How to Invest with RockStep
Are you ready to start building truly passive income through commercial real estate investment?
The first step is to download and review our offering materials and then set up a call with one of our Passive Investing Specialists.
Review Offering Materials
To get started, you can download and review our investment presentation, private placement memorandum, operating agreement, and subscription agreement and watch a replay of our investment webinar.
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Schedule a Call
After you've watched the investment webinar and looked over the offering materials, you can schedule a call with one of our Passive Investing Specialists, who can answer any questions about our strategy, the Fund, or the investment process.
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Finalize Investment Amount
Once you're ready to proceed, you'll finalize your investment amount and make your pledge via our online investor portal.
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Sign Subscription Documents
After you make your pledge, you'll be able to electronically sign the subscription agreement and operating agreement via our online investor portal.
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Verify Accredited Status
We can only accept investors that meet the SEC's definition of an Accredited Investor. A staff member will give you a form that you can share with your CPA, attorney, or investment advisor, who will prove that you meet the definition of an Accredited Investor. See FAQ below for more information on the criteria.
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Wire Funds
When we are ready to close on the purchase of a new property, we will send you a capital call notice with the amount to wire and wire instructions. We call capital in on a first-come, first-served basis. See FAQ below for more information on this process.
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Reap the Rewards of Passive Investing!
Once you've funded your investment, you will begin to accrue the Preferred Return on your invested amount as of the date on the capital call notice.
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Set up a call today!
Contact us today to set up a call with one of our Passive Investing Specialists.
Once we find out if we are a good fit for each other, you will be on your way to building generational wealth while retaining the freedom to do the things you love.
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Fund Investment FAQs
Use this section to answer questions people have. The copy for each should be only long enough to give a sufficient answer, with internal links to related blog posts for more information.
What is a Private Placement Memorandum?
A Private Placement Memorandum, also known as a PPM, is a document drafted by securities counsel that summarizes the terms of the offering, the details of the investment's material risks, and the conflicts of interest between the Fund Manager and its Members.
How do I qualify as an Accredited Investor?
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Income: Individuals must have earned more than $200,000 in each of the past two years, or more than $300,000 with a spouse or domestic partner, and have a reasonable expectation of the same income in the current year.
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Net worth: Individuals must have a net worth of more than $1 million, either individually or jointly with a spouse or domestic partner, excluding the value of their primary residence.
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Professional knowledge: Individuals may also qualify based on their professional knowledge, experience, or certifications. For example, financial professionals with Series 7, 65, or 82 licenses are considered accredited investors. The certification must come from an accredited educational institution or self-regulatory organization, and demonstrate the individual's understanding of securities and investing.
How do I verify my Accredited Investor status?
There are a couple of ways to verify your "accredited" status.
The simplest way is to have your CPA, attorney, or financial advisor complete a form letter that attests that you meet the requirements of an Accredited Investor.
If you are unable to have one of those professionals provide you with the attestation letter, you can provide tax returns and W-2s that demonstrate that you meet the "income" requirement, or you can provide brokerage statements and other related documentation that demonstrate you have a suitable amount of assets to meet the standard.
Our team will work with you through the process either way.
When do I need to wire in my funds?
We will have a separate closing each time we acquire a property. Ahead of the closing date, we will email capital call notices. You will have ten (10) business days to wire your funds in.
The capital call notice will contain the exact date to wire your funds, the amount to send, and where to wire the funds.
We will call capital in on a first-come, first-served basis. The order is determined by the date that investors signed their subscription documents.
We intend to call in the total amount that each investor has committed. For instance, if you committed $500,000 and we technically only needed $250,000 to close on the acquisition of a property, we would still call the total amount rather than a portion.
If I committed capital today, when do you plan on calling the capital?
We are targeting the acquisition of our first property in Fall 2024. If you were to commit today, we will let you know once we have a property under contract, along with the approximate closing date. You will then receive the capital call notice, which will provide you with the details.
How does the class "bump" work?
To reward early investors of the Fund, we are offering investors that commit within the first $5M of capital commitments to receive one Class of Units higher than they would normally.
Investors committing between $100,000 and $999,999 will receive Class B Units instead of Class A Units. This means you'll receive an 8.5% Preferred Return and a 75/25 split instead of 8.0% and 70/30.
Investors committing between $1,000,000 and $4,999,999 will receive Class C Units instead of Class B Units. This means you'll receive a 9.0% Preferred Return and an 80/20 split instead of 8.5% and 75/25.
How do I access the investor portal to make my capital commitment?
If you are ready to proceed, you can go to https://rockstep.verivest.com to sign up and make your capital commitment.
Once you've registered and made your capital commitment, you can electronically sign the subscription documents and complete your accreditation verification through the investor portal.
What is the investment minimum?
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How long will the Fund be open for investment?
We anticipate it will take approximately 18 to 24 months to raise the entire $50,000,000.
We will bring new capital into the Fund each time we acquire a new property. We are targeting acquiring eight properties in the Fund, which means we will have a closing about every three months.
Can I request my money back?
No. Our Fund is a closed-end fund. Once you invest, your money will be tied up until all of the assets have been sold.
We anticipate it will take six to seven years from the date of the first property we acquire until the date the final asset is sold to wind up the Fund completely.
Along the way, you will receive quarterly distributions of the operating cash flow generated by the properties. When a property is sold, the sale proceeds will pay down your contributed capital until you've received a total return of capital.
Will I have exposure to all of the properties the Fund purchases?
Yes. Whether you participate in the first closing of the Fund or the last closing, you will have an indirect ownership interest in all of the properties the Fund acquires.
We will order an independent appraisal of each of the Fund's properties each time we close on a new property. Based on the results of those valuations, the price of a Unit of any given Class (A, B, C) will be adjusted accordingly.
For instance, those participating in the first closing will purchase Units at $1,000 per Unit. If the property acquired in the first closing appreciates in value prior to the second closing, the Unit Prices will be adjusted upward. This ensures that early investors aren't being diluted by investors participating in a later closing.