BECOME AN INVESTOR Three Easy Steps to Becoming an Investment Partner

Novo Capital Management aims for at least one deal per half, but it is solely market driven.

In special circumstances, Novo Capital Management will work with investors to find another investor to sell shares to, but it does not advise either party as to price, terms, etc. Investors are responsible for arranging the deal between themselves and the buyer. Novo Capital Management only prepares the documents for the transfer of interest. It is important to note that the buyer must be an accredited investor if the initial offering was available only to accredited investors.

Novo Capital Management can produce a statement upon request.

NCM constantly evaluates the markets in which it operates to determine when it is best to refinance or sell. The timeline presented in the business plan is representative of what NCM expects regarding the property’s performance. If market conditions change, NCM will make the appropriate decision at that time which may cause the hold period to be shorter or longer than the initial business plan intended.

There is no tax due from cash-out refinance proceeds. Taxes are deferred upon the sale of the asset.

The preferred return is accrued and paid only from the operating income. If operating income is insufficient to pay the preferred return, it is accrued and paid first when income is available. There is no distribution to the General Partner (GP) unless the Limited Partner (LP) is current on the preferred return payments.

The distributions from operations are classified as ordinary income, depending on several factors as determined by the CPA at the end of each tax year. The income is sheltered by depreciation losses passed through to the investors, so investors will incur net losses that may cover some or all income for tax purposes.

There are many factors that affect the annual tax outcome, and NCM is not able to provide investors with individual estimates. An investor may consult with their CPA for an estimate using the deal Sources and Uses and Financial Projections provided in the Business Plan.

$50,000 is the minimum investment required for NCM opportunities.

NCM currently accepts both accredited and non-accredited investors.

Yes, NCM does accept non-SEC accredited investors. However, NCM will attempt to ensure investors are not taking undue risk.

No, NCM does not currently accept foreign investors.

All potential investors are required to participate in a discovery call. After an Investor Questionnaire is filled out, and the brief introduction call is completed, an investor will qualify to invest with NCM. Investors will be notified of new deal opportunities when they are made available. When a deal is open for investment, you will have the opportunity to review an Offering Memorandum, (OM) and attend a webinar to review the specific offering and business plan. You will be guided through the subscription process and be provided with all required legal documents including the Private Placement Memorandum, Subscription Agreement and Operating Agreement. The investment is not final until all legal documents have been signed and funding has been contributed and cleared.

Yes, but NCM must receive funds by the funding deadline. IRAs often take a while to send funds and if the deadline is missed, it is possible to be removed from the deal.

Yes, but NCM must receive funds by the funding deadline.

NCM constantly reviews its portfolios and properties and will take any action recommended by its CPAs, including cost segregation studies, tax analysis, or changes in tax laws, that will maximize the after-tax benefits to investors.

Yes, the depreciation flows through to the LP class on the yearly K-1.

Payments are made via Electronic Funds Transfer (EFT). Timing of cash distributions is specified for each investment offering but is typically 30 days after the quarter ends.