Frequently Asked Questions
-
Investors receive quarterly distributions from rental income and may benefit from property appreciation upon sale.
-
Investments are locked for 3-5 years, depending on the property.
A secondary market is planned, allowing investors to sell their shares, but no timeline is currently available.
-
Investors receive a Schedule K-1, which reports their share of income, expenses, and depreciation from the property.
Depreciation benefits may reduce taxable income, potentially lowering tax liability.
Consult a tax professional to understand how this applies to your specific situation.
-
Each property maintains 3-6 months of reserves for expenses, protecting against short-term downturns.
Properties are carefully selected in strong rental markets to minimize risk.
If long-term performance is below expectations, a sale or refinance may be considered to optimize investor returns
-
All fees are paid from property revenue, not investor contributions.
Fees include property management (10-20%), investment management (1-2%), and an AUM fee (0.1-0.3%)
Optional premium memberships may offer additional benefits in the future.
-
Many investors choose to invest through a Self-Directed IRA (SDIRA) or Solo 401(k).
Consult your IRA custodian or financial advisor to explore eligibility.
-
Yes. All real estate investments carry risks, including market downturns, tenant vacancies, regulatory changes, and interest rate fluctuations.
Honeyshares mitigates risk by diversifying across STRs and LTRs, maintaining reserves, and using conservative underwriting.