Frequently Asked Questions
Who is eligible to invest with Iconic Capital Group?
ICG investment opportunities are available to investors who meet the SEC criteria for Accredited Investors:
An individual annual income of at least $200,000 or a joint income of $300,000 in each of the past two years; OR
Personal or joint assets of at least $1 million (not including the value of your home)
Is there an investment minimum?
ICG’s minimum investment is significantly lower than most traditional private equity firms which often start at $250,000. With ICG, qualified investors can participate with a minimum of only $50,000.
How does ICG choose which properties to invest in?
Our investment process is designed to minimize risk and maximize returns for our investors. Critical to that promise is a rigorous due diligence process for each and every acquisition.
We dig deep into the physical, financial and intangible components to fully understand the strengths and opportunities of the asset. We then put together a comprehensive business plan for how we will improve the upon the property and what the projections of future potential are. We provide this detailed analysis to potential investors in a prospectus. Our investors get complete transparency around why we choose our properties, the supporting data, and estimations on the key financial points. Since these properties are based in Southern California, we are available to meet at the site and tour the property and neighborhood to provide investors deeper insights and understanding of their investment.
Once investors complete a review of the prospectus and decide they want to proceed with the investment, they are sent an investment package that contains an Investor Questionnaire to qualify their eligibility as accredited investors and a Subscription Agreement which outlines the legal and financial details of the investment.
These documents are typically completed online and electronically signed. Once we receive and approve the application, investors are asked to wire their funds into the property trust account which are subsequently used towards the purchase and renovations of the property.
How does the investment process work?
ICG provides financial projections to our clients in advance. Our prospectus outlines the estimated date of first distributions and more. Each property is different, but typically investors can expect a major cash event within 18 - 24 months following their initial investment, followed by quarterly cash flow dividend payments.
Because the majority of our projects are value-add, we must first create value at the property by renovating and repositioning the asset, which can take between 9-14 months, and then stabilizing and refinancing.
In the past, our investors have seen cash dividend payments of 50% - 95% of initial investment within 24 months, followed by quarterly cash flow dividend payments of typically 6% - 10% of initial investment per year.
How long before I see returns on my investment? When will I get my investment back?
When you invest with ICG, you invest directly in a specific property and receive all the benefits of direct equity ownership and protections of a security structure
Full participation in any cash flow income, tax-free income from refinance, and appreciation
All income tax shelter benefits reserved for owners, including depreciation, and interest and operating expense write-offs
Reduced capital gains tax rates on potential gains, and potential for participation in tax-deferred exchanges upon sale
Limited liability and no personal recourse
When I invest in equity investments with ICG, what do I own?
Yes! Many investors are not aware that they can also utilize pension or qualified funds to participate in our programs. We accept funds from Self-Directed IRAs, Defined Benefit and Defined Contribution Plans. These provide investors the benefit of deferring taxes or using pre-tax funds to purchase.
Most people invest in IRA’s, 401(k) or other pension plans, normally through an employer and often, when they leave, the funds saved are left in the plan. An option that many of our investors utilize is to consolidate these funds into a Self-Directed IRA, which is done without triggering any taxes, and allows an investor to decide exactly where to invest their money - not the limited choices permitted within an employer's plan. A Self-Directed IRA is technically the same as other IRAs (allowing investments to grow tax-deferred over time to maximize growth) but it gives the investor complete and total control over what they invest in. The Self-Directed IRA may also qualify for yearly tax-deductions, provide added asset protection, and assets for qualifying accounts may be passed to future generations.
Our team is happy to refer you to a number of IRA intermediaries (no affiliation with ICG) to assist you.
Can I use a self-directed IRA account or another type of retirement account for my investments?
Unlike many firms, which often charge 5% - 8% overall fees, we do not charge our clients fees for acquisition, disposition, or other asset-based fees. Because we invest alongside our clients in each and every property, our interests are aligned. We only make money after you make money. And we only make money if the project makes money. Our fee model is based on simple and straightforward profit sharing.
Are there fees for investing?
No investment is ever guaranteed, but ICG’s core strategy is built on minimizing risk. Since inception, we have consistently generated higher than average returns for our investors, and it’s a track record we intend to continue.
We invest in multi-family properties, universally considered the least risky of all real estate asset classes. All demographic indicators suggest it will be a strong market for years to come. Additionally, when you invest with ICG, you’re investing in a physical property in the Southern California market as opposed to a stock, bond or other non-physical assets. You can go see it, touch it, feel it. Its value can almost never go to zero.
Are investments in ICG properties secure?
The primary difference between our offerings and REITs is direct ownership. REITs come in a variety of strategies among thousands of companies. When you invest in a REIT, you do not invest directly in any single property or project. It is similar to a mutual fund where you’re investing in a large pool of properties. Like mutual funds, many REIT portfolios have poorly performing properties that drag down the overall return. There are also fewer tax benefits to REITs. Dividends earned from REITs are taxed as income and any appreciation in value of stock is taxed as capital gains.
With crowdfunding, investors are typically purchasing shares in a Limited Liability Company (“LLC”) controlled by the crowdfunding platform. That LLC, in turn, invests into an LLC or Limited Partnership (“LP”) that holds title to the real property. Essentially, you’re investing in a company that then invests into another company, which means investors have no direct relationship with the property sponsor.
How are ICG offerings different from a REIT or Crowd Funding investment?
Each ICG investment includes a redemption plan which allows an investor to request liquidity within one year of purchase. Redemptions are subject to certain limitation and value may be subject to a liquidity penalty. Investment liquidity information is available in the disclosure contained in the Offering Memorandum and Private Placement Documents.
Is this investment liquid?