Frequently Asked Questions

Investing with Bluefox

What are the benefits of investing with Bluefox?

Bluefox makes it easy for investors to invest in multifamily without having to do their own due diligence and property management. We utilize proven tech and hundreds of hours of professional time to source investments and allow investors to invest in multifamily with reasonable investment allocations.

How is this different from a Real Estate Trust (REIT)

Investing in a REIT is owning stock in a company that invests in many types of commercial real estate. That company chooses which assets they invest in. Bluefox is not a Real EstateInvestment Trust (REIT). With Bluefox, you select the asset you want to directly invest in and have full control of where your money gets invested. You own a percentage of an entity solely devoted to the ownership and operation of an asset you've selected and receive all of the tax advantages that are unavailable to REIT investors. With shares in a REIT you are not only at the mercy of that company's asset acquisition decisions, but you are also bound to their strategy and ultimately to the stock market's constant instability because of the high correlation to the performance of the stock market.

How are Bluefox investments structured?

Investments are structured as interests in an LLC that is created to directly acquire and own the asset. Investors as members of the LLC would then be the ultimate beneficial owners of the asset itself. A Property Management company chosen by Bluefox will be responsible for the day-to-day operations, oversight, reporting, and management of the property. Bluefox is responsible for making the decisions at the entity level and manages the investment.  The responsibilities include, but are not limited to, active engagement with the Property Management company, decisions regarding capital improvement plans, operations, budget and buy and sell.

Will Bluefox invest alongside investors?

Yes. Bluefox principals will invest alongside investors in each offering. We believe in this asset class and just like you, we want our personal capital to work hard for us.

Investor

How do I make my first investment?

First, you'll need to request access to the Bluefox portal. To begin, click the "Sign Up" button above. After submitting your information and speaking with one of our investment staff, you'll gain access to our investor portal. Complete the onboarding steps and be notified on offerings as they come available. To make your first investment, log in to yourBluefox investor account, visit the offering page, and then click the "Invest" button. Following that, choose your desired investment amount and then click "Invest". Then you will be asked to sign an electronic agreement. After that, you will receive payment instructions.

Is my investment liquid? What if I need to sell early?

No, the investments are not traded on public stock exchanges and cannot easily be sold or traded. Every property has its estimated hold period at the end of which the property will be sold on a best efforts basis using experienced advisors and brokers. If for any reason you should need to sell early, Bluefox will assist you on a best efforts basis in locating a buyer. It may, however, be at a discount to the initial investment amount or subject to transaction fees. Since the resale restrictions can be very limiting, you should not invest with the expectation of reselling your investment.

When and how will I receive returns from investments?

Cashflow payouts from rents are typically made on a quarterly, semi-annual or annual basis and are automatically deposited into investors' bank accounts. Returns from asset price appreciation will be received at the end of the hold period. Investors can track distributions to date within their Bluefox investor portal.

What type of reporting doI as an investor receive?

Once the deal is closed, Bluefox will send consistent updates on the status of the investment. You will receive updates at least quarterly. The information provided would include occupancy rates, updates on the number of renovated units if applicable per the business plan, capital expenditure updates and relevant updates on the market. We will also provide a link to the asset’s financial statements, which include the T12 and the rent roll. Overall, we want you to know the status of the business plan and how the rents compare to the projections.

Do I need to be involved in any aspect of property management?

Don’t worry, this is a fully managed investment that requires no involvement on your part. Bluefox manages the investment properties on your behalf.

How do taxes work with this type of investment?

For all tax related questions, always consult with your accountant but most likely the depreciation will be greater than the distributions paid out each year, which can reduce or even eliminate your tax bill until you receive your profits from the sale proceeds at sale. Depreciation is one of the greatest benefits of investing in real estate and why so many are attracted to this type of investment. At the beginning of the following year, Bluefox will have a Schedule K-1 tax report for you on your Bluefox investor account. The K-1 is a tax document that includes all of the pertinent tax information that you will use to fill out your tax forms. You can always access your investor portal on BluefoxVentures.com

Ways to fund your investment

What type of funds can I use to invest?

You can invest with cash, through an entity including trusts, using Self-Directed IRA’s, 1031Exchanges and more. For each investment, you will be able to select which entity will be used to make the investment, which bank account the investment will come from, and which bank account will receive distributions. Entities must be based in the United States. For cash payments, Bluefox allows you to fund your investment via ACH or wire transfer.

How can I use my retirement funds to invest?

You can use a custodian like ForgeTrust to invest in our deals.  First you have to transfer funds from an existing IRA or roll over assets from a current 401(K) to a custodian like ForgeTrust in just a few easy steps. A company like ForgeTrust lets you invest in Bluefox while protecting the tax-advantaged status of your retirement account.

Let's Build Wealth Together

Bluefox creates multifamily investment opportunities for investors across the globe to expand and diversify their investment portfolios

Schedule a 30-min Introductory Call

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