptions outlining our plans for each property. To participate and secure an ownership stake in the project, simply wire your investment today.

An ADU (Accessory Dwelling Unit) is an additional housing unit constructed on existing single-family properties. ADUs can either be standalone structures adjacent to the main house or integrated into the property, such as by converting an unfinished basement, attic, or garage loft into an apartment. To optimize property value and enhance investor returns, Hezekiah frequently constructs new ADUs adjacent to the primary structure for our House Flipping projects.

In most instances, we rely on the bank's appraisal to establish property values. When the bank does not conduct the appraisal, we engage certified appraisers who are members of the Appraisers Association of America (AAA). AAA-certified members possess a minimum of 10 years of experience as licensed real estate appraisers. Their extensive experience, education, and expertise distinguish them, ensuring accurate valuation of our developments, renovations, and rental properties.

It's important to clarify that past performance does not guarantee future results. While Hezekiah may have had a 100% success rate in profitable deals and an average annualized net return of 23.0% since its creation in 2024, investing always carries inherent risks. Investors should conduct thorough due diligence, consider their risk tolerance, and understand that returns can vary based on market conditions and individual investments.

All properties owned by Hezekiah are situated in Southwest Florida.

Hezekiah currently is operating through an online platform and will have a physical address soon. However, we are always happy to meet with investors. To schedule a meeting, please email info@hezekiah.co.

Hezekiah operates under SEC Rule 506(c) registration and adheres to all corresponding rules and regulations. Each property LLC is filed with the SEC. To locate a specific property, click here, search for "HR property X LLC," and provide the property number (e.g., "HR Property 23 LLC").

Hezekiah offers distinct advantages over other real estate investment platforms: Diverse Offerings: We provide a range of investment opportunities from short to long-term, spanning from 6 months to over 5 years. This flexibility allows investors to customize their real estate portfolios according to their individual financial objectives. Ownership Stake: Unlike many real estate crowdfunding platforms that offer debt-equity, Hezekiah's LLC structure allows investors to own a direct stake in the underlying real estate asset. Experienced Team: Our management team brings extensive industry expertise and a unique approach to real estate investment. Industry-Leading Customer Service: We prioritize transparency, attentive customer service, and regular asset management updates throughout the investment lifecycle. Deal-by-Deal Control: Investors have the flexibility to choose specific properties they wish to invest in, offering granular control over their investment decisions. 100% Profitable Track Record: Since our inception in 2024, Hezekiah has maintained a flawless track record without any losses on properties. For independent verification, we encourage you to explore expert reviews and rankings comparing Hezekiah to other real estate platforms.

Hezekiah charges management fees that encompass all stages of the real estate process. The percentage of these fees may vary depending on the property type and the specific LLC involved. Our comprehensive services include: Location scouting Formation and management of LLCs Property acquisition and sale Securing financing Escrow management Permit applications Oversight of construction teams Interior and architectural design coordination Property stabilization Management of rental properties through overseeing management companies Accounting services Investor distributions These fees cover the extensive range of tasks involved in maximizing the value and management of our real estate investments.

In the event of a market crash, the impact on our rental properties would be minimal due to our long-term investment strategy. While a downturn in the housing market may delay our ability to increase rents or refinance loans, we would continue to collect rental income as usual during the downturn, with plans to benefit from market recovery. For properties initially intended for renovation or sale, we have the flexibility to pivot and hold these assets as rentals if market conditions are unfavorable for selling. This strategy allows us to generate rental income until market conditions improve, enabling us to maximize returns over the long term.

To invest with Hezekiah, you must meet the following criteria: Age Requirement: You need to be 18 years or older. Accredited Investor Verification: You must be verified as an accredited investor. There are five ways to qualify as an accredited investor: Income Qualifications: Individuals who have earned $200,000 or more in gross income each year for the past two years and expect to continue to do so. Individuals whose combined gross income with their spouse totals $300,000 or more each year for the past two years and expect to continue to do so. Net Worth Qualification: Individuals who maintain a net worth of $1 million or more, excluding the value of their primary residence. Entity Qualification: An entity with at least $5 million in assets. A business where all equity owners are accredited investors. Professional Qualifications: Individuals holding General Securities Representative (Series 7), Private Securities Offerings Representative (Series 82), or Licensed Investment Adviser Representative (Series 65) registration in good standing. These criteria ensure that investors meet the necessary financial qualifications to participate in investment opportunities offered by Hezekiah.

International investors are indeed welcome at Hezekiah. However, the process and requirements for investing as a non-US citizen may vary. Typically, non-US citizens interested in investing in US-based opportunities need to adhere to certain regulations and procedures, which may include providing additional documentation for verification purposes. To learn more about the specific process for international investors and to get detailed information on investing as a non-US citizen with Hezekiah, you can visit their official website or contact their customer support directly. They can provide guidance tailored to your specific circumstances and ensure compliance with applicable regulations.

Fund companies interested in investing with Hezekiah typically engage in discussions and negotiations directly with Hezekiah. This process involves reviewing the investment opportunities available, understanding the terms and conditions, and potentially customizing investment strategies to align with the goals of the fund company. If you are representing a fund company and wish to explore investment opportunities with Hezekiah, I recommend visiting Hezekiah's official website or contacting their investment relations team directly. They can provide you with detailed information, discuss available opportunities, and guide you through the investment process tailored to fund companies.

Hezekiah offers a fund of funds investing option, which allows funds to invest in a diversified portfolio of investment opportunities managed by Hezekiah. This approach enables fund managers to access a range of real estate and other investment projects through a single investment vehicle. For detailed information about investing as a fund and exploring the fund of funds option with Hezekiah, I recommend visiting their official website or contacting their investment relations team directly. They can provide comprehensive details about the investment strategy, opportunities available, and the process for funds to participate in Hezekiah's investment offerings.

Yes, Hezekiah accepts the following types of retirement accounts for investment: IRA LLC (Single-member) IRA LLC (Multi-member) Self-Directed Solo 401(k) These retirement account types allow investors to use their retirement funds to participate in Hezekiah's investment opportunities while maintaining the tax-advantaged status of their retirement savings. If you have any specific questions about investing with these retirement accounts at Hezekiah, it's advisable to contact their customer support or investment relations team for detailed guidance.

As of now, the SEC recognizes Series 7, Series 82, and Series 65 licenses as qualifications for accredited investor status. Holding a Series 79 license alone does not automatically confer accredited investor status. However, individuals holding a Series 79 license who meet the SEC's accredited investor criteria based on income or net worth can invest with Hezekiah. It's important to note that if the SEC expands the list of approved licenses to include Series 79 in the future, holders of this license in good standing may qualify as accredited investors at that time. For the most current and specific guidelines regarding accredited investor qualifications and the recognition of professional licenses, it's recommended to refer to SEC regulations or consult with a qualified financial advisor.

SEC regulations mandate that investors must be accredited to participate in certain investment types, including Hezekiah’s real estate syndication opportunities. The SEC regulates most financial securities traded among the public, providing protection for investors who may lack experience or knowledge. However, sophisticated investors seek access to innovative investment opportunities beyond the SEC's direct oversight. To bridge this gap, the SEC established accredited investor status, allowing qualified individuals to access these types of investments. Verification as an accredited investor signifies that you are deemed financially knowledgeable and capable of making informed investment decisions with your capital.

Hezekiah offers a straightforward process for verifying accredited investor status through Verify Investor, a confidential third-party service. Here’s how you can prepare and complete the accredited investor application: For Individuals and Retirement Accounts: Before starting the application, gather at least one of the following documents for the past 2 years: Proof of income (W-2, Schedule K-1, or 1099) for yourself. Proof of combined income with your spouse (W-2, Schedule K-1, or 1099). Documentation of assets demonstrating a net worth of at least $1,000,000 (excluding your primary residence). This could include property deeds, bank statements, or a professional valuation of assets. Alternatively, provide: A verification letter signed by a CPA or licensed attorney within the last 90 days. For Entities and Trusts: Each equity owner must provide: Proof of income (W-2, Schedule K-1, or 1099) for the past 2 years individually or combined with their spouse. Documentation of assets demonstrating a net worth of at least $1,000,000 (excluding their primary residence). This could include property deeds, bank statements, or a professional valuation of assets. Alternatively, provide: A verification letter signed by a CPA or licensed attorney within the last 90 days. If the entity or trust has assets exceeding $5,000,000, provide: Proof such as a formal valuation from a valuation professional or accountant. For License Holders: If you hold a Series 7 or Series 82 license, ensure: Confirmation that you are currently employed by a FINRA-member or SRO firm, or within 2 years since leaving such employment without subsequent employment with a FINRA-member firm. For Series 65 holders, registration with a State in good standing suffices. For Series 7 and 82, enter: Your name as it appears on your license. Your individual CRD#. The name of the firm through which you are licensed (Series 7 and 82 only). Once you have gathered the required documentation or information, proceed with the online accredited investor application through your Hezekiah account. This process ensures compliance with SEC regulations and allows you to access Hezekiah’s investment opportunities tailored for accredited investors.

An accredited investor verification through Hezekiah remains valid for up to 90 days. It's crucial to complete your first investment and initiate the wire transfer within this period to avoid the need for re-verification. Once you've successfully made your first investment within the 90-day window, your accredited investor status with Hezekiah is validated permanently. This ensures ongoing access to their investment opportunities without the need to undergo the verification process again.

In order to invest any amount in any Hezekiah project, it is necessary to be verified as an accredited investor. This verification ensures compliance with regulatory requirements and allows qualified individuals to participate in Hezekiah opportunities. If you have any further questions or need assistance with the verification process, feel free to ask!

Upon making their initial investment, each investor must complete an IRS Form W-9. At the conclusion of each relevant tax year, investors will receive a Schedule K-1 detailing their portion of taxable income or loss from each completed property. It is the responsibility of investors to report this income or loss on their individual tax returns.

Income and gains from investments in Class A Units are subject to specific tax treatments: Ordinary Income / Short-Term Capital Gains: Profits from the sale of a property or Class A Units held for less than 12 months are generally taxed as short-term capital gains. Any rental income generated by the property is taxed as ordinary income. Long Term Capital Gains Profits from the sale of a property or Class A Units held for more than 12 months are generally taxed as long-term capital gains. Please note: Prospective investors should consult with their own tax advisors to understand the federal, state, local, foreign, and other tax implications of purchasing and holding Class A Units. For a comprehensive discussion on tax considerations, please refer to the section titled "Certain U.S. Federal Income Tax Considerations" in the Summary of Terms. It's essential for investors to seek personalized tax advice to fully comprehend their tax obligations related to investments in Class A Units.

You can easily download your Schedule K-1 form directly from your Hezekiah account. Here's how: Sign in to your Hezekiah account. Go to the "Account" tab. Click on "My Profile." Scroll down to the Schedule K-1 field. Click on the "Download" button to retrieve your Schedule K-1 form. This process allows you to access and obtain your Schedule K-1 for tax reporting purposes conveniently through your account on Hezekiah's platform.

We strive to provide US taxpayers with annual K-1 statements in a timely manner before April 15th each year. Investors can access all current and historical statements by navigating to the “Account” tab and selecting “Tax Forms (Schedule K-1).” This section allows easy retrieval of both current and past Schedule K-1 forms for tax reporting purposes.

Yes, all investors who have had any activity within a given tax year will need to file a Schedule K-1. It's important to note that the K-1 will not reflect the sale of the property and its profits until the sale has been finalized and closed.

Yes, according to tax laws, investors are required to file a tax return and report their state-sourced income to the relevant state taxing authority. This applies to income generated from economic activities, such as real estate investments, conducted within that state. For instance, if you reside in Texas but invest in a Hezekiah project located in Florida, you would need to file a Florida state tax return. On this return, you would report the income shown on your Florida Schedule K-1 tax form from your investment in the Florida property. This ensures compliance with state tax regulations regarding income sourced from activities conducted within specific states.

The LLC will offer Class A Units to potential investors through a Subscription Agreement. The management and financial aspects of the LLC will be governed by an Amended and Restated Operating Agreement, to which each investor must agree upon investing in the LLC. Hezekiah serves as the managing member and holds ownership of Class B Units in the LLC, which grants it all voting rights. Investors hold Class A Units and are members and owners of the LLC. As a holder of Class A Units, investors have an indirect economic stake in the single real property asset owned by the LLC. The number of Class A Units allocated to each investor corresponds to their investment amount and the equity value of the underlying property at the time of investment.

Once your investment funds have been wired and your investment becomes active, you will have access to view and download a property certificate. This certificate will contain your full name, the property address, your investment amount, and your allocated share in the property. It serves as confirmation of your ownership stake in the real estate held by the LLC. To locate the certificate, navigate to the "Account" tab and select "My Investments." Click on the specific investment for which you would like to access the property certificate.

Yes, for rental properties, 100% of the property's depreciation expense will pass through to investors according to their individual ownership percentages. This means investors will receive tax benefits from depreciation that correspond to their share of ownership in the property.

Built-to-sell Projects: In our flips and developments, forced appreciation occurs through added construction value, driving up the property's sale price. Organic appreciation may also occur due to market conditions. Investors benefit from both forms of appreciation when the property sells for more than the total investment amount. Rental Properties: Investors in our long-term rental properties can also realize appreciation benefits. If you hold your investment until Hezekiah decides to sell the project, you will receive your portion of any profits from the sale. Additionally, there's a possibility that Hezekiah could pursue a cash-out refinance during the holding period. This could enable investors to recover their initial investment and potentially earn additional profits, independent of rental income, while still retaining ownership of the property.

As with any investment, we cannot guarantee a profit. However, you can review our track record to see consistently profitable results. Please note: Past performance does not guarantee future results.

Each property is held within a stable LLC ownership structure. This structure is specifically designed to segregate the assets and liabilities related to the property from the personal assets of investors.

Upon dissolution of the property holding LLC, the assets of the LLC, including the property itself, will be liquidated. The proceeds will be used to settle outstanding debts owed by the LLC to its creditors. After creditors have been paid, any remaining funds or assets will be distributed to the members of the LLC according to the terms outlined in the operating agreement of the property holding LLC. This process ensures that creditors are prioritized in settlement before members receive their distributions.

If Hezekiah LLC were to declare bankruptcy, the operating agreement of the property holding LLC stipulates that Hezekiah LLC might continue to be bound by its obligations as the managing member (and holder of Class B Units). Alternatively, a successor managing member could be appointed. However, a bankruptcy proceeding involving Hezekiah LLC could potentially lead to delays or reductions in distributions from the property holding LLC to Class A Unit Holders. It could also result in insufficient funding for the property holding LLC or even the liquidation of both Hezekiah LLC and the property holding LLC. Moreover, under the U.S. Bankruptcy Code, the rights and obligations of Hezekiah LLC (and the Class A Unit holders of the property holding LLC) may be adversely affected. For instance, a court-appointed trustee or representative could assume control over Hezekiah LLC's authority to manage and oversee the property holding LLC. For more detailed information regarding the risks associated with Hezekiah LLC ceasing to act as the managing member of the property holding LLC, please refer to the "Risk Factors" section titled "The Issuer has limited or no operating history and no employees of its own" in the Summary of Terms.

Hezekiah engages a third-party accounting firm to conduct an "Agreed Upon Procedure Report" for completed properties. This report includes verification of the purchase date, purchase price, property address, escrow statements, costs and expenses incurred, sales date, sales price, and return on investment. These reports are conducted regularly and can be accessed by all verified accredited investors upon request. They provide transparent and detailed insights into the financial performance and outcomes of Hezekiah's completed property investments.

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