FAQ

Any questions, please email us at invest@oneupestate.com, you also can call or text us at 1-555-123-4567 or in Brazil +55 11 2468-1012.

One UP Estate is an online crowdfunding investment platform dedicated to real estate development projects. The basic idea is financing real estate projects to receive back a profit after the real estate is sold.

Crowdfunding is a way to raise funds for a specific project by asking many people to invest money, usually in small amounts, and usually just taking a few months to get the payback, our investment method is Equity crowdfunding.

Well – What is Equity crowdfunding?

Equity crowdfunding is a financing strategy involving the company investor’s ownership of projects in exchange for capital to return a profit defined in the contract.

We are subbmitted to the Rule 506(b) of Regulation D is considered a “safe harbor” under Section 4(a)(2). It provides objective standards that a company can rely on to meet the requirements of the Section 4(a)(2) exemption. Companies conducting an offering under Rule 506(b) can raise an unlimited amount of money and can sell securities to an unlimited number of accredited investors. An offering under Rule 506(b), however, is subject to the following requirements:

• no general solicitation or advertising to market the securities
• securities may not be sold to more than 35 non-accredited investors (all non-accredited investors, either alone or with a purchaser representative, must meet the legal standard of having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment)

If non-accredited investors are participating in the offering, the company conducting the offering:

• must give any non-accredited investors disclosure documents that generally contain the same type of information as provided in Regulation A offerings (the company is not required to provide specified disclosure documents to accredited investors, but, if it does provide information to accredited investors, it must also make this information available to the non-accredited investors as well)
• must give any non-accredited investors financial statement information specified in Rule 506 and
• should be available to answer questions from prospective purchasers who are non-accredited investors

Purchasers in a Rule 506(b) offering receive “restricted securities.” A company is required to file a notice with the Commission on Form D within 15 days after the first sale of securities in the offering. Although the Securities Act provides a federal preemption from state registration and qualification under Rule 506(b), the states still have authority to require notice filings and collect state fees.

Source: https://www.sec.gov/education/smallbusiness/exemptofferings/rule506b

You can begin creating an account and complete your profile, read and agree with “terms and conditions” and “policy and privacy”, and also complete the process as an accredited investor.

Among the different types of investments, you can consider investing as an Individual, Jointly, through an LLC (Limited Liability Company), Corporation, Partnership, or Trust.

An accredited investor can be defined as a natural person, including anyone who:

• Has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, OR
• Has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
• Holds good standing a Series 7, 65, or 82 license.

During the form fill-out, our team will validate if the person satisfies the thresholds for the prior two years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person gets married within this period. In this condition, the person may satisfy the threshold based on individual income and for the other years on joint income for the years during which the person was married and based.

Corporations, nonprofits, and trusts may be accredited investors depending on some circumstances, the following items may be important to your validation:

• Any entity in which all the equity owners are accredited investors, OR
• Certain entities with total investments of more than $5 million, not formed to specifically purchase the subject securities, OR
• Any trust with total assets of more than $5 million, not formed to specifically purchase the subject securities, and whose purchase is directed by ** a sophisticated person.

** A sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

Our investments were designed to attend anyone around the world, however, due to local laws some documents may be required. Basically, the accredited method can be attended by any type of investor, and the non-accredited method has a limited number of investors in the project.

Each project, after being completed, reserves 5% of the sale to One UP Estate to support the platform, however, without decreasing the investor returns agreed on when bought the project share.

The documentation is based in the type of investor you were defined, accredited or non-accredited.

The investors applying for accredited funds the form is: Form K-1. For investor applying to non-accredited founds the form is: Form 1099-DIV.

Each form has different deadlines to be send, however, it will be available on your platform account.

Yes! We understand that all investments contain a risk of partial or total loss of your investment. These risks are found in any kind of investment. We cannot guarantee that you will earn our targeted returns. The reason is so many factors are involved that can impact the performance of your investment, many of which are not under our control.

At the same time, we also believe that the real estate market exposes the investor to less risk than many other options of investments. Real estate gives its market historical growth year by year even in crisis periods with less volatility than the stock market.

We encourage our investors to consider investment objectives, risks, charges, and expenses and should consult with a tax or legal adviser before making any investment decision.

Basically, our projects should take 12 months of work at the maximum, once the project is completed you will receive in your e-wallet part of our platform your investment amount and the payback according to the contract.

We target at least 8% of equity returns on an annualized project investment agreement.

We also can forecast target-to-equity returns that are higher or lower depending on some conditions.

For higher returns, it’s possible to pay a bonus percentage in case of a project sale that hit 10% or more of the project sale, all details also will be described in the agreement.

For lower returns, One UP Estate can be forced to refuse to pay the agreement returns, for example, if we invest in a property that during the project period faced a heavy storm and requires a significant time to recover the building, and when completed the project the repositioning through the market, can create a loss of capital, we may forego the One UP Estate part of distributions to achieve a higher gain on the sale of the property to cover the agreement with investors. In a similar case, we can use the possibility to charge a fee of 0,5% ~ 1% to keep the company’s operations. This option is a risk-return for these types of investments.

Ultimately, all returns are based on targets that cannot be achieved. The most important is all investment involves risk and our actual returns may be higher or lower and may include a partial or total loss of your investment.

All our terms are usually defined in 1 year. Still, in some cases, the project can be extended for 6 months more if some inconvenience occurs during the project execution, for example, significant rain periods or inspection blocks that can be taken more time than expected, however, in most cases the project can be finished in less time due to the project management and all building process being performed successfully.

We always work to complete the project in less time than we agreed because we want to maximize the value of the real estate investments to give more opportunities to our investors to be prepared for the following projects.

At the same time, we wouldn’t like to be forced to sell any project when the market is not favorable, trying to focus on the best opportunities for investments during the period the market is better.

The One UP Estate is a short-term investor, and we understand that less time is the way to divert the chance of loss inflation trying to rise on the market.