Frequently Asked Questions

THE QUALIFICATIONS

To invest with Greystone an individual or entity must qualify as an Accredited Investor. Historically, individual investors who do not meet specific income or net worth tests, regardless of their financial sophistication, have been denied the opportunity to invest in private funds. We are pleased to announce that in August of 2020, The U.S. Securities and Exchange Commission updated the Accredited Investor Definitions, allowing individuals to be permitted to participate in private capital markets not only based on their income or net worth, but also based on established measures of financial sophistication, professional knowledge, experience or certifications in addition to the existing tests for income or net worth. 

At Greystone we believe access to quality investment opportunities should be available to everyone looking to create wealth, which is why we are always available to answer questions regarding the recently improved & expanded Accredited Investor Status Definitions.

Below is a quick reference list of the traditional income or net worth criteria. However, it is important to note that there are other categories of Accredited Investors, which may be relevant to you, including the recent amendments that have improved & expanded the qualification criteria. 

Accredited Investor – Quick Reference 

An individual with income in excess of $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year. 

(OR)

An individual with a net worth, or joint net worth with spouse, in excess of $1,000,000 (excluding the net value of the person’s primary residence).

(OR)

Any trust, with total assets in excess of $5 million, not formed specifically to purchase the subject securities, whose purchase is directed by a sophisticated person.

(OR)

Certain entities with total investments in excess of $5 million, not formed to specifically purchase the subject securities.

(OR)

Any entity in which all of the equity owners are accredited investors.  

*In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

MINIMUM INVESTMENT AMOUNT

The minimum investment amount varies by fund but is often as little as $15,000. 

Your financial risk is limited to the amount of your investment in each fund. There are numerous tactics that can be deployed to secure each investment such as selling, leasing, or repurposing a property. However, like any other investment, there is always the possibility that your capital invested could be lost.

Investments are speculative and are subject to risk factors outside the control of the fund and our actual returns may be higher or lower than the targeted returns and may include a complete loss of your investment.

As a general principle the investment period of each fund is between 10-20+ years. We exit each property and fund when we believe it is optimal for our Co-Investors. The duration of each fund is at the sole discretion of the fund manager.

Each fund will have its own return projections. As a general rule we target investment opportunities that provide 4%-10%+ annual cash-on-cash returns and an ultimate total return of 13%+ (IRR).

In most cases the targeted distribution date begins within 6 to 24 months of the property being stabilized.

No! One of the primary advantages of investing with Greystone is that we secure non-recourse debt to finance our properties. Generally, when individuals buy investment property not only are they at risk of losing their initial down payment but are also guaranteeing the entire balance of the money they borrow to buy the property regardless of the borrower’s ability to collect rent from the underlying tenant.