Q: When was OwnerClub established?
A: Established in 2015 by Ran Strauss, the founder and CEO. Ran has 15 years of experience in real estate and finance. He is responsible for setting and overseeing the strategic and long-term goals of the company while establishing an online marketplace for real estate thus transforming the real estate investment landscape.
Before founding OwnerClub, Ran was Co-Founder and former CEO of Leverate, which is a successful and internationally based financial marketing platform for foreign exchange.
As CEO of OwnerClub, Ran's mission is to make the traditionally inaccessible real estate market accessible to the average investor.
Q: How much money has been raised and invested through OwnerClub?
A: Over $7 million has so far been invested via OwnerClub.
Q: How do you make money?
A: On every investment traded via our platform, OwnerClub receives a 2% commission. In addition our company profits as the value of our real estate holdings rise.
Q: Who are the types of investors?
A: Investors can include high net worth individuals, institutional investors, private equity firms, hedge funds, banks, asset managers, and non-accredited individual investors.
Q: What are the benefits of using OwnerClub?
A: We provide access to Real Estate investments which were historically limited to high net worth investors making the traditionally inaccessible and yet highly profitable real estate market easily accessible to the average investor. We spend countless hours sourcing and vetting real estate investments with high profit potential and allow you an affordable opportunity to invest in real estate with as little as $1,000. We make the process frictionless – allowing you to screen investments online, view and sign legal documents, and have access to all your documents in one place on your investor dashboard.
Q: How is investing via OwnerClub different from a REIT?
A: OwnerClub offers more flexibility and transparency than is available when you invest in a REIT. You have the ability to self-select investments from our pre-vetted opportunities and build specific portfolios.
Q: What type of real estate investments?
A: We focus on equity investments with existing cash-flow, like apartment buildings, single family homes and Duplex units. Investors pool their money to purchase a unit share of a specific property, a tailor made property or a portfolio of properties.
Q: Who manages the assets?
A: All assets are managed by a USA licensed property management company with vast knowledge and experience in managing real estate properties. OwnerClub has agreements with these management companies so the clients works directly with OwnerClub as a one-stop-shop.
Q: What happens if a property is damaged?
A: Before purchasing a property OwnerClub orders an Inspection report and we check the asset from A-Z. When needed, we renovate the property before publishing it on the website. Both the Inspection and Renovation reports are included for each asset. We also put aside 5% of the gross rent for maintenance and if not needed, this is returned to the client as part of the monthly income. We also use a better-than-the-average insurance policy for extra safety.
Q: What happen if there is no tenant? / How can I be sure that we maximize the yield?
A: The Management Company and you share the same interest. They make profit from the rent. It’s in their interest that rent will be as high as bearable, that tenants will be found as fast as possible and to make sure they keep out problematic tenants. More than that, as for the possibility of having a problematic tenant, OwnerClub (using its local Property manager) has initiated a screening process that contains amongst other things:
Prospective tenants must fill out a rental application. This application contains a lot of background relevant information, and of course proof of funds and ability to pay the rent.
OwnerClub hire a credit reporting company to do a criminal background and credit check on prospective tenants.
Check references are supplied by the prospective tenant.
A “Security Deposit” is collected to cover agreement breaches and early termination by the tenant.
Q: What about maintenance risks?
A: As for the maintenance risks, and as mentioned above, before purchasing any property OwnerClub orders an “Inspection Report” (can be found under “Reports” for each property). This report indicates all maintenance problems and OwnerClub renovates the property accordingly. If significant problems appears, the deal can be terminated or the purchase price can be re-negotiated.
Finally, each and every property is insured by an insurance company in order to cover a total loss or any major maintenance problems.
Q: How does an investment opportunity get listed on OwnerClub?
A: We spend countless hours sourcing real estate investments so you don’t have to. We purchase the assets with the most attractive earning potential and list them on the platform.
Q: Are the investments secure?
A: Although no investment is guaranteed, you are investing in physical assets around the United States. Your investment is in an actual property as opposed to a stock or bond or other non-physical asset.
Q: Are the investments risky?
A: Yes. Similar to investing in the stock market, there is no guarantee when you are investing in real estate. The real estate market has cycles affected by all sorts of economic fundamentals such as interest rates, unemployment, inflation etc.
Q: Does OwnerClub do background or credit checks on new investors?
A: Yes. We require KYC (know your customer) and anti-money laundering vetting on all who invest on our site.
Q: Is there an investment minimum?
A: Yes. The minimum investment can be as low as $1,000 per unit.
Q: Are there fees for investing?
A: There is a one-time 2% transaction service fee. No annual fees are charged. Withdrawal of funds are subject to a $35 money transfer fee.
Q: Where is your company registered?
A: "OWNERCLUB" is the registered Trademark of OWNERCLUB Holdings L.P. (Reg. Number 53313), with its head office located at Continental Building 25 Church Street Hamilton, HM 12 Bermuda
Q: Why Bermuda?
A: OwnerClub wanted to find the best combination between proper regulation and maximum yield & return. Naturally, Bermuda became ideal for these conditions since the client doesn't need to pay more taxes in the U.S
Q: How are the Investments structured?
A: OwnerClub GP LTD is the General Partner of OwnerClub Holdings L.P. and OwnerClub Financial L.P. OwnerClub GP provides tech services to the OwnerClub platform. OwnerClub Holdings L.P. is held by the investors as limited partners together with OwnerClub GP as a General Partner. This entity holds the U.S. LLC’s who in turn hold each of the properties and receives the dividend income on a monthly basis based on actual results in the U.S. OwnerClub Financial L.P. is held by OwnerClub GP as a General Partner and by the investors as limited partners together. This entity provides loans to each LLC and receives interest income on a monthly basis.
This complex structure has been carefully planned to lower taxation requirements to an extreme minimum for the benefit of the investors.
Q: Are my investments audited?
A: OwnerClub's legal structure allow you (the client) to purchase assets in the U.S and to receive back net rent without the obligation to report it in the U.S (Property managers need to report annual rents collected on behalf of foreign landlords). As a result of this structure, net rent goes back as dividend and is not required to be reported in the US.
In the U.S you would have to pay taxes only on profit you made from assets appreciation (because of our unique structure). That might happen in two different situations:
You sold your shares to another client with a profit via our platform (for example: a share bought for $1500 and sold for $2000).
OwnerClub sold the property after 5 years on the open market. As a result you made profit.
In both cases we will deduct 20% on capital gains according to the U.S law.
Q: What about my local taxes?
A: Since we are not acting as tax advisors and since we are working with many different countries, we cannot advise clients about local taxation laws. The client should consult with a local tax advisor for local tax laws.
Q: How does the investment process work?
A: An investment is not final until all legal documents are signed and funding has been contributed and cleared. The money is transferred for the sole purpose of the specific property that is being invested in.
Q: How do investors transfer funds?
A: Wire transfer to one of our bank accounts or via Credit Card
Q: How are my funds secured? Where are my funds held?
A: When you transfer funds, you are effectively purchasing real estate which is legally written in your name.
Q: How are legal documents handled?
A: All legal documents can be seen on the OwnerClub website showing ownership of the properties listed. Websites such as Zillow.com & Redfin.com offer services that allow one to see who the owner of each asset is.
Q: Does OwnerClub have a real estate agent registration number?
A: We don’t need any real estate registration number or real estate broker license, as we are not acting as brokers.
Q: How are investors updated regarding their investment status?
A: Investors are able to view real time updates of their investments and overall return on investment and income received when they log into the website and view their investor dashboard.
Q: How will my investment cash flow allocations be distributed?
A: Payment are made directly into your OwnerClub client account on the 10th of each month (or the next business day if the 10th of the month falls on the weekend or a holiday) for any rental amount accrued on the previous month.
Q: Is my investment liquid?
Q: How and when can I exit my investment?
A: You are free to sell your unit shares at any time. Additionally, every 5 years we will sell the properties on the free market and divide the net income between all investors (subject to terms and conditions).
Q: Am I able to withdraw income received in my account?
A: Yes. At any point in time, you can request a withdrawal of available funds which will be immediately processed. Please refer to our refund policy
Q: How big is the chance to find a buyer if a shareholder wants to sell?
A: This depends on the selling price which is set by the buyer. If your price is attractive and becomes placed at the top of the list, you will easily sell.