CLOSED
GET A PIECE OF STARTENGINE REAL ESTATE REIT
Expand the Possibilities of Your StartEngine Portfolio
Show more
Offering Circular | Risks Related to This Offering | SEC Edgar Filings | Signed to Trade Disclosure
Key Reasons to Invest
-
Investors receive 6% preferred returns annually on their investment. When dividends are distributed, investors will receive their preferred return. After that 6% is distributed to investors, investors and fund managers will evenly split any additional funds generated by StartEngine Real Estate.
-
If StartEngine Real Estate generates income and there are available funds, you will receive ongoing monthly dividends directly to your StartEngine account.
-
To bring this real estate offering to life, we have partnered with Michael Chesser to manage the assets of StartEngine Real Estate. Michael Chesser is a real estate veteran with over 26 years of experience and a reputation for increasing property values through a well-defined, repeatable investment process.
- StartEngine Real Estate is signed to trade on StartEngine’s secondary market, and investors may have the chance to access potential liquidity and trade their shares with other investors after this offering closes.
WHILE THE COMPANY HAS SIGNED A QUOTATION AGREEMENT TO TRADE THE SECURITIES OFFERED ON STARTENGINE SECONDARY’S NEW ALTERNATIVE TRADING SYSTEM (THE “ATS”), A COMPANY WHICH INTENDS TO BE QUOTED ON THE MARKETPLACE WILL BE SUBJECT TO CERTAIN REQUIREMENTS WHICH THE COMPANY MAY OR MAY NOT BE ABLE TO SATISFY IN A TIMELY MANNER. EVEN IF A COMPANY IS QUALIFIED TO QUOTE ITS SECURITIES ON THE MARKET, THERE IS NO GUARANTEE AN ACTIVE TRADING MARKET FOR THE SECURITIES WILL EVER DEVELOP, OR, IF DEVELOPED, BE MAINTAINED. YOU SHOULD ASSUME THAT YOU MAY NOT BE ABLE TO LIQUIDATE YOUR INVESTMENT FOR SOME TIME OR BE ABLE TO PLEDGE THESE SHARES AS COLLATERAL.
Why real Estate?
Diversify Your Investments
Real estate is an asset that diversifies your portfolio and can help reduce volatility, yield ongoing income, and mitigate risk.
But historically only wealthy people had access to real estate. With StartEngine Real Estate, you don’t need to spend a $100K minimum (or more) in order to access commercial and multi-family real estate. Through StatEngine Real Estate, you can invest and own part of commercial and multi-family properties for as little as $500.
How it works
Acquire, Improve, Realize
A REIT is a real estate investment trust that pools the capital of many investors. Investors like you can buy shares of a REIT and, through it, share ownership of the real estate properties acquired by the trust.
In addition to monthly dividends, several years later, the property may be sold to another buyer, and a percentage of those returns may go back to the investor too. And all of those dividends get paid to you directly through your StartEngine account.
The market
Real Estate Is at a Record High
In the wake of COVID-19, demand for real estate has never been higher. Home prices are at a record high. The percent of homes that are selling above asking price are at a record high. Inventory and the time of that inventory on the market are both at record lows.
Investment in multi-family real estate is expected to grow 33% in 2021 to help meet that demand for housing. Commercial real estate, while still negatively impacted by COVID-19, is recovering.
Real estate sectors are recovering at different speeds, and that creates opportunity we hope to take advantage of. With Michael Chesser’s expertise, StartEngine Real Estate aims to target industrial buildings that support ecommerce growth, larger apartments that supply quality of life while working from home, retail projects that provide services people can’t access online (i.e. restaurants, gyms, hair & nail salons, etc), and more.
Our leadership
Meet Our Asset Manager, Michael Chesser
Our real estate team has roughly 60 years of combined experience in investing, operations, property management, accounting, and investor relations. Our strength as a team is founded on the vision of Funds Manager, Michael Chesser.
With 26 years investing in real estate with both his own funds as well as investments he’s managed, Michael Chesser has built a reputation for increasing property values through a well-defined, repeatable investment process - buying underperforming properties at clear discounts to replacement cost and implementing renovation and repositioning strategies to improve occupancy and cash flow.
Since founding Apartment Income Investors in 1994, Michael and his team have invested in a variety of properties, including multifamily, office, retail, industrial, as well as land and construction projects all over the US.
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT.
THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT CAN BE FOUND HERE.
THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD-LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
ABOUT
HEADQUARTERS
3900 W ALAMEDA AVE STE 1200
Burbank, CA 1200
WEBSITE
View Site
TERMS
StartEngine Real Estate REIT
Overview
PRICE PER SHARE
$10
DEADLINE
Jul. 17, 2022 at 6:59 AM UTC
VALUATION
$100M
FUNDING GOAL
$1M - $75M
Breakdown
MIN INVESTMENT
$500
MAX INVESTMENT
$75,000,000
MIN NUMBER OF SHARES OFFERED
100,000
MAX NUMBER OF SHARES OFFERED
7,500,000
OFFERING TYPE
Equity
SHARES OFFERED
Common Shares
Maximum Number of Shares Offered subject to adjustment for bonus shares
JOIN THE DISCUSSION
0/2500
Joseph Madore
3 years ago
What happened with this. I didn’t know it was closing
0
2
Edward Soblotne
3 years ago
I would like to know what happened and are you going to open it up again?
0
1
Robin Perkins
3 years ago
I'm sorry to see this offer has been cancelled. As someone who did express an interest in investing in your REIT on the StartEngine platform, I would appreciate being contacted in the future about similar opportunities for me to invest in a REIT. Thank you and stay safe.
Show more
0
3
Vivian Crowe
3 years ago
As the SE RIET will be managed by Michale Chesser what will be the relationship between AII and the new REIT. I didn't see the exact statement, but others have indicated that SE REIT will purchase the properties of AII. Is that the intended use of this funding? Is AII currently listed as a REIT on a major exchange? Just looking for more clarity on these points of discussion. Thanks.
Show more
0
1
Kyran Rausch
3 years ago
Is there any plan of going public with this REIT?
0
1
Woyengikuro Yaboh
3 years ago
In a scenario in which SE REIT starts paying out dividends, Can this dividends be re-invested back into the SE REIT?
Show more
0
10
Caleb Naysmith
3 years ago
I like the idea of a StartEngine REIT, but I think leveraging the SE platform to increase profitability would be better than launching just a normal, kinda boring, REIT. If you did this, personally, I would definitely invest in this REIT. SE REIT can acquire various buildings across the U.S. and then they can sponsor and put on various Reg A raises on SE to fund the buildings. Similar to collectibles, you can just take an % stake in the building, or a % of the building cost in cash as profit, or both. Once funded, SE investors will own, say, 90% of the building and receive ongoing dividends from their investment in the building, and a profit from if the building is sold. The REIT will receive money from the raise + dividends from the building. Obviously, the REIT can just outright acquire buildings too as per normal, but I think the REIT profiting from sponsoring Reg A raises would drastically increase profitability for both StartEngine, The StartEngine REIT and help with growth and to differentiate this from every other REIT on the market. Having SE choose the buildings would add a level of legitimacy to these buildings and projects, and the REIT can basically charge the normal premium, like collectibles, as a finders fee for quality investments, and having that SE stamp will help with interest. I think a lot of people here, and hence the slow raise amount, are having a hard time differentiating this from any other REIT on the market, and why would I risk this brand new REIT when I could just go and buy one on the NASDAQ that has given consistent 11% return average for several years. I think this would help with that differentiation, and simply "relaunching" the campaign page to reflect something like this would drastically help IMO. I would personally invest if that was the case as well. Curious about other peoples thoughts? Is this already part of the business plan, and something you already planned to do with the REIT? Would others reading this think this is a good change to the REIT? I'd love to hear Michaels thoughts on this. Thanks
Show more
2
2
Sam Salemnia
3 years ago
When does this fund close?
0
2
Steve Mizer
3 years ago
It states "And all of those dividends get paid to you directly through your StartEngine account." Can we then withdraw these dividends or are they only usable for future investments with StartEngine?
Show more
0
0
HOW INVESTING WORKS
Cancel anytime before 48 hours before a rolling close or the offering end date.
WHY STARTENGINE?
REWARDS
We want you to succeed and get the most out of your money by offering rewards and memberships!
SECURE
Your info is your info. We take pride in keeping it that way!
DIVERSE INVESTMENTS
Invest in over 200 start-ups and collectibles!
FAQS
With Regulation A+, a non-accredited investor can only invest a maximum of 10% of their annual income or 10% of their net worth per year, whichever is greater. There are no restrictions for accredited investors.
With Regulation Crowdfunding, non-accredited investors with an annual income or net worth less than $124,000 are limited to invest a maximum of 5% of the greater of those two amounts. For those with an annual income and net worth greater than $124,000, they are limited to investing 10% of the greater of the two amounts.
At the close of an offering, all investors whose funds have “cleared” by this time will be included in the disbursement. At this time, each investor will receive an email from StartEngine with their Countersigned Subscription Agreement, which will serve as their proof of purchase moving forward.
Please keep in mind that a company can conduct a series of “closes” or withdrawals of funds throughout the duration of the campaign. If you are included in that withdrawal period, you will be emailed your countersigned subscription agreement and proof of purchase immediately following that withdrawal.
StartEngine assists companies in raising capital, and once the offering is closed, we are no longer involved with whether the company chooses to list shares on a secondary market or what occurs thereafter. Therefore, StartEngine has no control or insight into your investment after the close of the live offering. In addition, we are not permitted to provide financial advice. You may want to contact a financial professional to discuss possible investment outcomes.
For Regulation Crowdfunding, investors are able to cancel their investment at any point throughout the campaign up until 48 hours before the closing of the offering. Note: If the company does a rolling close, they will post an update to their current investors, giving them the opportunity to cancel during this timeframe. If you do not cancel within this 5-day timeframe, your funds will be invested in the company, and you will no longer be able to cancel the investment. If your funds show as ‘Invested’ on your account dashboard, your investment can no longer be canceled.
For Regulation A+, StartEngine allows for a four-hour cancellation period. Once the four-hour window has passed, it is up to each company to set their own cancellation policy. You may find the company’s cancellation policy in the company’s offering circular.
Once your investment is canceled, there is a 10-day clearing period (from the date your investment was submitted). After your funds have cleared the bank, you will receive your refund within 10 business days.
Refunds that are made through ACH payments can take up to 10 business days to clear. Unfortunately, we are at the mercy of the bank, but we will do everything we can to get you your refund as soon as possible. However, every investment needs to go through the clearing process in order to be sent back to the account associated with the investment.
Both Title III (Regulation Crowdfunding) and Title IV (Reg A+) help entrepreneurs crowdfund capital investments from unaccredited and accredited investors. The differences between these regulations are related to the investor limitations, the differing amounts of money companies are permitted to raise, and differing disclosure and filing requirements. To learn more about Regulation Crowdfunding, click here, and for Regulation A+, click here.
Michael Brake
3 years ago
Please notify when this investment is available again. I wanted to buy but the wire instructions were never sent.
Show more
0
0