Using GrandeInvest Platform
Q1. Why should I use GrandeInvest to invest in real estate?
It is free and convenient. GrandeInvest is a convenient, no-cost service that allows you to invest in and monitor your real-estate interests around the world from your computer and mobile devices anytime and anywhere, with no fees for registration or investment.
Geographic and asset variety. Enjoy unmatched access to deals in a variety of asset types (equity, debt, funds) and location (Americas, Caribbean, Europe, Asia, Oceania) allowing you to participate in opportunities often only available to a select group of investors.
Offering transparency. Unlike most platforms in the field, which may provide just an Executive Summary, GrandeInvest offers you unparalleled, detailed investment information including proformas, site plans, financial and legal documentation, management information, videos and much more.
Real time execution and Information. You receive timely information and update alerts. Using your own investor dashboard, you communicate and execute investments as well as sign documents electronically. GrandeInvest offers you the ability to appraise details of the property, review legal documentation, and perform other forms of due diligence.
Ownership. When making an investment, you become an owner of shares in an affiliated special purpose entity limited liability company.
Secure investments. Your investment is residing in an escrow account held by a United States bank (for US investors) or a Canadian bank (for international investors). AML (anti-money laundering) checks are performed to comply with applicable regulations. You can view current funding status as evidenced by the escrow deposits.
Q2. Do I have to pay any fees using GrandeInvest?
No. Joining GrandeInvest and browsing the portfolio is free. If you choose to invest in a specific offering, GrandeInvest will not charge for the using GrandeInvest platform.
Q3. Who typically invests in offerings on GrandeInvest?
Investors meeting accreditation rules include high net worth individual investors and institutional investors including family offices, registered investment advisors, private equity firms, hedge funds, banks, and asset managers.
Q4. What luxury and celebrity brands are involved and what is their involvement?
The Grande Brands Family consists of Luxury Brands that may include architectural and hotel brands, renowned interior designers, spa brands, and Celebrity Brands from the world of entertainment and sports. Participating celebrities brand sports amenities of our metropolitan and beach resort type developments or spearhead one of the eight sports academies of the Grande Sports Centre concepts. The actual involvement of celebrities is project specific and may involve property branding and marketing, management and operation, curriculum design and architectural inspiration, as well as product merchandising. As each project reaches its funding goal, a public announcement will be found on our Investor News page and on our Grande Celebrity Brands page. If you are a registered GrandeInvest member you will also receive an early notification thought email correspondence.
Q5. Does GrandeInvest recommend investments?
While GrandeInvest provides investors with comprehensive information including market and financial data, property information, and a corporate overview of the deal sponsor, local development partner and development team, in addition to third-party support data. GrandeInvest makes no recommendations about any particular investment. Each investor is advised and must perform his or her own due diligence before making a decision to invest. Each investor should consult with their legal and tax counsel.
Q6. Are the offered investments risky?
Yes, these investments are highly speculative and investors should be able to bear the loss of their entire investment.
Q7. How does the GrandeInvest investment process work?
The platform lets you make knowledgeable investment decisions. All investors must pass our initial screening process to qualify for accredited, non-accredited, or foreign status. For further detailed information on the investment process, please click here
Q8. Can I invest in an offering immediately?
No. If you are a registered GrandeInvest member who has chosen to make an investment into a particular offering, we require a “cooling-off” period as recommended by the Securities and Exchange Commission. GrandeInvest provides a 21-day cooling-off period, which allows investors to get comfortable with the platform and our investment opportunities to make an informed investment decision.
"Yes, If you are a registered GrandeInvest member who has chosen to make an investment into a particular offering, we encourage you to get comfortable with the platform and our investment opportunities to make an informed investment decision.
Q9. How do investors benefit?
Investors not only may benefit from potential strong returns and cash flow, but they also enjoy access to pre-vetted debt and equity real estate investments, lower investment minimums, and the opportunity for increased diversification. For US investments, IRS-approved tax engineering services help reduce income tax liabilities and improve return of investment through accelerated depreciation. Investors may also benefit from value-add options that may include visa capital investments and conversion options to single-, multi-family and vacation ownership, as well as future tuition credits. These specific value-add packages are available for specific projects as described in the offering package. Should you invest in a specific project that offers such opportunities, please contact the GrandeInvest Investor Service Team by phone or email for further information.
Q10. Are GrandeInvest offerings Real Estate Investment Trusts (REITs)?
No, GrandeInvest does not offer investments in REITs. GrandeInvest allows you to choose a specific project or fund covering several projects, whereas a REIT only allows investments into pools of capital that are often limited by asset class or geography. Some REITs also charge fees up to 15% of invested capital. GrandeInvest does not charge any fees. REIT investors typically have little to no information regarding actual properties the REIT invests in and also cannot control the investments a REIT makes. GrandeInvest, however, offers you investments into individual properties in locations of your choice, providing you with transparency and control over your investment selection. REIT shares are not the equivalent of physical ownership of real estate and are similar to a derivative of real estate. With GrandeInvest, however, you own units of an LLC responsible for the financing, operation, and ownership of one asset.
Q11. What is The Grande Organization?
The Grande Organization LLC (The Grande Organization or TGO) is issuer, sponsor and developer of the projects listed on GrandeInvest. GrandeInvest is the product of TGO, which was founded in 2006 with a real estate focus and is based in New York. Today, TGO, together with its affiliates, principals and partners, has a consolidated extensive real estate development, finance, asset management, wealth management and entertainment history with completed projects located throughout the globe.
Q12. Does The Grande Organization charges fees?
The Grande Organization acts as issuer, sponsor and developer of each private placement offering and is also a shareholder in the investment and local project limited liability company which has specifically been formed for each offering. TGO’s management fees depend upon the type of investment and the complexity of the organizational structure. As minority partner and shareholder in the limited liabilities companies set up for investment and project development, we earn development fees, asset management fees and development management fees which are disclosed in the financial data sections found in the GrandeInvest website. TGO doesn’t receive distribution payments until other co-investors also get paid. As with all other investors, TGO receives a return on the profits when distribution payments are made and assets are sold. Our objective is making sure the investment opportunity we present will be successful because our own bottom-line interests are aligned with yours.
Q13. What happens if The Grande Organization goes out of business?
In this event, investors whose investments are still residing in escrow accounts will be refunded 100%. For investors with investments in offerings that have been released from escrow, the following applies: As escrow funds are released, investors, along with The Grande Organization, have become a partner and shareholder in the investment limited liability company or applicable equivalent, which has made an investment in the domestic project development limited liability company. In the event of a bankruptcy of The Grande Organization (which will be a minority shareholder in the investment company), it would be up to the bankruptcy courts to decide if normal operations would continue under a re-organization filing. However, the intent of current management would be to operate as usual, secure additional time to market the development until adverse conditions improved, and secure additional capital if required. If additional capital was required in such a re-organization filing, shares could be offered to co-developers, existing and new investors to keep project development schedules maintained and assure your investment return is secured.
Q1. I am a US investor. Can I invest in projects located within the United States?
Yes; if you are an Accredited Investor (individual/entity)
with US residency/registration, you can invest in our private placement offerings located within the United States. As an accredited investor, you must meet certain requirements defined by the US Securities and Exchange Commission. This accreditation criteria also applies to entities such as a LLC, LP, or trust. As an owner of an LLC, LP or beneficiary of a Trust, you may also invest if the total entity assets exceed $5,000,000. As an individual investor, either your net worth must exceed $1 million excluding the value of a primary residence, or your annual income must exceed $200,000 for an individual / $300,000 per couple in each of the prior two years and must expect the same for the current year.
No; if you are a Non-Accredited Investor with US residence under SEC regulation.
See what SEC accreditation requirements apply to you.
Q2. I am a US investor. Can I invest in international projects?
Yes; if you are an Accredited Entity or Individual Investor
, by SEC accreditation
standards you may invest in foreign real estate projects using GrandeInvest
. You may also invest in a domestic or foreign entity set up specifically for this purpose.
No, if you are a Non-Accredited Investor. However, if you hold a second passport or residency, different rules may apply and you may be able to invest under the regulatory the requirements of the foreign country where you reside. Please contact [email protected] to determine your eligibility, specifying country of residence, passports held, desired project/location, amount of potential investment, and financial and background information of you or the firm/entity you represent.
Q3. I am a non-US investor. Can I invest in projects located inside the United States?
Yes; if you are an Accredited Foreign Institutional Entity or Individual
Investor meeting SEC accreditation
requirements, you may invest in certain approved projects within the United States. For individual accredited investors, additional requirements may apply. Please contact [email protected]
to determine your eligibility.
No; if you are a Non-Accredited Individual Investor, you may currently not invest in private placements offered for US locations on GrandeInvest.
Q4. I am a non-US investor. Can I invest in international projects?
Yes, you may invest in international projects listed on GrandeInvest.
However, these investments are subject to certain requirements in your country of residence and/or the country where the project is located which may or may not include certain accreditation requirements. Please check back with us to determine your eligibility using [email protected]
Q5. How many investors can participate in each offering?
GrandeInvest allows a limited number of investors to participate pursuant to local regulatory restrictions.
Q1. What types of investments are offered?
There are three types of investment vehicles offered: (1) equity, (2) debt, and (3) signature actively managed real estate pooled fund offerings. Available real estate asset classes include upscale Residential, Commercial, Retail, and Mixed-Use properties, (i.e., investments in existing and/or future developments or property acquisitions). When viewing the GrandeInvest platform, you may choose from the following offering types according to your (a) Regional Preference and by (b) Offering Program. Regional Preferences currently offer a choice of Americas, Caribbean, European and Asian locations. The Offering Program includes choices by Project Type for development of existing properties (Beach Resorts, Metropolitan Communities), and by Real-Estate Fund. The Grande Sports Centre Campus Offerings include Sports Celebrity Academies (a choice of eight celebrity-branded sports academies for golf, tennis, soccer, basketball, sailing, equestrian, swimming, and ice hockey).
Q2. What are GrandeInvest Signature Funds?
GrandeInvest Real Estate Signature Funds are actively managed diverse pooled offerings with one or more regional concentrations. The strategic allocation of the fund components may be a mix of funds designated for future Grande property acquisitions and/or funds to be invested into existing Grande real estate developments.
Q3. Can I make an investment in a single-use type?
Yes. If you would like to execute an investment within a specific investment focus that only considers investments in single-use buildings such as a hotel or retail complex, celebrity-branded recreational amenity, residential building project or conference center facility, we will be happy to make those arrangements for you. Please contact our Service Team by email or phone.
Q4. Is there a minimum or maximum investment?
The minimum investment varies according to the projects, and currently ranges from $25,000 to $100,000 per investment, although this may vary for future offerings. There is no maximum. An investor may invest the full funding amount.
Q5. Can I invest through an IRA?
We do not accept traditional Self Directed IRAs (where custodian approval is required before making an investment). However, if you are able to link your self-directed IRA with a bank account and can transfer funds immediately, we can accept the investment! If this is a possibility, please let us know and we would be happy to help out. Unfortunately, as we are not a financial or tax advisor, we are not able to suggest alternatives at this time and must encourage investors to do their own due diligence in finding appropriate IRA vehicles.
Q6. How long is the investment period?
The investment period varies widely depending on the type of investment. Investing in loans could be 1 to 7 years, while equity investments could range from 3 to10 years. You can review the expected hold period for each investment on the executive summary.
Q7. How and when do I earn returns?
If you invest in an equity offering
, the LLC you invest in will be secured by ownership and/or development rights of a residential or commercial property and will receive periodic cash flow from rents and/or a share of the proceeds when the property or properties are eventually sold.
If you invest in a debt offering, the LLC you invest in will be secured by a residential or commercial property mortgage and you will receive monthly, quarterly, or annual interest payments after funding end date and
if funding goals are met. Payments will be deposited directly into a bank account of your choice in accordance with the terms of the operating agreement.
If you invest in a fund offering, you will invest in a global LLC which will receive payments directly or indirectly from the combined profits of all projects in which the fund LLC holds an ownership interest.
For all equity, debt or fund investments, your share of applicable net income, cash flow, capital proceeds and/or debt service payments will be deposited directly into a bank account of your choice in accordance with the terms of the operating agreement. For further details, please review the operating agreement for the specific investment opportunity you are considering.
Q8. How are investment payments executed and remitted to investors?
GrandeInvest accepts only ACH transactions and provides you with payment information at the time you select the invest button on GrandeInvest. As you transfer your payment to the designated escrow account , funds will be released to the project only if the minimum capital raise or funding goal is met. Your investment will then be transferred into the investment limited liability company specifically set up for the project, which will provide debt or equity investment into the project LLC. Returns on investments, interest rates and principal repayments will be remitted from the project LLC to the investment company, which will distribute the returns to your account, net of any applicable servicing, processing or management fees.
Q9. What happens if the minimum amount is not met?
Should a funding goal not be met, GrandeInvest can extend the funding period until the funding goal is met, modify the capitalization and development plan to accommodate the investment raised, offer investors the opportunity to redirect their investment to a similar alternate project, or offer investors the opportunity to redirect their investment to a Grande Signature Fund. Otherwise, 100% of funds transferred by you to us will be returned to you. Please note that in certain cases, the target funding amount may be increased in order to meet investor demand for a specific investment opportunity if the increased target funding does not adversely impact projected investor returns.
Q10. What happens if the project requires more money?
Each offering provides a comprehensive business plan and projected budget. Capital call requirements can vary by operating agreements. They are listed on each offering. To avoid capital calls we have introduced minimum equity funding goals for most projects to fund model center developments that allows for pre-selling of residential properties to minimize equity, debt and other requirements and to maximize investment returns. Existing investors will never be required to fund additional capital; however, they may be invited to make additional investments to the property beyond the investor’s initial investment. If capital calls are required, existing investors (including The Grande Organization) will be subject to dilution. However, there is no obligation for existing investors to contribute more capital. If an offering requires additional loans, the ownership interests of The Grande Organization and its project investors may become subordinated to those loans and as those loans would be paid back before equity capital is paid back. Please check the operating agreement for capital call provisions before making an investment.
Q11. Can I cancel my investment?
You may cancel your investment any time after the cooling-off period until the funding end date. However, your funds will be refunded to you only after funding end date, which varies from 6 to 10 months, and only if the funding for the specific project has been over-subscribed, if you are able to replace the investment with an alternate investor, or if TGO is able to replace you with an alternate investor. Cancelation must be submitted by email or letter. Should you wish to exit after the funding goal end date, certain hold periods may apply as described in the Operating Agreement of the specific investment. The private real estate investments are placements that are not traded on a public market. Hence, your shares in these investments cannot be easily traded or sold.
Q12. What do I own when I invest in GrandeInvest offerings?
After making an equity or debt investment and signing the private placement memorandum, you become a partner and shareholder in the investment company that The Grande Organization sets up specifically for each project. This investment company is a Limited Liability Company (LLC) or equivalent. The investment company in turn will provide equity for or make a loan on a real estate property utilizing a second LLC, LP, or equivalent (the project property company or property company) that in turn owns the real estate property and which is incorporated in a project’s jurisdiction as soon as the escrow is released. Using this structure, you may benefit from limited financial exposure while also avoiding taxes at the entity level.
Q13. Who owns the property?
The investment company that you have invested equity in invests in the project property company as a majority investor with board member representation to make sure that your investments are managed properly and the development process is appropriately performed. If you invest in a mortgage investment, the ownership of the property is still under the same structure. The mortgage company that you invested in will loan funds either directly to the property company or will establish a locally domiciled mortgage company through which the loan will be structured, depending upon the applicable government regulations and legal environment best suited for mortgage investors.
Q14. Who sets up the investment and project companies?
The Grande Organization and, where applicable, its local development partners act as the developer of the private placement offerings listed on the GrandeInvest platform. TGO, through its affiliates, also is a partner and minority shareholder of the project property LLC created for each project. We strive to keep the organizational structure of each project streamlined to minimize overhead and maintain efficient operations. To open the funding process for global investors, we have developed the current business model which includes the formation of an investment and development company for each project to maximize local tax benefits and minimize investor liability.
Q15. Why do you create an investment and property company structure?
The investment limited liability company is created to manage investments made by investors, release of escrow funds, and distribution of returns to member owners. The property company is set up as a limited liability or equivalent company formed where the project is located, and which is responsible for representing investors throughout the development, management, and asset monetization processes.
Q16. Who runs the investment, property and development companies?
While the investment and property companies are run by The Grande Organization, the local project development companies are run by TGO-affiliated development, construction management and operating service companies. The Grande Organization serves as Managing Member of each company to ensure that the development process and development partners act in accordance with the mutual benefit of all investors and development and management partners. As a shareholder and partner, TGO has “skin” in the game, and it is in our own best interest to make sure the investments are properly managed and that the development process is appropriately conducted.
Q17. Where are the primary and secondary investment and project development companies established and domiciled?
Typically, the investment company is established in Delaware for US investments, and at designated international banking centers for international investments (Bahamas, Cayman Islands, Panama, Gibraltar or Hong Kong). The property company is established in the local state or country where the actual project is being developed, re-developed or expanded.
Q18. Where are the escrows held?
We work with various leading banks and financial service providers in the field such as FundAmerica, The Bank of Nova Scotia and Sun Trust Banks Inc. depending on where the projects are located and if you are an investor with US or foreign residence or registration.
FundAmerica provides escrow in compliance with Rule 15c2-4 and is an ACH Funds Transfer
Bank of Internet USA is a fully insured, publicly traded online bank. It offers a full line of consumer products, including checking and savings accounts, exclusively over the Internet.Bank of Internet USA offers a full line of consumer products. It uses most of those deposits to make home loans and to finance the purchase of multifamily housing through its Apartment Bank division.
SunTrust Banks, Inc., is an American bank holding company. The largest subsidiary is SunTrust Bank. It had US$175 billion in assets as of December 31, 2013. SunTrust Bank's most direct corporate parent was established in 1891 in Atlanta, where its headquarters remain. SunTrust operates 1,497 bank branches and 2,243 ATMs across Southern states, including Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia, and Washington, D.C.
Conversion & Value Add Packages
Q1. How do conversion options work?
Making your investment with a specific GrandeInvest offering may provide you an option to convert your investment into (a) Single-Family Residence. (b) Multi-Family Residence, or a (c) Vacation Ownership within the development project in which you have made your investment. You may also qualify to convert your investment into a Tuition Sponsorship (for a family member or others) at a designated Grande Excelsior School or Grande Sports Academy that may be located at a Grande Sports Centre. Such tuition credits may include tuition, boarding fees, and sports education enrollment fees.
Q2. What types of capital investment visa services are offered?
The Grande Organization provides offerings that may give investors access to an investment country’s immigration investor program (e.g., EB-5, CIP, Golden Visas). This ability to secure foreign visas and passports may apply to to the United States, the Caribbean, and certain European and Asian countries. A passive investment, such as buying a commercial or residential real estate property and other investments, may qualify the investor for a residential or business immigration program. To obtain a safe haven residency or citizenship under business immigration, it is very important to establish “business ties” with that country. There are several GrandeInvest
projects that specifically qualify for these requirements, or may qualify in the future as part of the project’s future capitalization plan. Please contact us at [email protected]
to learn more about the opportunities and determine your eligibility.
Q3. What tax engineering services are available?
The utilization of engineering-based, US government approved tax benefit tools may be available to you to reduce current income tax liabilities using accelerated depreciation along with many other engineering studies to potentially enhance investor savings and returns. We are working with specialized service companies that provide customized services. Please contact us at [email protected]
to learn more about the services available to GrandeInvest
Taxes (Note: The following Q&A are intended as guidance but do not replace a qualified tax professional)
Q1. How will I be taxed as a US investor with US investments?
As an investor in the GrandeInvest listed offerings, you become a partner in a partnership (LLC or equivalent), which will file a Form K-1 to the IRS used by a partnership to report your share of income, deductions, credits, etc. A partnership in general is not subject to income tax, but you may be liable for tax on your share of partnership income, whether distributed or not. As a debt investor, you may be required to file Form 1099-INT for interest income earned in addition to filing K-1. You will receive a copy of the K1-Form and 1099-INT Form by April 15th (subject to third-party delays) that shows which NIIT (net investment income tax) rate to include in your share on your tax return, if a return is required. Should you have to file your tax return early you can file an amendment to your return to include your K-1. Please discuss details with a qualified tax professional.
Q2. As an equity investor in US projects, how are cash payments to me taxed?
As a partner in a limited liability company, cash payments typically represent partnership distributions under US tax law. These partnership contributions are not taxable (includes US withholding tax) because you are taxed on your allocated share of partnership income. Distributions received in excess of your partnership share may be taxable. However, certain sources of non-resident income from US partnerships is subject to US withholding tax. Please consult your tax advisor.
Q3. If I invest in the GrandeInvest signature fund which invests in multiple US states, will I need to file state taxes for each of those states?
Individual state requirements determine which state income tax, withholding and filing requirements will apply to you. Federal and state tax filing requirements are complex. While generally no withholding tax applies to partnerships, we strongly advise you to consult with your tax professional. The Grande Organization will work with all investors to assist in the coordination of efficient tax filings whenever possible