Frequently Asked Questions
A list of frequently asked questions.
Who is Astral Properties?
Astral Properties is a team of professionals from a diverse set of backgrounds and experience in real estate, architecture, construction, finance, and technology. For more information about our company, click here.
Who invests with Astral Properties?
Astral Properties investors include accredited investors, institutions and family offices.
What is an accredited investor?
A person who meets the individual net worth requirements and/or income requirements set forth by the SEC, and has knowledge and/or experience in financing and business matters, and is capable of evaluating the merits and risks of the prospective investments.
How does the process to invest work?
Process steps to invest in an Astral deal:
- Sign up for our newsletter or reach out to investor relations to be included in investment offering distributions
- Receive offering memorandum for active deals
- Complete and investor accreditation
- Invest in the deals you like. You will need to sign the subscription agreement and deposit funds for your investment amount
How do investors get updated on their investment?
Astral send a quarterly investment update via email. The update is also available on our Investor Dashboard. We will also send your tax documents every year.
Is there an investment minimum?
The minimum investment is different for each investment, please review the offering memorandum for details related to the investment minimums.
What is a Capitalization Rate (Cap Rate)?
A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor’s potential return on investment. This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property.
When acquiring income property, the higher the capitalization rate (“Cap Rate”) the better;
When selling income property, the lower the Cap Rate the better. A higher cap rate implies a lower price, a lower cap rate implies a higher price.
How and when is cash flow distributed?
If distributions are available they will be distributed on a quarterly basis. They are sent via ACH (if details provided) or a check will be sent in the mail. If you need to change your bank details please reach out to investor relations. Distributions are not guaranteed and are subject to property performance. Please read the subscription agreement for the deal you are invested in to understand the projected distributions.
What is a K1?
The K-1 tax form is provided to investors annually with information related to their share of the property’s taxable income, deductions, and credits. They will need to enter this K1 information with their tax return.
When will K1s be available?
Astral engage with our accounting firm for preparing investor K-1s. All K-1s are sent to investors by the first of April annually.
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